In the face of rising living costs, a growing number of Australians are contemplating skipping travel insurance as a means to save money. However, Southern Cross Travel Insurance (SCTI) is cautioning against this decision, emphasizing the significant financial risks associated with traveling uninsured.
According to findings from the SCTI Future of Travel 2024 report, approximately 2.4 million Australians may choose to forgo travel insurance as a financial compromise. SCTI is urging travelers to reconsider, highlighting the potential consequences of mishaps while abroad.
The report underscores that even minor incidents can lead to substantial financial burdens, particularly in countries with expensive healthcare systems. SCTI revealed that slips and falls, as well as lost luggage, can result in unexpected and hefty expenses.
Data from SCTI’s records illustrates the magnitude of potential costs. For instance, a slip near a hot tub in the USA resulted in a $120,000 medical claim for a 14-year-old, while a hip injury in Fiji incurred costs of $160,000 for another traveler.
Jo McCauley, CEO of SCTI, emphasized the underestimated risks associated with common travel incidents. “Many Australian travelers underestimate the potential costs associated with common travel mishaps. From minor medical incidents to lost luggage, the expenses can quickly add up, leaving travelers in a precarious financial situation. Investing in travel insurance is a simple yet crucial step in safeguarding against these unforeseen expenses,” she stated.
SCTI’s claims database reveals a range of incidents with significant financial impacts. A 94-year-old required an air ambulance from Fiji costing $160,000, while a surfing accident in Mexico led to medical costs of $79,500 for a 36-year-old. An accident involving a moped taxi in Indonesia resulted in a $73,000 claim.
Additionally, SCTI documented substantial claims for baggage loss and trip cancellations. One traveler received a $7,000 payout for a trip cancelled due to a medical emergency, and another claimed $5,000 for stolen luggage.
SCTI is urging Australians to prioritize travel insurance when planning trips. “By ensuring they are adequately covered, travelers can enjoy peace of mind knowing they are protected against the unexpected,” the insurer advised.
