SCTI warns against skipping travel coverage

The warning comes in response to SCTI’s 2024 Future of Travel report, which found that 2.4 million Australians would avoid buying travel insurance to save money when under financial pressure.

SCTI stated that it has seen many claims from Australian travellers that were a result of “simple accidents that led to large medical costs”.

Such incidents included a 14-year-old who slipped getting out of a hot tub and broke their arm while on holiday in the US, resulting in a $120,000 claim, and a 94-year-old who fell and broke their hip in Fiji, resulting in a claim of over $160,000.

SCTI highlighted that the cost of appropriate travel coverage was often insubstantial when compared with the cost of the trip itself. Additionally, the company noted that the medical bills incurred through accidents abroad also dwarfed the cost of simply paying for a policy.

“Many Australian travellers underestimate the potential costs associated with common travel mishaps,” said Jo McCauley, CEO of SCTI. “From minor medical incidents to lost luggage, the expenses can quickly add up, leaving travellers in a precarious financial situation. Investing in travel insurance is a simple yet crucial step in safeguarding against these unforeseen expenses.”

The Future of Travel report also found that eight out of 10 Australians were looking to reduce their travel costs over the next 12 months in response to the heightened cost of living.