What is travel insurance & how does it work?
Although travel insurance can seem confusing, and understanding how the process works can take some getting used to, we’re here to help you navigate each part of the journey and show you how easy it can be to safeguard your adventures.
What is travel insurance?
Travel insurance is designed to help protect against financial loss that could occur before, or whilst travelling..
Travel insurers provide cover for many types of unexpected events, like medical emergencies, natural disasters and lost luggage. The amount of compensation they agree to provide is usually different for each of these types of events, and is often called a ‘benefit limit’.
The level of cover you have also depends on the specific type of travel insurance policy you choose. We know that each traveller and trip is different, so SCTI’s policies include international comprehensive cover, annual multi-trip, medical only cover, working overseas and domestic cover – find out more about these different types of policies to help you choose the right cover for you
How does travel insurance work?
Travel insurance is a contract between you and an insurance provider.
The travel insurance company agrees to compensate you for the cost of unexpected events (e.g. if your luggage is lost overseas).
To receive this cover, you must adhere to the terms and conditions of your policy (e.g. not leaving your luggage unattended).
It’s important to read Target Market Determinations and Product Disclosure Statements thoroughly and ensure you understand the coverage before purchasing a travel insurance policy.
Client Testimonial
Extremely good customer service and claims experience
I sustained a dislocated ankle fracture in Japan and required multiple surgeries and an extended hospital stay. Southern Cross (emergency and claims team) were so easy to deal with, accommodated to my needs when I didn’t have a Japanese Sim to call the hotline, fast responses and the claims process was smooth and quick. Can’t fault them and will be recommending them to everyone! Will definitely repurchase.
- Emily Johnston
(As posted on ProductReview.com.au)
What is travel insurance excess?
Travel insurance excess refers to the agreed amount to be paid if you need to make a claim on a policy. If an excess applies to a claim, that excess amount will be subtracted from the amount the travel insurer pays out for an approved claim.
When choosing your travel insurance policy, you may have the option to choose your excess amount, or whether you have any excess at all. Your premium may be higher if you choose not to have an excess.
Types of travel insurance
Different types of travel insurance policies offer different benefits. Our International Comprehensive policy can cover you for things like:
- Medical and evacuation
- Cancelling or changing your journey before you leave
- Lost or stolen items
- Bank cards, passport and travel documents
- Personal accident
- Personal liability
- Rental vehicle excess
- Cash allowance while in hospital
- Emergency dental treatment
- Overseas funeral expenses
- Changes to your journey once you have left
- Some COVID-19 events
Medical Personal Belongings Travel Documents Delays Rental Vehicle Access
- Medical treatment
- Doctors' visits
- Prescribed medication
- Specialist treatment
- Medical transport costs
- 24 hour emergency assistance.
Staying local?
Domestic travel insurance covers you when you're travelling in Australia, whether it’s for a weekend city break or a month-long road trip to see the sights. Domestic insurance can provide cover for things like:
- Changed or cancelled plans
- Lost luggage and personal items
- Rental vehicle excess
- Cover for your pets or booked childcare if your plans change
- Personal accidents and liability
Working overseas or taking more than one trip?
Everyone travels differently and you may have some requirements that are different to a standard international policy. If you’re planning to work overseas or you know you’ll be taking many trips within a year, the cover you need may be different, so its important to find a policy that suits your needs. Our Working Overseas or Annual Multi-trip policies may be great places to start when you're looking for cover in these situations.
What does travel insurance cover
What is covered under your travel insurance will depend on the specific policy you choose. The maximum amount of cover also varies between providers and policies. Find the right travel insurance for your trip by comparing our policies. Remember, all insurance policies will have terms, conditions and exclusions, so make sure you read the Product Disclosure Statements before buying your cover. Some of the most common benefits that can be included in a travel insurance policy are:
Medical and evacuation when overseas
Including medical treatment, doctors’ visits, prescribed medication, specialist treatment and medical transport costs
Cancelling or changing your journey
If your trip is cancelled or changed due to an illness, injury or natural disaster before you leave or once you have left
Baggage and personal items
Bags delayed, misdirected or misplaced for 12 hours or more? We can cover lost, stolen or damaged items
Pre-existing medical condition cover
We often cover for pre-existing medical conditions that many other insurers won’t
Covid-19
If you are diagnosed with COVID-19 before you leave, or while on your journey, we offer cover in some scenarios
Free cover for dependent children
Going on a family holiday shouldn’t break the bank so we make it easier for families to travel by covering dependent kids for free
Rental vehicle excess
We offer payment towards any rental vehicle excess you must pay if the vehicle you hired is stolen or damaged
Personal liability
We can provide cover towards legal liability for damages, compensation and legal expenses
How to make a travel insurance claim
Knowing how and when to make a claim can be tricky to understand, but we’re here to help you through the process, to ensure that you’re confident about the claiming experience.
If you’ve returned from your trip and ready to make a claim, here’s a few simplified steps of how to get started with the process. This can vary between provider, so be sure to check you’re following the correct process before you begin your claim submission.
- Submit your claim details, including all receipts and supporting documents (like screenshots and pictures) to your insurance provider. This may be through a portal, via email, or an online form. Check on your insurance provider’s website about how they’d like to receive your claim.
- Your claim will then be placed in a queue and your claim will be reviewed.
- Once your claim is assessed, your insurer will be in touch with you, notifying you of the outcome of your claim, or to let you know if any further documentation is required.
- If your claim is approved, your insurer will then process payment for the claim.
Remember, if you find yourself in an emergency and need to contact your insurance provider, they should have an emergency assistance phone line. For SCTI, the Emergency Assistance phone number is +61 2 9191 1180.
Whether you’re travelling with family or friends, going on a two-month holiday or a two-day escape, going snorkelling or food tasting, or anything in between, make sure the cover that you buy meets your own specific needs.
What you need to know
This page includes some information about our products but, as with all insurance policies, terms and conditions apply. For our terms and conditions (including information about exclusions, excesses and sub limits) we recommend you read the relevant Financial Services Guide (FSG), Product Disclosure Statement (PDS) and Target Market Determination (TMD) to ensure our travel insurance products are right for you.
You can find the relevant documents here: International Comprehensive, Annual Multi-trip, International Medical Only, Working Overseas, Domestic.
The content of this article is general and provided for information purposes only. Southern Cross Travel Insurance (SCTI) doesn’t guarantee or warrant the accuracy, completeness or currency of any article.
This article may contain hyperlinks to other websites owned or operated by third parties, or references to third party products or services. SCTI isn’t responsible for, and makes no recommendation about, the content or accuracy of any third party website, or for the suitability or performance of any product or service. The inclusion of a link in this article doesn’t imply that SCTI endorses the website or third party product/service.
