With the appetite for travel on the rise, and travel patterns assuming a new normal, it’s a good time to remind ourselves of the importance of getting the right travel insurance. And enough of it to protect the kind of holiday we’re taking, especially for any trips with an adventure element.
Our friend, Dr Geoff Ramin, Allianz Partners Chief Medical Officer, is back to shed light on how to choose the most suitable cover for your travels.
Dr Ramin breaks travel insurance into three key categories: your trip, your belongings and you. We can probably all attest to this: holidays don’t always go to plan.
Comprehensive travel insurance is Allianz’s highest level of cover for overseas travel, designed to insure overseas medical, hospital and dental expenses, personal liability, luggage, unexpected trip cancellations and much more. When more customised insurance is needed, Allianz also offers travellers a range of optional covers catered to specific activities. You can also increase the cover provided on specific belongings. Refer to the Product Disclosure Statement (PDS) for a detailed list of the terms, conditions, exclusions, sub-limits and/or limits that apply.
Recent data from the ICA & DFAT Travel Insurance & Smartraveller Survey 2022 indicates that more than half of those who intend to travel with insurance (57%) are at risk of travelling underinsured. In the same survey, just under half (43%) did not indicate that ‘activities covered’ will be a consideration for them when evaluating insurance options.
Travelling certainly involves a lot of decision making, and Dr Geoff suggests answering some important questions before travelling to ensure you get the right amount of cover for your trip.
Where are you going?
While countries such as the USA are popular destinations, it’s important for travellers to have an idea on what it costs to seek medical treatment at their destination.
Dr Ramin says, “Allianz receives many claims that are not related to accidents from participating in risky activities, but rather from unexpected medical conditions that can escalate into life threatening conditions.
He continues, “a couple of recent patients we assisted with started with a sore throat and a rash and escalated into life threatening conditions. Both resulted in medical bills into the tens of thousands of dollars. Travellers, especially younger travellers, would struggle to afford to pay this without insurance”.
Dr Ramin reminds travellers that you don’t need to be engaging in risky activities to require emergency medical assistance.
What will you be doing, (or tempted to do) when you get there?
While falling is commonplace on the ski slopes, no one expects their ski trip will end with a trip to hospital and a hefty medical bill. Like one skier in Whistler whose fall resulted in a broken bone and a $30,000 claim. Ramin reminds travellers to check the Product Disclosure Statement (PDS) for a detailed list of the terms, conditions, exclusions, sub-limits and/or limits that apply before you buy and make sure it includes cover for what you plan to do, including activities like skiing and other adventure activities.
It’s important to consider what you might be tempted to do, too. Even if you aren’t much of a skier, if you’re headed to a destination like Whistler for a dreamy white Christmas, it’s easy to be drawn into a spot of tobogganing. Remember, if you have an accident while doing it, you won’t be covered without the right level of insurance. Adding a Snow Pack may assist with any bills should the worst happen.
What are you taking with you?
If it happens to be a holiday where you’re taking valuable items, you may want to consider increasing the coverable amount for that item. For example, your camera may be worth $4,000, but is only covered up to a value of $3,000. With Allianz’s comprehensive travel insurance plan, you have the option to increase the potential cover on that item up to $4,500 should you accidentally damage it, or if it is stolen.
Do you have any medical conditions that you would like to cover?
No one plans for their medical conditions to flare up while they’re away, but things happen. So it’s important you, and anyone else on the policy, declare all pre-existing medical conditions by being as open and honest as you possibly can when you’re purchasing your insurance.
Depending on the nature of the condition, some may be covered at an additional cost and others at no extra cost. If you end up injured or sick from an undisclosed pre-existing condition, you could be footing the hospital costs. That could mean hundreds of thousands of dollars for you and your family.
Some countries have agreements in place where Australians can get access to publicly funded, medically necessary care. But even those have specific conditions that you must meet and do not necessarily cover all costs.
It’s important to remember to avoid the one size fits all approach when considering additional travel insurance coverage. Consider your situation and plan as though sickness could happen to you.
The Allianz Product Disclosure Statement covers all the important details to help you better understand travel insurance so read it carefully to understand the extent of cover and limitations that apply. Optional covers including Increased Item Limits Cover, the Snow Pack, Adventure Pack, and Cruise Pack list the activities that can be covered under each one.
To find the best Allianz travel insurance product for your trip, visit the Allianz Travel Insurance website.
Travel Insurance is issued and managed by AWP Australia Pty Ltd ABN 52 097 227 177 AFS Licence No. 245631, trading as Allianz Global Assistance (AGA) as agent of the insurer Allianz Australia Insurance Limited ABN 15 000 122 850 AFS Licence No. 234708 (Allianz). Travel Insurance is underwritten by the insurer Allianz. Conditions, terms, limits and exclusions apply. We do not provide advice based on any consideration of your objectives, financial situation or needs. Before making a decision, please consider the Product Disclosure Statement and Target Market Determination available at www.allianz.com.au. If you purchase this insurance, AGA will receive a commission that is a percentage of the premium. Ask us for more details before we provide you with any services on this product.