19 Benefits of Travel Insurance (And What’s Not Covered)

We’ve all heard of travel insurance but what are the actual benefits? Well, as it turns out, a comprehensive policy can cover you for all sorts of things from a medical emergency to a suitcase going missing.

Read on to see the full list of benefits travel insurance can offer.

What are the advantages of travel insurance?

1. Overseas emergency medical assistance

If you’re overseas and become sick or injured, comprehensive travel insurance comes with 24/7 access to help, from an ambulance right through to a medical evacuation if you need to get to a proper hospital. In a worst case scenario, it can also cover funeral arrangements.

2. Emergency medical and hospital costs

If you end up in hospital because of an accident or sudden illness, comprehensive travel insurance covers your treatment and surgery. Some overseas hospitals won’t even admit you without proof of cover, making this a serious benefit in a life or death situation. Travel insurance can also cover emergency dental care if you need it.

3. Additional accommodation and travel expenses

If illness or injury means you can’t get home as planned, comprehensive travel insurance covers the extra accommodation and travel costs you didn’t budget for.

4. Family emergency cover

If a close relative back home dies suddenly or is hospitalised with a serious illness or injury while you’re away, comprehensive travel insurance covers your unexpected travel expenses so you can get home to them. Once things are settled, it can also cover the cost of getting you back to resume your original trip.

5. Cover for your travelling companion

If the person you’re travelling with suddenly can’t continue the trip because of illness or injury, comprehensive travel insurance reimburses any extra accommodation or travel costs that may arise as a result.

6. Hospital cash allowance

If you’re hospitalised overseas for more than a couple of days, comprehensive travel insurance pays you a daily cash allowance. It’s designed to help with the everyday costs that pile up while you’re stuck in hospital.

7. Accidental death benefit

If you die within a set period after your trip as a result of an accident that happened while travelling, comprehensive travel insurance pays a lump sum to your family.

8. Permanent disability benefit

If you lose your sight or a limb while travelling, comprehensive travel insurance pays a disability benefit, usually spread out over the months after you return home.

9. Loss of income

If an injury during your trip stops you from working once you’re back, comprehensive travel insurance pays a loss of income benefit for a set period while you recover.

10. Credit card fraud and replacement

If your credit cards are lost or stolen while you’re away, comprehensive travel insurance covers the cost of replacing them. It also reimburses any fraudulent charges made on them.

11. Theft of cash and travel documents

If your passport or other travel documents are stolen during your trip, comprehensive travel insurance covers the cost of replacing them. It’ll also reimburse stolen cash (up to a set limit).

12. Luggage and personal effects

If your things are lost or stolen during your trip, comprehensive travel insurance reimburses you for them, and it covers accidental damage too. If your bags are delayed for a set number of hours, most policies will also cover essential items like clothing (within reason, of course).

13. Cancellation fees and lost deposits

If your trip is cancelled for reasons outside your control, like illness or a natural disaster, comprehensive travel insurance covers the pre-paid flights and accommodation you lose.

14. Travel delay expenses

If your flight is delayed for more than six hours, comprehensive travel insurance covers food and any unforeseen accommodation you might need to pay for as a result.

15. Alternative transport expenses

If a delay means you’re going to miss something you’ve already paid for, like a wedding or a pre-booked tour, comprehensive travel insurance covers the cost of getting you there another way.

16. Personal liability cover

If you’re found responsible for injuring someone else or damaging their property while travelling, comprehensive travel insurance covers your legal costs.

17. Domestic pet cover

If you’re delayed getting home to your pet, comprehensive travel insurance covers the additional kennel or cattery fees. It can also cover vet bills if your pet is injured while you’re away.

18. Domestic services

If you come home from your trip injured or disabled and can no longer manage everyday tasks, some policies cover the cost of housekeeping help at home.

19. Rental vehicle excess

If a rental car is stolen or damaged during your trip, comprehensive travel insurance covers the excess you’d otherwise have to pay, which can run into the thousands depending on the hire company.

What is not covered by travel insurance?

No policy covers everything; there are always a few things that fall outside the fine print.

Pre-existing medical conditions are a common one, unless you’ve specifically declared them and had them accepted by your insurer. Travel to a destination under a government issued “Do Not Travel” warning is usually excluded too. And high-risk activities like extreme sports often need an add-on if you want them covered at all.

Losses linked to being under the influence of drugs or alcohol are also generally excluded, as are claims where you already knew about a problem – such as a family member’s illness, before you bought the policy or booked your trip.

The only way to know the exact inclusions and exclusions is to read the Policy Wording before you buy, since these terms vary from insurer to insurer.