Travel Insurance: What to Check Before You Buy in 2025

Buying travel insurance can feel overwhelming—there are dozens of providers, hundreds of policies, and endless fine print. But knowing what to check before you buy can save you money and ensure you’re properly protected. Here’s your 2025 checklist for choosing the right travel insurance.

1. Overseas Medical Cover

This is the most important component of any international travel insurance policy.

What to check:

• Cover limit: Aim for at least $5 million for international trips. Medical evacuations alone can cost $100,000+, and US hospital bills can reach $50,000 per day.
• Emergency evacuation: Ensure cover includes medical evacuation to Australia or the nearest suitable hospital.
• COVID-19: Confirm the policy covers overseas medical expenses if you contract COVID-19.

Red flag: Policies with medical cover below $1 million may leave you exposed for serious incidents.

2. Trip Cancellation and Interruption

Cancellation cover protects your pre-paid, non-refundable travel costs if you can’t travel due to a covered reason.

What to check:

• Cover limit: Ensure it matches the total value of your trip, including flights, accommodation, tours, and cruises.
• Covered reasons: Typical reasons include illness, injury, death of a family member, jury duty, and natural disasters. “Cancel for any reason” (CFAR) add-ons offer broader protection but cost more.
• Waiting periods: Some policies have waiting periods before cancellation cover kicks in.

Red flag: Low cancellation limits (e.g., $5,000) won’t help if you’ve booked an expensive cruise or resort.

3. Luggage and Personal Effects

This covers loss, theft, or damage to your belongings.

What to check:

• Total limit: Typical limits range from $5,000 to $15,000.
• Per-item limits: Most policies cap payouts per item (e.g., $500–$1,000). Expensive electronics or jewellery may not be fully covered.
• Proof of ownership: You’ll need receipts or bank statements to claim for valuables.
• Unattended belongings: Claims for items left unattended are usually excluded.

Red flag: If you’re travelling with expensive gear (cameras, laptops), check per-item limits carefully.

4. Pre-Existing Conditions

If you have any health conditions, this is critical.

What to check:

• Definition: Understand how the insurer defines pre-existing conditions.
• Automatic cover: Some stable conditions are covered automatically.
• Medical screening: For other conditions, you’ll need to complete an assessment.
• Exclusions: Check whether specific conditions are excluded and what this means for your cover.

Red flag: Failing to disclose a pre-existing condition can void your entire policy.

5. Activities and Adventure Sports

Standard policies often exclude high-risk activities.

What to check:

• Included activities: Common activities like snorkelling and hiking are usually covered.
• Excluded activities: Skiing, scuba diving, bungee jumping, and other adventure sports often require add-on cover.
• Limits: Check altitude limits for trekking and depth limits for diving.

Red flag: If you’re doing adventure activities, ensure they’re explicitly covered—don’t assume.

6. Excess (Deductible)

The excess is the amount you pay towards each claim.

What to check:

• Amount: Typical excesses range from $0 to $500. Lower excesses mean higher premiums.
• Per claim or per incident: Understand whether the excess applies to each claim type or each incident.

Red flag: A $0 excess sounds attractive but may mean higher premiums overall.

7. 24/7 Emergency Assistance

Access to help when you need it most.

What to check:

• Availability: Ensure the insurer offers a 24/7 helpline for emergencies anywhere in the world.
• Services: Look for assistance with medical emergencies, travel disruptions, legal issues, and lost documents.

Red flag: Budget policies without emergency assistance can leave you stranded.

8. Exclusions

Every policy has exclusions—situations where you won’t be covered.

What to check:

• Common exclusions: Travel against government advice, alcohol-related incidents, pre-existing conditions (if not declared), professional sports, and war zones.
• Destination-specific: Some regions may be excluded due to travel advisories.

Red flag: Don’t assume you’re covered—read the exclusions carefully.

9. Policy Limits and Sub-Limits

Cover limits determine the maximum payout for each category.

What to check:

• Overseas medical: At least $5 million for international trips.
• Cancellation: Should match your total trip cost.
• Luggage: Check both total and per-item limits.
• Travel delay: Daily allowances for accommodation and meals (e.g., $200/day).

Red flag: A cheap policy with low limits may not provide adequate protection.

10. Claims Process

A good policy is only useful if you can actually claim.

What to check:

• How to claim: Online portal, app, phone, or email.
• Timeframes: How long do claims take to process?
• Documentation: What evidence do you need to provide?
• Reviews: Check customer reviews for feedback on the claims experience.

Red flag: Insurers with poor claims reputations may make it difficult to get paid.

The Bottom Line

Don’t buy travel insurance based on price alone. In 2025, taking 10 minutes to check these key areas can mean the difference between comprehensive protection and a denied claim. Compare policies, read the PDS, and travel with confidence.