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Many Australians have opted out of travel insurance due to the rising costs, according to Compare Travel Insurance’s latest survey.

The survey found that 36% of Australians would not buy travel insurance due to its increased cost, while 26% would only buy the cheapest policy wherever possible. An additional 19% felt they “didn’t need it,” while 12% dismissed it as it “won’t cover their pre-existing illness.”

“Travellers opting out of travel insurance are putting themselves in an extremely vulnerable position. Even if the price of a policy has increased post pandemic, the cost of overseas medical bills or trip cancellations can far outweigh the cost of a policy, particularly in today’s travel climate. It’s important to consider those risks before even contemplating a holiday,” Ball said. “Ambulance costs alone can cost more than $5k. A stay in a US hospital can result in bills amounting to tens or even hundreds of thousands of dollars, which is not the sum most people can begin to contemplate while on holidays. It is vital that all travelers put their health and safety first.”

Insurance for young and older Australians

Young Australian travelers are least likely to take out travel insurance, especially when faced with increased travel costs – with DFAT revealing that one in 10 travelers under 30 rejected the idea of ​​insurance regardless of their destination. Moreover, a concerning number of travelers believe that the government will help them if they experience a medical emergency, which is not the case.

The rising cost of travel insurance has also left older travelers unprotected – with Compare Travel Insurance’s quote comparison on June 27, 2023, revealing that taking a week’s holiday to Bali would cost a 64-year-old $49, but an 85-year-old in perfect health would have to pay over 10 times more for their cover ($505).

“The increase to already high premiums has made travel insurance increasingly unaffordable for older travelers, particularly if they have pre-existing conditions to declare,” Ball said.

Tips for travelers

Compare Travel Insurance says travelers can save money by choosing their cover wisely.

“Compare carefully to ensure you’re covered for any unexpected incidents that may arise and consider where you may be able to scrimp. For example, you may be able to reduce your luggage cover if you are already insured through your home and contents insurance, or through your credit card,” Ball said.

Meanwhile, older travelers should compare policies to get the best deal or seek out a specialist seniors’ insurer.