Travel Insurance for Australians: 5 Costly Myths Busted (2026)

You think you're covered. You're probably not. The insurance mistakes Aussie travellers keep making — and how to avoid a $50,000 medical bill.

We see it every month — someone in Bali with a broken leg and travel insurance that won't pay out. Or someone in Europe whose luggage was stolen and they discover their 'comprehensive' policy has a $500 excess they didn't know about.

Myth #1: Your credit card covers you. Some premium cards offer limited travel insurance, but the coverage is usually basic. Check the PDS carefully — most exclude adventure activities, have low medical limits, and require you to have booked the trip on that specific card. An Amex Platinum gives decent cover; your everyday Visa does not.

Myth #2: You don't need insurance for short trips. A medical evacuation from Bali to Australia costs $50,000+. A three-night hospital stay in the US can hit $150,000. The length of your trip is irrelevant — one accident can be financially devastating. Even a weekend in New Zealand needs cover.

Myth #3: Pre-existing conditions are always excluded. Many Australian insurers now cover stable pre-existing conditions if you disclose them at purchase. 'Stable' typically means no changes to medication or treatment in the past 6-12 months. Always disclose everything — non-disclosure voids your entire policy, not just that condition.

Myth #4: All adventure activities are covered. Standard policies typically exclude scooter riding (Bali's biggest claim category by far), skiing above certain altitudes, skydiving, and water sports like jet-skiing. If you're planning anything beyond beach lounging, check the activity list and upgrade to an adventure or extreme sports policy. The premium difference is usually only $30-50.

Myth #5: The cheapest policy is fine. A $50 policy with $50,000 medical cover is NOT the same as a $120 policy with unlimited medical cover. For any trip outside New Zealand, we recommend minimum $5 million medical coverage and unlimited evacuation cover. It's the one area where you absolutely should not cut corners.

What we recommend: Compare policies on comparison sites, but read the PDS. Look for: unlimited medical cover (or $10M+), 24/7 emergency assistance in your time zone, COVID coverage, and baggage cover with a reasonable excess ($200 or less). Budget $100-200 for a 2-week international policy.

We can help recommend appropriate cover levels for your specific trip — it's part of our service. Just ask when you submit an enquiry.