Should you purchase Travel Insurance? The answer is invariably yes. Most of the time your travels will be uneventful and the money spent on travel insurance may be seen as a waste. Sometimes the worst does happen, and it happens to you. Here are some of the incidents that may occur when travelling.
- Accidents (personal, car, bus, motorbike, etc)
- Family tragedy
The Australian Government recommends taking out travel insurance: http://www.smartraveller.gov.au/tips/insurance.html#why
Medical and Hospitalisation
Protecting your health is one of the major reasons for getting travel insurance. Medical care can be very expensive in foreign countries, especially the USA. At the very least it is worth getting travel insurance with a high limit for medical expenses and repatriation (getting sent home for treatment).
Luggage and personal goods
If you are carry high value items in your luggage it is a good idea to have these covered by insurance. Common items that people often carry overseas are laptop or notebooks, smartphones such as iPhone, tablet devices such as iPad, camera and other photography equipment, jewellery (often wedding or engagement rings), and sporting equipment.
There are many pitfalls that can occur while travelling that would benefit from insurance cover on your high value goods: loss of luggage, theft and muggings, breakage (accidental or not), car accidents, etc.
Different insurance companies offer different levels of protection so read the product disclosure statement (PDS) carefully before purchasing their travel insurance to make sure that you would be covered for what you need.
Cancellation or Delays
These are very common events in international travel and while most of the time it is only an inconvience there are some instances where it can mean losses of large amounts of money if you miss connections or tours.