Travel Insurance for Australia

Do I Need Travel Insurance for Australia?

Travel insurance isn't required when visiting Australia, but it may be a good idea. It provides financial protection against travel disruptions, lost luggage and other mishaps that can disrupt your trip. Plus, it can help cover medical costs—something your U.S.-based health insurance plan likely won't do—if you become sick or injured while traveling. Without it, you could be on the hook for hundreds or even thousands of dollars in expenses if something goes wrong.

What Does Australia Travel Insurance Cover?

Covered services and policy limits vary between plans, so it's important to read the fine print, but most plans typically cover:

• Trip cancellation and interruption: Extreme weather, missed connections, delayed flights, injury and illness are just a few of life's curveballs that can disrupt your travel plans. Travel insurance often covers nonrefundable travel expenses if your trip is interrupted or canceled for these and other covered reasons.
• Lost or stolen baggage: Delayed, lost and stolen luggage are risks you take when traveling overseas. Travel insurance can help cover the cost to replace items that don't arrive on time, get lost or are stolen while traveling.
• Emergency medical expenses: Australia doesn't accept U.S. health insurance plans, and the cost of health care in the country is high. Whether you need to visit a local urgent care because you get sick on your trip or you're rushed to the hospital after being seriously injured while hiking, travel insurance can help cover the bill.
• Emergency evacuation: Australia is known for its remote locations, and if you happen to be visiting one when illness or injury strikes, you may not be able to get the medical treatment you need. The cost to evacuate you to an area that can provide appropriate care can cost $250,000 or more. Many travel insurance plans cover the expense.
• Remains repatriation: If the unthinkable happens on your trip, travel insurance can pay to return your remains to the United States.
• Emergency assistance: Navigating the health care system in a foreign country isn't always easy. Travel insurance can help coordinate your care, get word to your loved ones back home, arrange transportation and more.

Learn more: What Does Travel Insurance Cover?

What Does Australia Travel Insurance Not Cover?

While travel insurance can reimburse you for many costs if your trip gets derailed due to injury, illness and travel mishaps, it doesn't cover everything. The following may only be covered in certain situations or excluded from your coverage altogether.

• Preexisting conditions: Many travel insurance plans exclude coverage for preexisting conditions unless you purchase a policy with a waiver. To qualify for a preexisting condition waiver, you typically need to buy a plan within a few weeks of making your first trip payment, insure all nonrefundable expenses and be medically cleared to travel when you book your trip.
• Substance abuse: Illness and injuries caused by alcohol or drug use aren't typically covered by travel insurance.
• Changing your mind: Travel insurance usually only kicks in if a covered event derails your plans. Changing your mind about traveling isn't usually covered unless you have a cancel for any reason (CFAR) policy. CFAR plans are generally more expensive than basic travel insurance policies and will reimburse you for 50% to 75% of your insured costs. You typically need to purchase a CFAR plan within 14 to 21 days of paying your initial deposit.
• Adventure travel: Many travel insurance plans exclude coverage for certain high-risk pursuits, such as mountain climbing, skydiving, scuba diving, bungee jumping and more. If your trip includes these types of activities, you may need to look for coverage from specialty providers. However, some traditional travel insurers may also cover you.
• Foreseeable events: Named storms, airline strikes and other foreseeable events that could interfere with your travel plans often aren't covered by travel insurance.

How Much Does Australia Travel Insurance Cost?

Australia travel insurance typically costs about 4% to 8% of the amount you're insuring, according to the U.S. Travel Insurance Association. The amount you'll pay depends on multiple factors, including the cost and length of your trip.

Longer trips with a higher price tag cost more to insure than shorter jaunts with fewer insured expenses. Your age and the plan's policy limits also play a role. Older individuals generally pay more for coverage than younger folks, and plans with higher limits typically cost more than those with lower limits.

Learn more: Average Cost of Travel Insurance

Is Australia Travel Insurance Worth It?

Shelling out hundreds (or even thousands) of dollars for travel insurance may not seem worth it at first glance. However, the initial cost of the policy could save you significantly more than what you pay for it if you need to file a claim. Plus, travel insurance offers peace of mind, knowing you'll be able to get medical care if you need it while traveling abroad without racking up thousands of dollars in medical bills.

How to Choose the Best Travel Insurance for Australia

If you decide to purchase travel insurance for your trip to Australia, here are some tips to help you find the plan that best meets your needs.

• Compare multiple providers. Coverage may vary between insurers. Comparing policies from different insurance companies is a good way to ensure you get adequate coverage at the best rate. You can request quotes directly from individual insurers or use an online marketplace to compare policies from multiple insurers.
• Consider adventure insurance. If your trip includes high-risk activities, review policies that cover your planned adventures. If you can't find the coverage you need from a traditional insurer, look for providers that specialize in adventure sports.
• Review policy limits. Different plans, including those from the same provider, offer varying levels of coverage. It's crucial to have enough coverage if disaster strikes. Otherwise, you could still be on the hook for out-of-pocket expenses, even if you've purchased travel insurance.
• Check out reviews. See what other happy (and not-so-happy) customers are saying about the companies you're considering. There's no guarantee you'll have a similar experience, but reading customer reviews can provide insight into how customers feel about different companies.

The Bottom Line

No one will stop you from traveling to Australia without travel insurance, but purchasing coverage can help protect your wallet and peace of mind. If disaster strikes, coverage can kick in to get you the health care you need, pay for medical bills, replace lost or stolen belongings and reimburse you for nonrefundable travel expenses.