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A travel insurance expert has warned of a “really dangerous trend” as Australian travellers cut expenses amid the increased cost of living.
Angus Kidman, from comparison website Finder, told news.com.au new research from the company had found “some of us are definitely being tight arses and putting saving money ahead of our health”.
A survey of 1062 people – 718 of whom have travelled in the last 12 months – found almost half (46 per cent) had altered their travel insurance in some way to cut costs.
“The biggest worry is the 15 per cent of folks who are planning to travel internationally without insurance,” Mr Kidman said.
“An accident or a health scare could see you tens of thousands of dollars out of pocket for a repatriation flight.”
He said Australians shouldn’t be going on a holiday if they couldn’t afford the travel insurance.
The survey also found eight per cent of people cancelled activities that would increase the cost of their premium like skiing or motorcycle riding, and eight per cent had lied or omitted details on their application to get a cheaper premium.
“Insurers will investigate before paying out claims, and if you lie about a health condition or which countries you plan to visit, chances are you won’t be covered,” Mr Kidman warned.
Looking to cut travel costs, 21 per cent said they took out the cheapest insurance option, which Mr Kidman said can be a risky move.
“There have always been people willing to chance it and not take out travel insurance at all,” he explained.
“What we’ve seen rising is folks being more cautious with their spending, and perhaps favouring a cheaper deal rather than aiming for more comprehensive coverage.
“Cheap policies aren’t inherently bad – if you’re young and travelling to Bali, for instance, you don’t need thousands of dollars to cover baggage theft and your health risks are lower.
“The Risk is just focusing on the price alone and not knowing exactly what’s included in your policy.”
He said another thing to watch out for was a higher excess on cheaper policies, which would mean the traveller would need pay more money upfront when making a claim.
Finder, which helps Aussies compare travel insurance plans, urges holiday-makers to read the fine print before locking in any deal.
It also warns that even with comprehensive insurance cover, people need to be careful as a claim may be voided if the insurer determines you failed to act responsibly.
This may include travellers having had too many alcoholic drinks, not wearing a motorbike helmet or driving without a valid licence.
The Finder survey findings come as Australians heading on cruises are warned they are not covered by Medicare and general private health insurance when on a domestic cruise – even in Australian waters.
To be covered for medical costs at sea, Australians need either international travel insurance that covers domestic cruises or a specific domestic cruise policy, not just standard domestic travel insurance.
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