Backpacker Insurance: What's In It For Me?

It's no secret that backpackers like to save money. For many of us, planning a trip overseas is an exercise in cutting corners wherever possible. We'll borrow a backpack, scour the web for cheap flights and ring up overseas friends to score free accommodation. And then there's the question of travel insurance.

Deciding whether to invest in insurance can seem like a tough question when you're sitting at home in perfect health trying to see how far your holiday cash will stretch. But for Australians heading overseas, travel insurance is more than just another financial commitment. It provides a range of benefits, both financial and otherwise, that more than outweigh its cost.

The first big benefit of travel insurance is peace of mind. While we don't like to think about getting sick, the truth is that illness and accidents befall travellers every year. And the ramifications can be extremely costly. For instance, if you fall ill in a developing nation, there may not be adequate facilities available to care for you. According to the Australian Government's 'Smart traveller' website, medical evacuations even from nearby Bali have exceeded $60 000. And we've all heard the horror stories of how expensive American hospitals are. 

If you feel you don't have enough money to pay for holiday insurance, then you certainly don't have enough to finance an emergency evacuation or an extended hospital stay. So it may your family who foots the bill. You’ll have a very long innings between overseas trips if you're working off a 60 grand IOU to mum and dad.

But it's not just when something goes majorly wrong that travel insurance can save you money. A comprehensive policy includes items such as trip cancellations, lost luggage and stolen valuables. Having your digital camera or iPod go missing is an unfortunately common occurrence for tourists. It makes the loss a lot easier to bear knowing you’ll be reimbursed for your beloved gadgets. 

Minor medical expenses are also covered. This means you’re able to get the best advice available for any ailments you suffer on your trip. Without worrying about the price. The cost of all doctors’ visits and medication will be fully refunded to you on your return.

Getting the most out of your travel insurance starts with finding the right provider and policy for your personal situation. The best way to do this is to buy online. By going direct, you’re able to bypass the commissions that travel agents charge and save money. You’re also able to easily compare all the available options and make an informed decision. 

The convenience of direct travel insurance means you can buy right up until your departure date and extend the policy if you decide to prolong your trip.  To get the best value, try to decide on and pay for a policy as soon as you know where you’re going. You’re generally covered for cancellation the minute you sign up and the rest of your cover kicks in on the day you leave.

There are plenty of ways to save money on your overseas trip. But cutting out the travel insurance isn’t one of them. With one payment you’ve covered yourself against all sorts of worst case scenarios as well as plain old bad luck. So you’re free to get on with enjoying your holiday.