One of the biggest issues concerning international travel is questions around travel insurance and data from Finder revealed that 77 per cent of Australians are still worried about booking that overseas holiday.
Kate Brown, Finder’s insurance expert, said while you can’t get yourself covered for everything, there are now lots of companies offering comprehensive plans.
“Travel insurance if you go overseas is always necessary and there’s a number of insurance companies now that are covering some COVID-related cover. There’s definitely limitations but people think there maybe is no coverage, but there absolutely is.”
Patrea and Ed Stuttard are avid cruisers and after two years of Australia’s cruise ban, they decided to take matters into their own hands. The couple booked back-to-back voyages with Carnival Cruise Line and are on their fourth of six cruises.
“We’ve had such an amazing time on board. The Carnival crew have welcomed us so warmly. Highlights so far, would be our camel ride along the beach in Cabo San Lucas [in Mexico], and I’m sure for Ed he could also add scuba diving across the San Andreas Fault and also in Cabo.”
As far as the logistics of jetting off and hopping on cruises abroad in this climate, it’s been nearly all smooth sailing. The couple didn’t experience too many difficulties with restrictions and rules but had a slightly more complicated time than usual securing insurance.
“Travel insurance was our biggest hurdle and we wouldn’t book any cruises until we had secured this,” said Ms Stuttard.
“There’s companies out there that will insure for contracting Covid if you’re doing a land-based tour but didn’t cover you if you contract it on a ship. We obviously found a company, 1Cover, then we started booking. Since we’ve been away, there are more companies that offer good cruise cover.”
How much does it cost?
The price of your premium will depend on changing world circumstances, as well as where you’re going, for how long and when you’re travelling. For an estimate, the following quotes were given for a two-week trip to Italy at the start of June 2022: Cover-More $180, or $207 for its premium insurance; Allianz $203; 1Cover $244; Medibank $308.55; Qantas $430 and NIB $435.
Should you buy insurance directly from an airline?
Sometimes the easiest way to grab your cover might be to simply tick the “yes, I want insurance” box while booking your flight, however, it deserves a little more thought.
For example, Qantas, Virgin and Jetstar don’t offer cover for additional costs and rescheduling associated with their own airline cancelling, delaying or rescheduling a flight.
Choice also reports that insurance purchased online as an add-on with your flight can cost up to 3.5 times more than buying the same coverage directly from the insurance provider.
What you are never covered for?
The unfortunate reality of the current travel insurance climate is that there’s two issues you won’t find cover for – border closures and snap lockdowns. Insurance experts explain that it is simply being too difficult to put a price on associated costs and if it was to be included, premiums would be too high to attract customers.
This unfortunately means border closures and snap lockdowns suddenly occurring will be an inevitable risk of any international trip. The discovery of the Omicron variant did serve as a sharp reminder of this possibility as many countries across the globe either shut their borders or tightened travel restrictions.
You can purchase insurance policies that will reduce the risk of added costs to your travel significantly, but unfortunately there is no current insurance to cover the costs incurred for travellers by sudden border closures.
Your cover options
1Cover
* All medical costs if diagnosed with COVID-19, including overseas medical treatment, ambulance transportation and repatriation back to Australia.
* 1Cover will not cover any cancellation costs or additional costs incurred because of COVID-19.
Allianz
* If you choose to cancel your trip due to border closures or mandatory quarantine, you can get a refund on the premium for your insurance policy.
* Overseas emergency assistance including medical costs.
* Cancellation for the non-refundable portion of unused travel and accommodation, reasonable costs of rescheduling your journey.
* Additional expenses due to you or your travel companions incapacity, emergency travel and accommodation, and a return to Australia due to your own illness or a relative’s death or hospital admission.
* You can get medical, evacuation and cabin confinement cover while cruising.
Cover-More
* Overseas medical expenses due to contracting COVID-19.
* Additional expenses such as returning of rental vehicles, additional kennel or cattery boarding fees, etc.
* If a relative or your business partner not travelling with you becomes sick.
* Cancellation and amendment costs if you are diagnosed with COVID-19 prior to departure, if a non-travelling relative or business partner is diagnosed, if you are a healthcare worker who has their leave revoked, or if you are diagnosed with COVID-19 during your trip.
Medibank
* Medical treatment for COVID-19 (unless you contract it on a multi-night cruise).
* Cancellation and amendment fees if you are diagnosed with COVID-19 prior to departure, if you have a non-travelling business partner or relative contract a life-threatening level of Covid and you need to return, if you are an essential healthcare worker whose leave is revoked, or if you are diagnosed with Covid on your trip.
NIB
* All medical expenses if diagnosed with COVID-19, including medical evacuation and repatriation.
* Cover for COVID-19 travel costs, including cover for quarantine expenses and trip cancellations if diagnosed with the virus.
Qantas
* If you or are a member of your travelling party are diagnosed with COVID, you are covered for the non-refundable portion of your prepaid travel arrangements.
* If a close relative or business partner in Australia is hospitalized or dies due to COVID and you need to cancel your trip.
* If you are a healthcare worker and your leave is revoked.
* If your pre-booked accommodation is closed for cleaning for a confirmed COVID case, you are covered for reasonable closets and additional travel.
* If you are denied scheduled public transport due to being suspected of being infected with COVID you are covered for additional travel.
* If you or anyone in your travelling party is confined to compulsory quarantine as a result of your or their diagnosis, you will be covered for additional travel, meals and accommodation.
Virgin
* Does not currently offer international travel insurance that covers for COVID-19, except for holidays to New Zealand.