Unpacking the Truth: 9 Common Travel Insurance Myths

Question

Myth #1: Travel insurance providers hide stuff in the fine print.

Fact: There is no fine print. All the details about Cover-More travel insurance plans are included in the product disclosure statement (PDS).

It’s easy to stumble across misinformation about travel insurance providers hiding details in the fine print, but here’s your cue to stop believing this myth about travel insurance.

The reality about this myth is this: by law, travel insurance providers must detail everything about what their policies do and don’t cover in a product disclosure statement.

A product disclosure statement, also known as a PDS, is a contract between the insurance provider and customer that explains terms, conditions, benefit limits, and more.

For example, our Cover-More travel insurance PDS clearly details things like:

Where you can – and can’t travel – for your cover to apply
The benefit limits available for each plan benefit
All our options to vary your cover
Claim approval conditions
All the activities we automatically include in our policies
How and when to contact us if you need help
A list of things we cannot cover under any circumstance.

…and lots more.

We provide cover for a lot of unexpected scenarios, so our PDS may seem pretty long. But, our PDS is very detailed to benefit you. That right – if you have a good understanding of what’s in our PDS, you’re more likely to understand when you can make a claim... and you may be more likely to get your claim approved.

That’s why it’s so important to read the PDS thoroughly, so you understand exactly what the policy covers you for before you purchase it. You may even discover some benefits you didn’t realise you had!

Myth #2: Travel insurance doesn’t provide cover for many medical conditions.

Fact: Cover-More travel insurance automatically provides cover for 30+ existing medical conditions, and can provide cover for scores of other existing medical conditions – all you need to do is complete our online health assessment.

That’s right, this is one of the myths about travel insurance that does not apply to our Cover-More policies. Our Basic, Comprehensive and Comprehensive+ plans automatically include cover for over 30 existing medical conditions, as long as you meet the criteria detailed in our PDS.

If you have one or more existing medical conditions that are not on our list of automatically included ones, you can take our online health assessment to understand what cover we can provide. What we can offer will depend on your condition(s), and over for some conditions may be included for no additional premium while others will require an added fee. Once you take the assessment, you’ll know what cover we can provide you with!

Don’t forget to declare all your existing medical conditions when purchasing your policy. If you don’t, you may find your claim is denied – even if it doesn’t initially appear directly related to your condition.

Importantly, there are some existing medical conditions our travel insurance plans cannot cover. It’s important to read the PDS carefully to learn about these before locking in your travel insurance policy.

Myth #3: Travel insurance providers don’t like giving personal advice about which policy to I should choose.

Fact: Under Australian law, it is illegal for travel insurance providers to give personal advice.

This is another common travel insurance myth that just isn’t true. In Australia, the travel insurance industry is regulated by laws that govern all financial services providers – think banks, mortgage lenders, all types of insurance providers, etc.

Under these laws, insurance providers cannot give customers personal advice. So, if you call our friendly customer service team wanting advice on which plan to choose, they’ll only ever be able to give you general advice about our travel insurance plans and how our policies can help protect travellers. But, don’t fret – we have plenty of information about our plans in our PDS to help you make an informed decision about whether our travel insurance is right for you and your holiday.

Myth #4: I won’t have cover if I have a drink when I’m on holiday.

Fact: Just like at home, it’s important to be responsible when drinking alcohol on holiday. However, our Cover-More travel insurance policies may offer protection for travellers with a blood alcohol concentration level under 0.19%, depending on the circumstances of the claim. Importantly, we take your impairment level into consideration when processing your claim, as well as reports from medical practitioners, your own admission or version of events and witness reports by others who were there.

There is sometimes a little substance to this myth – some travel insurance providers may have a “general exclusion” relating to alcohol consumption, which means your claim may not be approved if you’re found to have a blood alcohol concentration level over 0.00%.

At Cover-More, we know travel is all about relaxing and having a good time – and for some people that involves having a drink. That’s why we don’t have a blanket “zero alcohol tolerance” as part of our policy.

However, the General Exclusions section of our PDS details that we take your impairment caused by alcohol consumption into account when considering your claim. There could be times someone’s blood alcohol level is well below 0.19% but they are still considered impaired due to alcohol consumption.

An example of this might be that a traveller could be jetlagged and taking medication which enhance the impact of alcohol on the body in an unforeseen way, impairing reflexes and judgement as if more alcohol had been consumed.

It’s smart to read the General Exclusions section of the PDS in full before you set off on your trip.

Important: We recommend you take personal responsibility and drink more responsibly than usual during your trip. If your claim involved or arises from heavy drinking, your claim could be denied in some circumstances.

Myth #5: Travel insurance is all the same.

Fact: Travel insurance plans and their inclusions can vary quite a bit between providers. At Cover-More, we offer our travellers a choice of three plans, with the ability to vary cover as well to suit your needs.

It's time to dispel this myth about travel insurance once and for all: different travel insurance providers do offer different benefits and benefit levels.

Our Cover-More travel insurance comes in three plan options – Basic, Comprehensive and Comprehensive+ – so travellers can choose the plan that best suits their needs. We also offer options to vary your cover based on your trip, with cover for travellers hoping to go on a cruise, a snow sports holiday, or try adventure activities.

This is why it’s smart to think carefully about your holiday activities and make sure your travel insurance policy can provide cover for as many of your chosen activities as possible. That way, you can worry less and focus on having fun once you’ve set off on your trip.

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Family that purchased travel insurance because they disregarded travel insurance myths

Source: Getty

Myth #6: Travel insurance is only for overseas trips.

Fact: Domestic travel insurance can come in handy if you need to unexpectedly cancel your trip for a covered reason, your luggage is delayed, your valuables are stolen, you miss a special event (like a concert) because your flight is delayed, and more.

Yes, travel insurance can be extra helpful when you’re overseas thanks to its medical assistance benefits. But, even though our Cover-More domestic travel insurance plans don’t include Medical Expenses Cover (because you will still have access to Medicare benefits when travelling domestically), they have some benefits that may come in handy if your domestic getaway gets side-tracked by things out of your control.

Here are some of the benefits of our domestic travel insurance cover, which may just save the day during a sticky situation closer to home:

Amendment and Cancellations Costs cover: If you include this in your policy, you can have cover for several hiccups that may affect you before you’ve left home and while you’re on the road.
Luggage and Travel Documents cover (Available on Comprehensive and Comprehensive+ plans): You may be able to lean on this if your valuables or luggage go missing or are stolen.
Delayed Luggage Allowance cover (Available on Comprehensive and Comprehensive+ plans): If you get to your domestic holiday destination but your luggage is delayed, you can access this benefit in some circumstances.
Driving Holidays cover (Available on Comprehensive and Comprehensive+ plans): This one can be quite popular when road tripping, as it provides benefits including cover for the insurance excess for your personal or rental vehicle – as long as your claim satisfies the criteria listed in our PDS.

Some limits apply to the above benefits, so please read the PDS to learn more.

Myth #7: Travel insurers don’t actually approve claims.

Fact: In 2023, Cover-More approved and paid out more than 85% of all claims submitted.

This travel insurance myth could not be further from the truth, especially when it comes to our Cover-More travel insurance team.

In recent years, we’ve paid out tens of thousands of claims each year, ranging from small claims less than $100 under our Luggage Delay benefit, to more complex claims made by travellers experiencing injuries or illnesses while overseas with values more than $200,000.

Most holidays do go off without a hitch; however, if you do experience difficulties during your travels, being able to make a travel insurance claim may help you recover financially (and stress less!).

If you have a thorough understanding of our PDS, you’re more likely to know which benefits you’re eligible for, and the different criteria that applies to each claim. So, it’s extra important to read the PDS in full before you set off on your holiday.

DID YOU KNOW?
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Myth #8: I don’t need travel insurance because I’m healthy and going somewhere safe.

Fact: Travel insurance provides many benefits beyond health-related ones.

Being healthy is wonderful, but it doesn't grant you immunity from accidents and travel disruptions while you’re on holiday. The same goes for if you’re visiting a country or city that’s usually considered “safe”. That’s why this travel insurance myth is one you shouldn’t take too seriously.

Here are some ways our travel insurance cover may be able to save the day if things go awry when you least expect it:

If you have included Amendments and Cancellations Costs cover in your policy and you have to rearrange your tropical holiday because of a tropical cyclone
If you injure yourself while surfing or jet skiing
If you need to cut your trip short and return home urgently because a family member unexpectedly suffered a disabling illness or injury
If you have Snow Sports Cover included in your policy and unexpectedly sprain your ankle while skiing
If you have Cruise Cover included in your policy and your cruise experiences delays because of bad weather and you miss your non-refundable shore excursion
If you miss a concert or festival because your flight is delayed, and you’d like to recoup the costs of the ticket and non-refundable accommodation.

Myth #9: I have to wait till I’m home to make a claim.

Fact: You can make a claim as soon as you please, using our Online Claims Centre.

When it comes to our Cover-More plans, this travel insurance myth is definitely one of days past. You can now submit claims online, 24 hours a day, from wherever you are in the world. We recommend you lodge your claim as soon as possible and within 60 days after the claimable event. If you’d prefer to submit a claim by post, you can download a claim form from our website, fill it out and mail it to us. Regardless of how you submit your claim don’t forget to include supporting documentation – you can learn more about what supporting documentation you’ll need in our PDS.

At the end of the day, travel should be about making new memories and experiencing joy while exploring world. But the reality is this: if something goes wrong unexpectedly mid-trip, having a comprehensive travel insurance policy may be able to help you get your trip back on track quickly – and leave you less out of pocket!

So, it’s smart to ignore the myths and misinformation and make an informed decision about travel insurance before you set off on your next getaway.

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