This common travel insurance mistake could cost you - here's how to avoid it
Do you usually book it first, last or not at all?
You're planning a trip overseas, booking your flights, researching your accommodation, locking in tours and a fancy restaurant or two. At what point do you book your travel insurance? First? Last? Not at all?
The Australian Government's Smartraveller says the right insurance is as essential as a passport for travel overseas. And according to experts, when you book it also matters.
CHOICE insurance expert, Jodi Bird, says the best time to obtain travel insurance is right after you've booked your flights and accommodation. "Then you will be covered for cancellation from that point," he says. "If you buy your flights [and travel insurance] today and you fall sick tomorrow and suddenly you can't make it, your travel insurance will cover you." Bird says being covered should you need to cancel your trip is the main reason to buy your insurance soon after you lock in the other major expenses. The other things travel insurance usually covers don't come into effect until you are on your way.
"If you forget and you only get [insurance] the day before you're about to depart, that's better than nothing, especially for international travel insurance," he says. "The most important reason why you're getting that is for medical and evacuation cover when you're travelling overseas."
TravelInsurance.com.au CEO, Shaun McGowan, says booking travel insurance as soon as you book your trip should mean you are covered for certain cancellations, delays or unexpected events before you depart.
"In most cases, your policy will cover the cost of cancellation or rebooking your trip," McGowan says. If you leave it too late, you risk missing out on these "valuable pre-departure benefits", he says.
But timing can impact the cost of travel insurance in other ways, too. McGowan says travel insurers charge based on the total period of cover, from the date you start the policy (which is usually the day you buy it) to the date your trip ends.
So, if you take out a policy a month before your trip, you're paying for that extra month of pre-trip coverage (if you select cancellation coverage), even though you're not travelling yet. But McGowan says that's an extra cost that's worth budgeting for. "While there will typically be a higher premium, the value of that early protection (e.g. if you need to cancel your trip due to illness) can far outweigh the cancellation penalties."
His message? "Don't leave travel insurance to the last minute. If something unexpected goes wrong before your departure, like a medical issue, natural disaster, or cancelled flight, you may not be covered unless you've already taken out a policy. Once a global event (you remember COVID-19) or disaster becomes public knowledge, it's often too late to get cover for it, so timing really is everything."
A spokesperson from the Insurance Council of Australia says a "significant number" of claims result from cancellations made before travellers even depart, "which highlights the value of getting insurance early".
Another reason to buy it early is that it means you're less likely to forget to do it. And for those who travel frequently, annual multi-trip policies may offer better value than booking per trip, as they provide continuous cover for multiple overseas journeys each year, the spokesperson says.
My all-time favourite destination is ... Cornwall. From the giant seagulls to the blustery beaches, Cornish pasties and fishing villages, it stirs something romantic and seafaring in me.
Next on my bucket list is … Mongolia. I want to go somewhere really unique that feels totally foreign and challenges my way of life.
My top travel tip is … Don’t plan too much. Walk the streets and let it happen. And make sure you check out what’s within a few blocks of your hotel - sometimes the best local food is found that way.
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