A family forced to pay $120,000 after a teenager slipped and broke his arm while getting out of a hot tub on a trip to the US is just one of many horror stories that experts say travel insurance essential when on holiday.
While the increased cost of living means Australians are increasingly cutting costs where possible, Southern Cross Travel Insurance (SCTI) warns that travel insurance is not something that can be sacrificed.
New SCTI figures reveal 2.4 million Australians said they would not buy travel insurance as a way to save money.
“Although slip and fall incidents may seem minor at first glance, they can result in hefty medical bills, especially in foreign countries where healthcare costs can be prohibitive,” said an SCTI spokesperson.
“Similarly, lost luggage can disrupt travel plans and lead to unexpected replacement costs.”
Simple accidents can add up to big medical costs, for example, a traveler in Fiji recently fell and broke his hip—requiring medical attention and an air ambulance back home at a total cost of $160,000.
In another incident, a passenger broke his sacrum (a bone connected to the pelvis) in a surfing incident and required an emergency internal transfer to a better hospital, surgery and an upgrade to a business class flight back to Australia at a total cost of $79,500.
A moped accident left another passenger with a $73,000 claim, while an e-scooter accident left a hiker with a $69,000 bill.
Lost baggage and trip cancellation are also common, expensive claims.
A traveler was left with a $7,000 claim after his father suffered a stroke and had to cancel his trip.
Another passenger’s luggage was stolen when their car was broken into, resulting in a $5,000 claim.
“Many Australian travelers underestimate the potential costs associated with common travel accidents,” said SCTI CEO Joe McCauley.
“From minor medical incidents to lost luggage, costs can quickly add up, leaving travelers in a precarious financial situation.
“Investing in travel insurance is a simple but important step in protecting against these unexpected costs.”
In 2023, the average cost of SCTI international medical-only policies sold to Australian customers was $266.61, while the average claim cost was $2,478.82.
“By ensuring they are adequately covered, passengers can enjoy peace of mind knowing they are protected against the unexpected,” said the SCTI spokesperson.
“The approximate cost of a travel insurance policy for a week’s trip to Fiji for two adults aged 40 and two children is $134.79 for International Comprehensive Cover with Southern Cross Travel Insurance.
“The estimated cost of medical coverage for the same trip would be $80.64.”
