Failing to pack travel insurance a pricey mistake

When Travelers look to cut costs on their holiday, often the first expense to go is travel insurance according to a recent report by The Travel and Lifestyle trends report revealed that one in three Australian do not travel with insurance. 

The study found that younger travelers through themselves the most invincible, with the bulk of Aussies who left home without adequate cover aged 18-24.

Director of Travel Insurance Australia Walter De Angeli called the behaviour short-sighted. Warning that essentially everybody should be purchasing travel insurance.

However, with repatriation in the case of medical emergency costing on average upwards of $50,000 travel insurance really isn't something you should consider leaving home without.

Another issue to consider when getting travel insurance is what DFAT has to say about your destination. As travel insurance companies often aren't willing to cover you for countries deemed dangerous by the federal government. "The insurer will not cover for any countries listed not safe for travel on the DFAT website," says De Angeli.

There's also a list of countries where travel is covered although DFAT advises reconsidering travel plans for these nations. It's important to keep referring to the site when booking travel because they are always changing.

When choosing which level of travel insurance cover to take out, consider your destination, the length of the trip, the activities you will partake in and make sure you read the fine print of any policy you may take out.

Watch the fine print on cancellations - if you have a legitimate reason to cancel a tour or part of your trip you will be reimbursed. However, De Angeli says to keep in mind, "nobody covers change of mind - that's just tough".

Also if your luggage is lost in transit and was checked in at the airport then "the airline is required to give you a certain amount of money for a clean set of knickers and toiletries." The issue of airlines' recompense is listed on all international airline tickets and all leading airlines will lend a hand, however you will need to check with "small cheapies" to see if they are part of that accord.

Even minor illnesses can end up costing an arm and a leg when away from home. Paying for insurance is paying for peace of mind. But there's one last warning from De Angeli: "These guys (insurers) are bookmakers. They're laying the odds that they don't have to pay you."

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