TRAVELLERS AT RISK AS INSURANCE SKIPPED AMID COST PRESSURES

16.1% of travellers rarely or never purchase insurance before departing

Rising overseas medical costs are failing to deter a significant number of Australians from travelling without insurance, according to new research highlighting growing financial risks for holidaymakers.

A growing share of Australians are heading overseas without travel insurance, as cost pressures and complacency influence travel decisions.

New research from iSelect shows that 16.1 per cent of travellers rarely or never purchase insurance before departing, despite the increasing threat of extreme weather events that can disrupt travel plans.

The study also found that a further 22.7 per cent of travellers buy insurance only occasionally, leaving many exposed to potential financial losses from cancellations, medical emergencies or lost belongings.

Cost concerns are driving decisions

Price remains a key factor behind the decision to skip cover. Among those who travel uninsured, 43 per cent said travel insurance was too expensive, while 23 per cent believed they did not need protection because they had not encountered problems on previous trips. Another 22 per cent relied on reciprocal healthcare agreements.

Overall, just 61 per cent of Australians said they always purchase travel insurance before travelling overseas.

Experts warn of risky mindset

Sophie Ryan, Comparison Expert at iSelect, said the findings reveal a concerning mindset among travellers who underestimate the financial consequences of unexpected events abroad.

“Often skipped over when planning a holiday, failing to adequately prepare can see medical emergencies, extreme weather events, cancellations or lost belongings quickly turn a dream holiday into a very expensive problem,” Ms Ryan said.

She added that ongoing cost-of-living pressures are prompting some travellers to trim or remove insurance from their budgets altogether.

“When people are already stretching their budget to afford flights and accommodation, travel insurance can feel like an easy expense to drop,” she said.

“The reality is that the cost of insurance is usually small compared to what travellers could face if something unexpected happens overseas, and, in most cases, it will make up only a very small fraction of your total holiday budget.

“There are plenty of more effective and less risky ways to cut costs. Maybe consider booking cheaper accommodation or looking for discounted flights and shoulder season specials before saying no to travel insurance.”

A dream holiday can turn into a very expensive problem,

Insurance is still seen as optional

Despite careful planning for flights and accommodation, the research suggests that many travellers continue to treat insurance as an optional add-on rather than an essential part of travel preparation.

Industry observers warn this approach could leave holidaymakers facing substantial out-of-pocket costs if plans change or emergencies arise overseas.