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One out of three people destined for domestic travel tribulations

August 8, 2017 Insurance No Comments Email Email

We’ve all heard the horror stories of hefty medical bills from travelling overseas without insurance. But what happens when a domestic flight cancellation ruins your romantic weekend? Or your brand new Samsonite suitcase luggage gets lost, including your brand new pair of Yeezys?

New figures released by Cover-More Travel Insurance show more than one third of people who go on domestic holidays had flights cancelled, or luggage and valuables damagedIn 2016, more than 5000 domestic travel insurance claims were made by Cover-More customers.

When you think of travel insurance it’s usually associated with extreme weather events or medical emergencies, not a quick trip from Sydney to Melbourne for the weekend. But the unfortunate reality is you can suffer huge financial loss from damaged luggage, missing a flight due to illness or having your flight cancelled as a result of bad weather just as easily in Australia as you can on an overseas trip.

Examples of real life Cover-More Travel Insurance customer domestic claims:

  • A flight cancellation due to severe weather and the customer was forced to buy brand new flights. Additional Expenses: $5,500 – covered.
  • A customer’s suitcase had gone missing with their chosen airline and the items were not recoverable. Luggage value: $2,500 – covered.
  • A rental car was damaged due to a third party collision and the car was deemed a write-off. Rental Car Insurance Excess: $4,000 – covered.

Cover-More Travel Insurance figures show flight and accommodation changes or cancellation costs were by far the most claimed benefit in 2016 accounting for more than half of total domestic claims. This was followed by lost luggage and travel documents, additional expenses (like a broken iPhone) and rental car insurance excess.

Like hundreds of travellers, Mathew, planned to kick up his heels and head off to Hamilton Island for the Easter break. The trip was planned and flights and accommodation booked long before any warnings about Cyclone Debbie were issued. Though he wasn’t caught directly in the cyclone, Mathew was able to claim for the cost of re-arranging his flights so he could take the holiday later in the year. His travel companion, however, did not have insurance and was forced to pay hundreds of dollars to re-book her flights.

You don’t need to be caught up in an extreme event like Cyclone Debbie to benefit from travel insurance, though Cover-More paid out more than $330,000 to customers who had to cancel their holiday and reorganise flights/emergency accommodation because of the cyclone.

In one recent example, a customer travelling within Australia was involved in an unexpected altercation that resulted in their glasses being broken. The customer was able to claim the glasses on their policy and received a reimbursement of approximately $500.

Domestic policies have specific benefits for travel within Australia and can cover you for everything from flight cancellations and accommodation expenses through to a lost or broken iPhone.

A bout of food poisoning that stops you from making your flight or an accident in a rental car could all be covered if you have domestic travel insurance. 

Cover-More spokesperson Glenn Broadhurst said: “Everyone thinks it won’t happen to them, but there are lots of ways unforeseen circumstances can affect your travel plans within Australia. It doesn’t need to be an extreme weather event or a medical emergency for travel insurance to pay off. The truth is your flight can just as easily be delayed or cancelled when travelling domestically as they can overseas. We helped more than 5000 customers with their domestic claims last year and most of those were for flight cancellation and luggage loss or damage.”

Most common domestic insurance claims in 2016:

  • Flight Cancellation
  • Luggage and Personal Effects
  • Additional Expenses
  • Rental Car Insurance Excess
  • Travel Delay
  • Non-Medical additional expenses
  • Delayed Luggage Allowance
  • Resumption of journey

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