Sydney, Nov 12: A concerning number of Australians are neglecting travel insurance when heading overseas, according to new research by Finder, Australia’s leading comparison website.
A survey of 1,049 respondents revealed that 64 per cent of Australians have traveled without cover, putting themselves at risk if things go wrong abroad.
Finder’s survey found that almost one in three Australians (31 per cent), equivalent to nearly 6.5 million people, skipped travel insurance due to the cost.
Additionally, 11 per cent didn’t take out cover because they assumed nothing bad would happen to them, while 10 per cent were unsure what travel insurance even covered.
Seven per cent said organizing travel insurance was too complicated, and 5 per cent admitted they simply forgot to take out a policy.
Finder’s travel insurance expert, Angus Kidman, highlighted the risks: “Cutting corners on travel insurance is really risky; without proper coverage, an emergency abroad can seriously ruin your finances. Some people naively believe nothing bad will ever happen to them – that kind of toxic positivity can easily come back to bite you.”
Kidman pointed out that medical emergencies during travel can quickly escalate in cost without insurance.
“An unexpected injury or illness overseas can easily result in tens of thousands of dollars in medical bills,” he added.
“No one thinks anything bad will happen to them, but it’s better to be safe than sorry.”
Kidman also advised that if travelers feel they can’t afford insurance, they should reconsider traveling at all.
“Travel insurance is vital, especially if you’re unable to cover an unexpected event, such as a medical emergency, lost valuables, or flight cancellations. If cost is a concern, compare multiple policies to find adequate coverage at a rate you can afford,” he suggested.
Finder’s data also shows that 13 per cent of respondents rely on credit card-provided travel insurance instead of purchasing additional cover.
The survey, conducted in July 2024, is part of Finder’s ongoing Consumer Sentiment Tracker, a nationally representative study with over 60,000 respondents operated by Qualtrics.
The survey has run monthly since May 2019.
Key Coverage Areas in Travel Insurance:
- Medical Costs: Most policies offer unlimited medical expense cover and 24/7 emergency assistance.
- COVID-19 Cover: Up to $5,000 toward cancellation or rearrangement costs, plus coverage for COVID-related medical expenses.
- Flight Cancellations: Coverage for alternative flights and accommodation if trips are disrupted.
- Lost Luggage: Compensation of around $250 a day if luggage is delayed, with coverage for stolen or damaged items.
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