Travelling overseas is almost a rite of passage for young people from all over Australia, and backpacking is a cost-effective way to travel when on a budget. Along with booking your tickets and planning your itinerary, you should think about arranging travel insurance for your trip. Here’s why you need travel insurance and some of the things your policy could cover you for.
WHY DO I NEED TRAVEL INSURANCE?
Every year, tens of thousands of travellers head overseas for holidays, and outbound Sydney backpackers head overseas by the thousands to explore the world. Most of us would probably prefer not to think about it, especially when setting off on an overseas adventure, but unexpected things can happen. You’ll want to have adequate coverage for unforeseen events such as medical emergencies, situations where you might be personally liable, or unexpected circumstances where you need to seek out legal advice.
In these situations, your travel insurance could give you a level of financial security by compensating you for a part or for all of any unexpected costs, where you’re eligible. You might be able to continue with your trip as planned, or at least return home without a large debt burden.
WHAT DOES BACKPACKER INSURANCE COVER?
Overseas medical expenses: Unexpected things can happen, whether you’re planning an outdoor, action-packed adventure or a city-bound, urban journey. Medical treatment can be very expensive if you’re not a citizen of the country. These costs can escalate quickly if you need to stay in a hospital or require specialist equipment. Your travel insurance could cover you for the total cost of any overseas medical treatment you receive.
Trip cancellation:Travel insurance can cover more than just unexpected things that happen after you commence your journey. It can cover the costs associated with trip cancellation; for example, if you need to cancel your trip due to illness or some other occurrence.
Lost luggage: Losing luggage or personal effects is a relatively common occurrence for travellers. You can obtain insurance for any loss, damage, or theft to your personal items when travelling. These costs can be significant if you lose a computer, valuable jewellery or electronic devices.
Personal liability: Travel insurance can include provisions for personal liability. These cover situations where an accident happens and the traveller is held liable for injury or some form of damage to property. This could include the hotel where the traveller is staying.
Legal expenses: Travel insurance can also include provisions for legal expenses, which can be valuable for travellers who find themselves needing legal advice overseas. Legal disputes can happen when you’re travelling, and legal fees can be considerable if you need representation or advice.
Travel delay or abandonment: If your travel transport (such as your flight) is delayed or cancelled, you could have access to cover for the costs of obtaining alternative transport, or you could be able to recover any unrecoverable or non-refundable costs of your trip.
Other unforeseen situations: Travel insurance is clearly a very broad area, covering many different types of unexpected situations. In addition to the above, your travel insurance could offer coverage for stolen or lost cash, costs for missing departure, costs associated with catastrophes, and even things like travel carrier insolvency or search-and-rescue expenses. Having travel insurance on your backpacking adventure affords you an extra level of security, so you can focus on enjoying your trip.