To help you make the most of your travel insurance and avoid any pitfalls, Southern Cross Travel Insurance (SCTI) has compiled a list of the most common mistakes customers make when purchasing travel insurance. Understanding these factors will help you avoid unpleasant surprises and ensure that you are fully covered in various scenarios.
At SCTI, we will do our very best to ensure we pay claims where possible. Between January and September this year we’ve already paid over $7.5 million in claims from Australian customers,” says Jo McCauley, CEO at SCTI. “However, it’s important to be aware of the details to avoid common mistakes that can lead to denied claims or inadequate coverage.”
- Alcohol Consumption: Know Your Limits
It’s important to note that travel insurance policies often have exclusions regarding alcohol consumption. If alcohol is found to have contributed to an event resulting in a claim, such as a fall or lost phone, the claim may not be payable. Insurers will consider supporting information, including medical reports and occasionally supplementary information like witness statements and bar bills, to further understand the causal impact.We know that most travellers are taking a cautious approach to a tipple on holiday. Exercise caution when sipping that cocktail poolside, warming up with an après-ski tipple, or socialising with a local IPA, and you’ll be able to enjoy your next adventure, worry-free. Always read the fine print of your policy to understand how alcohol consumption can impact your coverage.
- Personal Possessions: Secure Your Belongings
Leaving your personal possessions unattended on the beach or in other public places can lead to your claim being rejected. Travel insurance typically requires that you take ‘reasonable care’ of your belongings. Make sure to secure your valuables in a safe place to avoid theft and potential claim issues.From January to September 2024, SCTI has seen 746 claims paid out to Australian travellers who have lost their possessions, 230 of those included a lost mobile phone.
- Moped and Scooter Travel: Ensure Proper Coverage
Riding a moped or scooter can be a fun and convenient way to explore your destination, but it can also be risky if you haven’t added this activity to your travel insurance policy. Many standard policies do not cover moped or scooter travel unless specifically stated. Ensure you have the appropriate coverage before renting a moped to avoid uncovered accidents or injuries. Generally, claims will only be covered if you meet the policy conditions, such as having the appropriate licence, choosing rides where the engine size stays within your policy limits, and wearing a helmet.Between January and September 2024, SCTI has seen an average claim cost of $8,101 for Australians involved in moped and scooter-related incidents, with the highest claim paid out at $83,748.
- Skiing and Snowboarding: Stick to the Trails
Adventurous activities like skiing and snowboarding can be exhilarating. Always ensure you’ve selected the appropriate policy add-ons to enjoy the slopes without stress. Make sure you check the fine print as certain snowy activities, including venturing off-piste, may not be covered.Between January and September 2024, SCTI has paid out 91 claims to Australians who have had incidents on the slopes this year, with the average claim cost $1,866 and the highest claim paid out being $28,584 for a skiing accident involving a 62-year-old fracturing their leg after losing their balance.
- Pre-Existing Conditions: Disclose and Confirm
Failing to disclose pre-existing medical conditions (PECs) can result in denied claims. It is crucial to inform your insurer about any health issues before purchasing your policy. Some insurers may offer coverage for PECs at an additional cost, providing peace of mind and financial protection during your travels.Between January and September 2024, the most common PECs declared by SCTI customers are:
● High blood pressure – 11%
● Asthma – 5%
● Anxiety – 4%
● Hypertension – 4%
● Diabetes type 2 – 3%
● Depression – 2% - Travelling with Equipment: Protect Your Gear
Whether you’re a photographer with expensive camera equipment or a musician travelling with instruments, ensure your travel insurance covers these items. Standard policies may have limitations on high-value items, so it’s essential to check and add extra coverage if necessary to protect your gear from loss, theft, or damage.Between January and September 2024, SCTI has approved 588 claims from Aussie travellers who have lost and damaged electronic equipment, with the average claim cost $536 and the highest claim paid out being $3,000.
- Medical Emergencies: Understand Your Coverage
Medical emergencies can be costly and stressful, especially when travelling abroad. Ensure your travel insurance policy includes comprehensive medical coverage, including emergency medical evacuation and repatriation. Knowing the extent of your medical coverage can save you and your family from significant financial burdens and provide crucial support in emergencies.Between January and September 2024, the average cost of SCTI Emergency Assistance claims has already reached at $12,459, with the highest claim paid at $359,105 after a poolside slip led to broken ribs and an Air Ambulance back to Australia.
- Trip Cancellations and Interruptions: Know the Terms
Trip cancellations and interruptions due to unforeseen events such as illness, severe weather, or family emergencies can disrupt your travel plans. It’s essential to understand the circumstances under which your travel insurance covers cancellations and interruptions. Check if your policy covers non-refundable expenses and any penalties associated with changing your travel plans.Between January and September 2024, SCTI has paid out 974 cancellation claims for
international trips this year, with the average cost $1,613. - Rental Car Excess: Check Your Policy
If you plan to rent a car during your trip, check if your travel insurance policy covers the rental car excess. Remember, being insured for the rental vehicle excess does not mean you are covered for the total value of the vehicle, or the total cost of any damage done to it. It is likely that the cost of your travel insurance policy is less than any rental car excess you’d have to pay if you were uninsured.Several countries require Australians to hold an international driving permit (IDP), as well as a valid Australian licence, to drive overseas. These requirements can differ from country to country, state to state and even from rental company to rental company. If you’re renting a car in the United States for example, you’ll need a valid driver licence, as well as an IDP in some states. Even if you’re travelling in a US state that doesn’t require an IDP, your rental company may require one, so it’s always best to check.
- Adventure and Extreme Sports: Confirm Coverage
If your travels include adventure sports like bungee jumping or white water rafting ensure your travel insurance covers these activities. Generally, you’ll only be covered if you use a licensed operator, follow their safety instructions and wear all required safety equipment. Standard policies often exclude extreme sports and you may need specialist insurance coverage such as altitude specific insurance if trekking in Nepal.For more information, visit Southern Cross Travel Insurance.
