Earlier this year, South Cross Travel Insurance (SCTI) found that one in 10 Australians could ditch travel insurance due to the cost-of-living crisis, and with rates continuing to rise the insurer has said even more Aussies might now be thinking of cutting back on cover.
“We carried out research at the beginning of the year which showed that one in 10 Aussies would cut back on travel insurance as a direct result of the cost-of-living crisis,” said Jo McCauley, SCTI CEO. “With interest rates continuing to rise, we think this number may have increased even further.”
Conducted at the beginning of 2023, SCTI research found that three in four (74%) Australians who travelled overseas in 2022 faced issues, with the most common being illness other than COVID-19 (43%), followed by airline-related issues such as lost luggage, flight delays or cancellations (38%), and COVID-19-related travel disruption (36%).
“We're all feeling the pinch at the moment, so it's natural that people are starting to look at ways to save money. However, it's important to remember not to cut back on your travel insurance,” McCauley said.
The findings align with Compare Travel Insurance's recent survey results, which found that 36% of Australians will not buy travel insurance due to its increased cost, while 26% will only buy the cheapest policy wherever possible.
SCTI reminded Australians that there are other travel expenses still costlier than travel insurance.
For comparison, SCTI noted that the cost of a single-trip travel insurance policy for two weeks in Bali can cost as little as $230.36 for a 30 year-old couple, which is only $16.45 a day, potentially less than the price of a coffee and a sandwich at lunchtime.
According to the insurer, some travel expenses costlier than a travel insurance policy include:
“Many of us happily accept the costs of these common place travel purchases, and yet we might consider travelling without travel insurance,” McCauley said. “However, if you end up needing to seek medical treatment overseas and you don’t have travel insurance then the costs could have a significant financial impact.
“An air ambulance from Bali to Sydney can cost anywhere between $80,000 and $110,000, and not many people can afford a medical bill that size.”
SCTI would “encourage everyone to ensure they take out travel insurance regardless of where they're travelling” to help keep them protected against the unexpected, McCauley said.
