Everything you need to know about buying travel insurance

Why you might need it, what it will cover, and how to get the best deal.

a camera, suitcase, moped, umbrella and ski boots on a teal background

Uta Mihm @umihm

Jodi Bird @jodirbird

Last updated: 15 February 2023

Travel insurance is an essential part of planning a holiday, but who wants to study insurance small print when you could be poring over maps and goading jealous friends with travel brochures?

This guide to getting the right travel insurance will have you back in holiday mode in no time.

In the helpful case studies you'll find throughout this guide, we've changed some names and details to protect privacy.

On this page:

Why get travel insurance?
International travel insurance and COVID-19
How to get travel insurance
5 things to consider before you buy
How to save money on travel insurance
How to navigate travel insurance fine print
What you're covered for and what the catches are
How to complain about an insurer

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Why get travel insurance?

If you're leaving Australia, travel insurance is just as essential as a passport.

Holidays don't always go as planned

Medical expenses are the number one reason to get insurance, but sometimes other things can go wrong, such as trip cancellations, delays, lost luggage or even the big stuff like natural disasters and pandemics.

If you end up out of pocket because of these things, insurance can make up for that.

The Australian government won't pay your medical bills

The Consular Services Charter describes what the government can and can't do to help Australians overseas. In an emergency, the Australian government can only help so much.

68% of travellers mistakenly believe the Australian government would ensure they get medical treatment if they need it overseas, and 43% believe the government would pay their medical bills.

If you end up injured or sick while overseas, you'll be footing the hospital bill and the cost of flying home. If you're really unlucky, that could cost you or your family hundreds of thousands of dollars.

Some countries won't let you in if you don't have insurance

Singapore, the UAE and Thailand all require you to have travel insurance. Not to mention all 26 European countries in the Schengen Area if you're applying for a visa to visit.

Read the Smartraveller travel advice for information about your destination.

Still need convincing?

Research by Smartraveller found that one in four Australian travellers experienced an insurable event on their last overseas trip.

Most common insurable events

Flight or tour cancelled
Flight delayed more than 12 hours
Received medical treatment
Lost, damaged or stolen luggage
Missed a connecting flight
Lost, damaged or stolen cash or personal items
Forced to cancel trip before departure

Travel insurance for countries with reciprocal healthcare arrangements

Australia has reciprocal healthcare agreements with several countries: Belgium, Finland, Italy, Malta, the Netherlands, New Zealand, Norway, the Republic of Ireland, Slovenia, Sweden and the United Kingdom. If you have Medicare, you can get subsidised treatment for essential services only in these countries, which often leads people to ask whether they still need travel insurance.

The answer is yes, for the following reasons:

You're usually only covered for urgent care that can't wait until you get home.
If you're very ill, travel insurance can pay for a medical escort to bring you home to Australia.
You still may have to pay fees for treatment and medication. For example, in New Zealand reciprocal health care doesn't cover you for free or subsidised care by a general practitioner or ambulance.
Travel insurance can cover you for cancellations, delays, stolen items and more.

Remember to take your Medicare card with you. You'll need it, along with your passport, to prove you're eligible for reciprocal health care. For more information, visit servicesaustralia.gov.au.

Do you need domestic travel insurance?

Most of us already have medical cover at home, be it Medicare or private health insurance or both, but there are a few reasons to consider domestic travel insurance.

Cancellation: If you've spent a lot on your holiday, then it's not too much extra to buy travel insurance in case of the unforeseen.
Baggage cover: If you're travelling with valuables, consider whether you want them covered for theft, loss or damage.
Car hire excess: You can save money using travel insurance to cover your collision damage excess, rather than paying the car hire company's extra charge.

International travel insurance and COVID-19

Many travel insurers now offer limited cover for COVID-19, but the available cover varies quite a lot.

Over 90% of travellers will look for insurance that covers them for cancellation and medical expenses caused by COVID-19.

Some policies only cover medical and repatriation costs if you get COVID-19 overseas, while other policies provide limited cover for cancellation costs in addition to medical and repatriation costs.

You should always check the details of your insurance coverage, particularly how it applies to COVID-19 and travel disruptions.

If you're planning to go on a cruise, be extra careful. Some travel insurers may not offer COVID-19 cover for multi-night cruises, or they may restrict the cover provided on cruises.

Also, don't rely on the travel insurance on your credit card unless you check it closely – it may not cover claims related to COVID-19.

There are cooling-off periods for COVID-19 cancellation cover, so it's best to buy your travel insurance at the same time as you book your trip. Some insurers may only cover cancellation if you test positive to COVID-19 and the policy was purchased more than 21 days before your scheduled departure date.

Make your travel plans COVID-safe

You need to be prepared for your travel plans to be interrupted at short notice. As travel insurance may not protect you from government border closures, general lockdowns or quarantine requirements in your destination country, the key is to book only with providers that allow you flexibility should things change.

Check the rules for travelling to your destination. For example, are there any entry requirements? What are the vaccination requirements? And what type of travel insurance do you need?
Read the terms and conditions of your airline, accommodation and travel tours before you book. Will they refund you if you can't travel due to COVID-19? If they only offer a reschedule or a credit, will you be in a position to redeem the credit in future?
You can book flexible tickets for flights but be aware you usually have to pay the difference between the prices for the tickets you bought and the new tickets. So changing your flight dates at short notice can be very expensive.
If you book through a travel agent or booking site, what are their terms and conditions? Will they refund you or provide a credit? Are there cancellation fees?
If you pay by credit or debit card (and you selected 'credit' when you paid), you may have access to credit card chargebacks if something goes wrong.
Keep on top of the latest travel advice and requirements at smartraveller.gov.au. Travel restrictions can change at short notice.
If you do have to cancel, your travel insurer will ask you to claim what you can back from travel providers first. Read our advice on how to get your money back on travel cancellations and ask your travel insurer if you can get a refund or partial refund of your travel insurance premium.

How to get travel insurance

Where

You can buy travel insurance from a travel insurer, travel agent, insurance broker, credit card provider, or even from your health, home or car insurer.

How

You can buy travel insurance online (direct from the insurer's website, from a comparison site or through an airline booking site), over the counter or over the phone.

When

Buy travel insurance as soon as you know your travel dates. That way you're covered if your trip is cancelled before you even leave or if you're unable to travel at all.

What

You can certainly buy travel insurance quicker than it will take you to read this guide, but do you know what you'll be covered for? Will you be covered if you trip over after having a drink? If you crash your scooter in Thailand? If you lose your wallet during a stopover? If you need to isolate because you contract COVID-19?

There are a lot of 'what ifs' to consider, depending on where you're going and what you'll be doing, so it's worth reading the product disclosure statement (PDS) first to make sure you'll be covered.

If you're leaving Australia, travel insurance is just as essential as a passport.

5 things to consider before you buy

1. Where you're going

86% of travellers say they're more cautious after the COVID-19 pandemic about travelling to places where it could prove harder to return home in a crisis.

The level of cover and the cost of travel insurance can vary depending on the region you're travelling to, and some risks may be of greater concern than others.

Not all policies cover you for changing your plans due to a riot or civil commotion, for example, and not all travel insurance policies cover COVID-19 and other pandemics or epidemics such as SARS, so consider the risk levels in the country you're visiting.

Travel insurance also may not be available for countries with travel alerts. Look up your destination on smartraveller.gov.au and make sure you're aware of any risks or safety advice.

And make sure you buy a policy that covers you for every country you're travelling to or transiting through. If you're going to Europe via a one-night stopover in the US, then get cover for the US and Europe. Usually a worldwide policy will cover this.

Destinations vs regions

Insurers sometimes apply policies to regions rather than having a policy for each destination.

Asia Pacific: Destinations such as New Zealand, Bali, Fiji and Papua New Guinea.
Asia: Destinations such as India, Indonesia, Thailand, Singapore and Malaysia.
Europe: Destinations such as the United Kingdom, Ireland and Western Europe.
Worldwide: All of the above as well as regions such as North America, South America, Japan and Africa.

These definitions differ for each insurer. For example, several insurers cover travel to Bali under their Asia Pacific policy but not to the rest of Indonesia, while some will only cover travel to Bali under their Asian region travel policy.

2. How long you're going for

Just a quick trip?

Simply buy a standalone travel insurance policy for a set number of days.

Travel often?

Consider an annual multi-trip policy or a credit card with complimentary travel insurance, but make sure it gives you the cover you need.

Note: Annual multi-trip policies and credit card policies can restrict the length of each trip you take – anywhere from 15 to 365 days depending on your policy. Some allow you to pay for extra days.

3. What you're going to do there

Cruising the open road on a moped? Carving up the ski slopes? Partying at a wedding? These things aren't necessarily included in a travel insurance policy.

Scan the insurer's list of included activities and those that you'll have to pay extra for. And take it easy on the grog – if your alcohol or drug intake is the cause of an adverse event, it won't be covered by your policy.

4. Taking valuable items

Do you need cover for a digital SLR camera or an expensive tablet or laptop? Cover for such valuables can vary from a few hundred dollars to thousands, and higher cover will often mean a higher premium.

Consider adding cover for portable valuables to your home insurance policy instead, but check on the excess and if the policy will cover you worldwide and not just in Australia.

Policies also vary when it comes to how they cover valuable items. Valuables in your check-in luggage often aren't covered, while cover for baggage stored in your hire car is inconsistent. And baggage left unattended is never covered, which can include a bag that is stolen from the seat beside you in a restaurant while you're looking the other way.

Make sure you have receipts for your valuables as travel insurance will not pay if you can't prove you own them.

5. Medical conditions

If you have a medical condition that existed before you bought your policy, it may not be covered.

This can range from something as common as allergies or asthma through to diabetes, heart conditions and knee replacements.

If you're not sure, contact the insurer to ask whether they'll cover your condition automatically or whether you need to do an assessment.

Case study: The Massoud family was holidaying in Singapore when 13-year-old Nazreen had a recurrence of severe bronchitis, which she'd had in Australia before their trip. The family's travel insurer refused to pay any hospital bills as Nazreen's bronchitis was a pre-existing medical condition. As a result, the Massouds had to ask their friends to transfer the $17,000 they needed to cover Nazreen's hospital expenses, additional accommodation and the cost of changing flights.

How to save money on travel insurance

It's important to compare policies for cost and cover. Some travel insurance premiums increased by as much as 30% between March and June 2022.

1. Buy early

62% of people travelling overseas who buy insurance do so on or before the day of booking travel.

The further out from your departure date that you buy travel insurance, the more you're likely to pay for it, but you'll be covered from the moment you buy your policy.

For example, if you buy insurance two months before you fly, you effectively have cheap cover for any events that affect your travel plans in those two months.

If you pay for your trip in full six months in advance, but you only buy an insurance policy two weeks before you depart, you may not be covered for any cancellation costs if you contract COVID-19.

Left it until the last minute, or even later?

Only a few insurers let you buy insurance once you're already overseas (look for the 'Have you already left Australia?' checkbox when viewing policy options).

2. Buy online

While not all policies offer online discounts, plenty do. Make sure you understand the policy and what it covers. Sometimes (but not always) a reduced price may mean reduced cover.

CHOICE tip: Check asic.gov.au/afslicensing to find out whether the agent has an Australian financial services (AFS) licence or is an authorised representative of a licence-holder. Take the usual precautions when giving your credit card and other details over the internet.

3. Member discounts

Does your health, car or home insurance provider also sell travel insurance? Some companies give 10–15% discounts to members.

4. Shop around

Trying to negotiate with a website probably won't get you a better price, but if you're buying over the phone or through a travel agent, give it a go.

Travel agents pocket a commission when they sell you insurance, so if you find a better deal elsewhere, ask them if they can beat it.

5. Compromise on cover

While good medical cover is always essential, you could save money on your premium by choosing a policy with lower or variable cover for cancellation, delays and baggage, particularly if you aren't spending big on your holiday or taking expensive items with you.

6. Use your credit card

Some credit cards come with 'free' travel insurance when you use them to buy a ticket or to pay for other travel expenses (we say 'free' because you'll pay a premium in fees for the card itself).

This type of insurance can sometimes be a money-saver, but make sure it gives you the cover you need.

How to navigate travel insurance fine print

You're about to click 'buy', so you just tick the "I acknowledge I've read the product disclosure statement" checkbox and bon voyage…

But wait. You know what they say about checking the small print? In the insurance world, that small print is contained in the product disclosure statement, or PDS (that thing you said you'd read).

How to read a PDS

There are hundreds of policies out there and if you tried to read all the paperwork that comes with each, you'd have to extend your holiday just to recover.

If you don't have time to read the whole PDS, at least look for the following:

The table of benefits is an overall summary of your cover.
The policy cover section is essential reading and is generally split into 'what we will pay' and 'what we won't pay'.
General exclusions are also essential reading; these are events that aren't covered by any section of the policy.
Pre-existing conditions can remind you of forgotten ailments and are essential reading for anyone with any kind of medical condition, no matter how mild.
The word definition table might contain a few surprises – a good place to check on the definition of a 'relative' or a 'moped', for example.
The claims section lists further points to be aware of (e.g. it's a good idea not to admit fault or liability in the case of an accident) and the paperwork you may need to collect while you're away if you need to make a claim, such as police reports.
COVID-19 cover section – many policies have a special section listing medical, cancellation and other cover available for COVID-19.
The 24-hour emergency assistance contact number (write it down and keep it handy).

Misunderstood terms and conditions

The list of travel insurance disputes taken to the Australian Financial Complaints Authority (AFCA) reveals a battlefield of unread or misinterpreted terms and conditions. Between 1 July 2020 and 30 June 2021, AFCA received more than 2000 travel insurance complaints related to COVID-19.

percentage of people who have read a travel insurance product disclosure statement (PDS)

What you're covered for and what the catches are

Medical cover is the number one reason to buy international travel insurance. Look for the insurer's benefits table, usually on the quotes screen online or near the front of their PDS for a quick overview of what they're offering. Most policies have an 'unlimited' sum insured.

Travel insurance only covers overseas costs. So if you break a leg in Bali, for example, your insurer will likely pay your hospital fees, but they won't cover your ongoing physiotherapy once you're back home.

Pre-existing conditions

Some insurers don't cover pre-existing conditions at all. Some will only cover pre-existing conditions with an extra fee and sometimes a medical assessment. Some automatically cover pre-existing conditions listed in their PDS, although few will cover mental illnesses such as depression or anxiety.

Insurers exclude cover for certain pre-existing medical conditions and generally don't provide cover for any illnesses or incidents that arise from these. This includes terminal illness or any illness that shortens your life expectancy as well as organ transplants.

Minor pre-existing medical conditions such as asthma, hypertension, diabetes, epilepsy, osteopenia and more are usually covered if:

the condition has been stable for more than 12 months
there is no planned surgery
you have not received treatment in the past 12 months.

Pre-existing condition spoiling your holiday plans?

findaninsurer.com.au lists insurers that may provide cover for pre-existing conditions.
Still having trouble finding cover? Enlist the help of an insurance broker.

Examples of conditions that usually need to be assessed before getting cover are coronary problems, lung disease, epilepsy, stroke or any surgeries in the past two years.

If in doubt, declare your condition to your insurer.

A disability shouldn't prevent you from buying travel insurance, but it might make finding a good policy trickier and more expensive.

Is a disability a pre-existing condition?

It depends on the disability and the insurer. Many insurers will automatically cover travellers with limited mobility, cognitive impairments or vision/hearing impairments. But in some cases this cover may come at an extra cost.

Check with the insurer, as some conditions will need to be assessed on a case-by-case basis.

Having trouble getting cover?

Under the Disability Discrimination Act, insurers must assess the actual risks, rather than make assumptions about disabilities. If you're having trouble getting insurance, a letter from a medical professional might help, particularly if they can state that your condition is under control and you're not likely to need medical or hospital treatment while on your trip.

Cover for your equipment

If you're travelling with a wheelchair, mobility aid or hearing aid, you'll need to insure that as well. Check single item limits, which are usually between $750 and $1000 per item. If you have a piece of medical equipment that exceeds this, you'll need to specify it and insure it separately.

Many insurance policies exclude hearing aids, so check the fine print and take out extra insurance if necessary.

Cover for your carer

If you're travelling with a carer, it's a good idea to be on the same policy in case travel plans change for either of you – that way you're both covered. If you have a paid support worker, ask your insurer whether they'll cover the cost of a replacement support worker, should yours be unable to travel.

If you're travelling while pregnant, check the following:

Are you covered for pregnancy complications? Some insurers don't cover pregnancy at all.
Up until which stage of pregnancy? Pregnancy complications are usually only covered up until a certain stage (often between 23 and 32 weeks, depending on the insurer).
Not all insurers will cover childbirth. A premature birth in the US for example, with intensive care and treatment, could end up costing hundreds of thousands of dollars.
Not all insurers will cover IVF pregnancies.
Do you have to pay extra to be covered?
Do you need medical approval to be covered?

Many travel insurers won't provide cover of any kind for hospitalisation, medication or missed travel caused by a mental health condition, whether that's depression, anxiety or a psychotic episode.

Others will provide cover if you declare mental illness as a pre-existing condition and pay a higher premium. Check the PDS carefully; insurers may use different terms to describe the same mental health conditions, giving them wriggle room to deny a claim.

Insurers are highly unlikely to pay a mental health-related claim if they discover it was a pre-existing condition that you didn't declare. The trouble is, an insurer might view a single visit to a therapist many years ago because of work stress, for example, as a pre-existing mental health condition.

Mental health and travel insurance have been a contentious issue for consumer rights groups including CHOICE – and it's one that's still evolving from a legal standpoint.

Most policies have an age limit, ranging right up to the 100-year-old seasoned adventurer. There are quite a few catches for older travellers, though.

Higher premiums: Insurers often charge older travellers more, and in some cases 'older' can be as young as 50.
Higher excess: Travellers as young as 60 but more commonly over 80 may be subject to a higher excess because of their age. The normal excess of around $100–200 is often increased to an excess of $2000–3000 for travellers 80 years and over for claims that relate to injury or illness.
Restricted conditions: 'Subject to medical assessment', 'reduced medical cover limits', 'reduced travel time', 'policy to be purchased 6 months in advance' – all of these conditions can apply to travellers over a certain age.

Case study: A woman in Victoria won a court case against her insurer after they declined her claim for the cancellation of an overseas trip due to depression. "We took out the travel insurance well in advance of the travel, and well before my depression. I was certainly under the impression that I was covered," she told CHOICE. "They just sent back a letter that said no."

But her win (she was awarded $4292 for economic loss and a further $15,000 for non-economic loss) was an isolated ruling. There are still debates about whether general exclusions for mental health claims are legal.

You'll probably want to be covered if your travel plans are cancelled for any reason, but be aware that insurers could come up with excuses to avoid paying up.

Terrorism: Most insurers cover medical expenses but very few cover cancellation expenses in the event of terrorism.
Pandemic or epidemic: Commonly excluded.
Military action: Commonly excluded.
Natural disaster: Covered more often than not.
Travel provider/agent insolvency: Commonly excluded.
Cancellation due to travel provider's fault: Insurers commonly exclude cover for delays or rescheduling caused by the transport provider. As John found out:

A scheduled train service was delayed, seriously diverted then terminated so we missed our flight home by several hours. Re-booking fees, emergency accommodation and related fees cost us $1000–1500 but they wouldn't pay the claim – not in policy!

What are 'unforeseen circumstances'?

When an insurer refers to cover for 'unforeseen circumstances', it means something that wasn't publicised in the media or official government websites when you bought the policy.

Smartraveller, managed by the Department of Foreign Affairs and Trade (DFAT), assigns an overall advice level to more than 175 destinations.

Check this advice when you buy your travel insurance. If an event became known before you bought the policy, you're not covered.

The advice levels are:

Level 1 – Exercise normal safety precautions (covered).
Level 2 – Exercise a high degree of caution (covered).
Level 3 – Reconsider your need to travel (check).
Level 4 – Do not travel (usually not covered).

Travel warnings can work in your favour. If an insurer excludes cover for an event, they may still cover you to change your plans in response to updated advice from Smartraveller.

But beware when travelling to a destination that has a 'Do not travel' warning. Most standard policies won't cover you for 'Do not travel' destinations, including for COVID-19.

Case study: A week after a volcanic eruption made world news, Sameer booked a trip to Bali. He assumed the emergency would be over by the time he was due to fly a month later. Unfortunately, the volcano continued to erupt and Sameer's flight was cancelled. His insurer declined his claim because he'd bought the flight and insurance after Smartraveller issued a travel alert about the volcanic eruption, and after it had been in the news.

Delays can be expensive, particularly if you have to pay for alternative transport or accommodation. And those extra expenses won't always be covered.

Transport delay is only covered after a certain number of hours, usually six, but you may have to wait as long as 12 hours before your cover kicks in.
Cover limits for transport delay are typically lower than other cover limits and are often limited per 24-hour period.
Insurers often exclude cover for rescheduling caused by the transport provider, but some may cover additional accommodation and travel expenses in this scenario for travellers who are en route.

Baggage cover varies widely, with policies in our travel insurance comparison ranging from $0 up to $30,000. If you're not carrying expensive items, you could save on your premium by selecting a policy that provides less cover.

Individual items are subject to sub-limits ranging from around $250 to as much as $5000.
Higher item limits usually apply for electronic items like laptops, cameras, smartphones and tablets.
You can pay extra to specify items you want extra cover for (insurers are always happy for you to pay extra).
Valuables locked in a car or checked in on an airline, train or bus may not be covered.
Generally any items left unattended may be excluded from cover, so keep your belongings close.

Case study: Jing sat down to try on a pair of shoes in a busy London shoe shop, placing her handbag next to her on the seat. When she got up to leave, she discovered her bag was gone. Her insurer refused to pay up because she had left her bag unattended in a public place.

Lost luggage

If an airline loses your luggage temporarily and doesn't compensate you for that loss, you may be able to claim expenses for clothing, toiletries and other necessities, depending on your policy.
Cover usually only applies to baggage lost for more than 12 hours, though the time limit varies per insurer, as does the level of cover.
Bear in mind that the cost of a toothbrush, deodorant and undies might be less than your policy's excess, in which case there would be no point in making a claim.

If your policy has an excess (a fee that's deductible from your payout), remember that this applies once per claimed event and items below the excess level can't be claimed.

Case study: Angelo and Diane tried to claim $112.20 for meals and drinks when their connecting flight to Hawaii was delayed by eight hours. Although their policy technically covered them for the cost, they were liable for an excess of $250, so their claim was denied.

If you don't feel like paying the 'extra insurance' the car hire company charges, then you can use the collision damage excess cover in your travel insurance. Stick with recognised car rental companies in this case, since this cover only applies if the car hire company already has its own comprehensive insurance.

Do you have the right licence?

Some countries require you to have an international driving permit. If you have an accident while driving on the wrong licence (or breaking that country's law in any other way) you may not be covered.

Cruises aren't automatically included in all travel insurance policies. If you're going on a cruise, make sure you have the right cover.

The Department of Health says: "Cruise ships carry a higher risk for spreading disease compared to other non-essential activities and transport modes. COVID-19, influenza and other infectious diseases such as gastroenteritis spread easily between people living and socialising in close quarters."

Check travel insurance policies to make sure medical cover for COVID-19 is included, as some policies exclude this cover.

Not leaving Australian waters?

You still need insurance. Doctors working on cruise ships won't always have Medicare provider numbers. So if they treat you, you can't claim on Medicare or your private health insurance, even if you're still in Australian waters.

Domestic travel insurance doesn't cover medical costs, so you need either international travel insurance (check that it covers domestic cruises) or a domestic cruise policy.

Case study: Kerry thought she'd done the right thing buying an annual multi-trip international travel insurance policy for a number of upcoming holidays. One of these was a round-trip cruise departing from and returning to Fremantle, WA, with no port stops. When she had to cancel due to ill health, she discovered her policy wouldn't cover her because the trip wasn't considered an international one.

When CHOICE reviews travel insurers, we sort out who covers which sports and adventure activities, such as skiing, ballooning, bungee jumping and scuba diving, to name a few.

But as always with insurance, the PDS may include things that take you by surprise. For example, several insurers we've reviewed will cover canyoning but they won't cover abseiling, often a necessity in canyoning. Other policies in our comparison will cover abseiling, but not into a canyon.

If you're planning on doing anything more daring than lounging by the resort pool, check to make sure you're covered. It's not enough to simply look for the tick next to your chosen activity – you also need to check the definitions in the PDS.

Motorcycles and scooters

Hiring a motorcycle or scooter? Depending on which country you're in you might need a local or international motorcycle licence. You probably won't be covered if you aren't obeying the local law. And even if you are doing the right thing under local law, some policies still won't cover you unless you have a motorcycle licence.

Are you wearing a helmet? Most countries say you need one by law, but that doesn't mean it will be included in your hire. No helmet means no cover (in more ways than one).

Case study: Nhung was injured after she rented a scooter in Thailand only to find out the engine size was not covered by her insurance policy. Most insurers adopt the national standard for the definition of a scooter (moped) – an engine capacity under 50cc. If the engine is bigger than that, it's a motorcycle, and you'll need an Australian motorcycle licence.

Skiing and snowboarding

Some insurers cover skiing, often for an extra premium, but not so many cover skiing off-piste (away from the groomed runs). So, if you're tempted to slide off the beaten path next time you hit the slopes, make sure you have a policy that covers off-piste ski runs (or pay for the optional extra cover).

Otherwise, if you run into a tree and have to be evacuated from the mountains, you may need to think about selling your home to pay for it.

It's worth remembering that travel insurance only covers overseas costs. So if you break a leg while you're abroad, your insurer will likely pay your hospital fees, but they won't cover your ongoing physiotherapy once you're back home.

Case study: Marianna fractured her leg in three places while skiing with her partner and children in Japan. Because the family had bought additional cover for winter sports, they were reimbursed $35,466.28 for medical expenses, additional transport and accommodation, the cost of a nanny to look after the children and business class flights back to Australia.

Cover for overdoing it on vodka and Red Bull and float-tubing down a river in Laos isn't likely to be included in any policy. Insurers simply won't pay for costs arising from you being under the influence of alcohol or drugs (except where taken under the advice of a doctor).

Even one or two drinks could be an excuse for insurers to get out of paying. Read more about travel insurance and alcohol exclusions.

Many policies cover the costs to travel home if one of your relatives dies or becomes sick.

Bear in mind that an insurer's definition of a 'relative' may differ from yours.
Cover usually depends on the age of that relative, so the death of your 84-year-old grandma may not be covered.
Your relatives are subject to the same pre-existing condition exclusions as you, so if your 84-year-old grandma died from a known heart condition, you may not be covered. But if you're concerned, you may be able to apply for your relative's pre-existing condition to be assessed before you buy the policy.
Cover is limited to relatives that live in Australia, or in some cases New Zealand. So if your 84-year-old grandma is in China, you won't be covered to fly there for her funeral.

So you've booked and paid for your holiday through a travel agent, but then the travel agent goes broke. You'll get your money back, right? Not necessarily.

Only a few insurers will cover you for the insolvency of a travel provider, and that includes hotels, airlines and other transport companies that might go broke overnight (remember Ansett?).

There are a few ways to safeguard your hard-earned holiday, though:

Check whether your insurer covers you for insolvency.
Check whether your travel agent has insolvency insurance (this isn't compulsory, so only some will have it).
Pay with your credit card. Some banks allow a 'chargeback' if you pay for something on your credit card and don't end up actually getting it.

CHOICE tip: Don't accept any dodgy contract terms that require you to give up your chargeback rights.

How to complain about an insurer

Australian travellers lodged almost 300,000 insurance claims in 2018–19, the last financial year before COVID-19 travel bans. Almost 90% of those were paid out. The top four reasons for declined claims were:

due to policy exclusions, or not included in the policy conditions
claim amount was below the excess
claim was due to a pre-existing medical condition
claim was for an item that was stolen while it was unattended.

If you've been knocked back on an insurance claim and want to dispute it, here are your options.

Internal dispute resolution

Complain to the insurer first. They'll usually keep you up to date about the progress of your complaint every 10 business days.

Once you've lodged your case and all the supporting information and documents, the insurer has 45 days to complete its internal dispute resolution process.

External dispute resolution

If you aren't happy with the insurer's decision, you can take your complaint to the Australian Financial Complaints Authority (AFCA). They'll handle your case for free.

The AFCA will mediate between you and the insurer to find a resolution.
If mediation is unsuccessful, they may make a preliminary assessment or give a determination straight away on your dispute.
A determination is legally binding on the insurer but not on you.
There's no appeal process with the AFCA.
For more information, visit afca.org.au.

Legal action

If you're unhappy with the AFCA determination, you might want to consider taking legal action against the insurance company.

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