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6 myths about travel insurance

6 myths about travel insurance

Travel insurance can mean the difference between an unforgettable holiday and one you'd prefer not to remember. We explain why it can be a smart investment.

Overseas holidays can be expensive. So when you’re in the middle of booking big-ticket things such as flights and accommodation, it might feel challenging to justify spending money on anything that doesn’t seem absolutely essential, such as travel insurance.

Here are a few commonly held myths around travel insurance that are worth busting.

Myth: Travel insurance is a waste of money

Hopefully you won’t need to make an insurance claim on your holiday – but that doesn’t mean that travel insurance is a waste of money. If you’re injured or become ill you could find yourself with a serious hospital bill that exceeds six figures. A relatively small amount on travel insurance now can save you a lot of money later on.

Myth: You don’t need travel insurance if you’re going to a safe country

Even if the country you’re going to isn’t known for pickpockets, travel insurance can still help you out should your luggage be lost, a flight missed or there’s any damage to your rental car.

Myth: You don’t need travel insurance if you’re healthy

According to Allianz, four out of the top five travel insurance claims have nothing to do with illness or injury. Travel insurance is just as likely to come to your rescue for a dropped camera or stolen property as it is for a trip to the emergency room.

Myth: Your claim won’t be approved if you have a pre-existing medical condition

This isn’t always the case. The Product Disclosure Statement (PDS) of the travel insurance policy you’re looking at may have a list of pre-existing medical conditions that are automatically covered under your policy.

If in doubt, ask the insurer for more information.

Myth: You don’t need to purchase travel insurance until the day you leave

If you can, it’s worthwhile trying to purchase travel insurance as soon as you start booking your holiday.

It shouldn’t cost you any more to take out travel insurance in the weeks leading up to your trip because you’ll still be entering the same travel dates. But by purchasing it sooner rather than later, you may be covered should something happen in the lead-up to your trip that means you can no longer travel on those dates or have to make other changes.

Myth: You’ll be covered for everything if you book your trip on your credit card

It’s great if your credit card includes international travel insurance that you simply need to activate.

But, as with any insurance policy, it’s important to read the policy terms and conditions to check whether you need to do anything to activate insurance cover and to make sure you’re covered for everything you want to be covered for.

If you’re not, see if you can upgrade the cover you’ve already activated, or look at what additional insurance you may want to add to give yourself peace of mind.

CommBank emergency details

  • Lock, Block, Limit your CommBank credit card or lock your Travel Money Card for added security
  • Cancel and order replacement CommBank cards in NetBank or the CommBank app
  • Call us 24/7 on +61 2 9999 3283 to report lost or stolen CommBank cards
  • Call Allianz Global Assistance 24/7 on +61 7 3305 7499 if you’ve got travel insurance included with the your credit card or a separate CBA Travel Insurance policy and want to make a claim.

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice.