What Does Travel Insurance Cover?

When planning a trip, it’s easy to focus on the fun stuff – flights, accommodation, activities, packing lists. But travel insurance is one of the most important things you’ll need to organise before you go. It’s not just about peace of mind – it’s about protecting yourself financially if things go wrong.

Here’s a breakdown of what a good travel insurance policy typically covers.

Medical Emergencies & Hospitalisation

This is the big one. If you get sick or injured overseas, the costs can be astronomical – especially in countries without public healthcare. Travel insurance can cover hospital stays, ambulance transport, emergency surgery, medication and even medical evacuation back to Australia if needed.

Trip Cancellations & Delays

Had to cancel your trip due to illness, natural disaster, or a family emergency? Travel insurance can help you recover non-refundable costs like flights, hotels and tours. It can also cover expenses if your trip is delayed or disrupted.

Lost, Stolen or Damaged Belongings

Whether it’s a lost suitcase, stolen phone, or damaged camera, insurance can help reimburse you for the value of your belongings (up to a certain limit). This also often includes cover for travel documents like passports.

Rental Car Excess

If you’re hiring a car, many policies include cover for the excess fee you’d be charged if the car was damaged or stolen. This can save you big time and is so worthwhile if you are hiring a car!

Personal Liability

If you accidentally injure someone or damage property while overseas, travel insurance can cover your legal liability.

Adventure Activities (Sometimes!)

If you’re into hiking, skiing, or other adventure activities, check the fine print. Some policies include these, others require add-ons. If you are doing these sorts of activities, be sure to read the fine print!

If I did not have the altitude add-on through Cover-More Travel Insurance when I travelled to Peru in 2025, I would not have been covered for the eight hours of oxygen therapy I received in hospital due to altitude sickness. Youch!