The worrying phenomenon of Australians travelling without insurance has been highlighted in a recent survey conducted by Quantum Market Research on behalf of the Insurance Council of Australia (ICA) and the Department of Foreign Affairs and Trade’s Smartraveller.
The survey, which included responses from 1,000 travellers, highlighted a worrying trend where a significant number of people are travelling overseas without adequate protection.
The results of the survey revealed that a staggering 16% of Australians chose to travel without any form of insurance on their last overseas trip, exposing themselves to potential risks. Particularly alarming is the prevalence of this lack of protection among younger travellers, with a staggering 60% of those under 30 expressing a willingness to travel without insurance in the future.
“These findings are concerning as they suggest that a significant number of Australians are putting themselves at risk by travelling without considering potential health and safety risks or purchasing travel insurance,” said ICA CEO Andrew Hall. “Things we take for granted in Australia, such as the public health system, are not free or even available once you leave the country. Personal responsibility plays a big part in your travel plans and it’s important to read the details of your policy so you know you’re covered.”
Why Aussies are underinsured or travel without insurance
A pertinent observation from the survey is that even among those who have travel insurance, a significant proportion are overconfident in their coverage and fail to delve into the intricacies of their policy documents.
Only 19% of insured travellers admitted to taking the time to understand the details of their Product Disclosure Statement (PDS) before embarking on their trip.
Financial constraints also emerged as a key factor in the decision-making process, with 15% of recent uninsured travellers citing affordability as the main barrier.
Furthermore, in response to the escalating cost of travel, a worrying 34% of respondents admitted that they would consider travelling without insurance in order to save money.
The results of the survey are in line with the findings of the Southern Cross Travel Insurance (SCTI) report, which found that one in ten Australians could go without travel insurance due to the cost of living crisis.
Hall stressed the importance of travelling with adequate protection, especially during the holiday season.
“Travel insurance is as important as your passport – it can provide valuable protection in the event of an unexpected event such as a medical emergency, lost luggage or flight cancellation,” he said. “As we head into the holiday season, we urge all Australians to make sure they are properly insured before travelling overseas and to be aware of the risks they are taking.”
