Heading overseas this spring? Check your travel insurance first
Before your next overseas holiday, check when cover starts, who is insured and what you would pay if something goes wrong. A practical Australian checklist for spring travel.
Published by Dolla Team on 2026-09-20.
Sources, dates and corrections follow Dolla's Editorial Standards.
Heading overseas this spring? Check your travel insurance first
If an overseas trip is on your calendar this spring, give your travel insurance the same attention as your flights. The useful question is whether the policy covers your actual itinerary, travelling companions and activities, and how much cash you might need if something goes wrong.
ASIC's Moneysmart refreshed its travel insurance guidance on 17 September 2026. With spring trips underway and summer bookings ahead, it is a good moment to check the details before more of your holiday budget becomes committed.
Start with the money you have already committed
Write down your prepaid flights, accommodation and tours, then check the refund terms for each booking. Keep refundable amounts separate from money you could lose. This gives you a practical starting point when comparing cancellation limits.
For example, imagine a couple has paid A$2,400 for flights, A$1,800 for accommodation and A$600 for tours. That is A$4,800 committed. If A$1,200 of the accommodation remains fully refundable, their current non-refundable exposure is A$3,600. These are illustrative figures, not a claim estimate; eligibility, limits and excesses still depend on the policy.
The CHOICE buying guide hosted by Smartraveller recommends arranging insurance when you book and pay for the trip. A policy with suitable cancellation benefits can then protect against covered events before departure. Check when those benefits begin. If you change your travel dates, tell your insurer as well as your airline.
Read what cancellation cover actually promises
Cancellation cover does not mean you can cancel for any reason and receive a full refund. Read the covered reasons, exclusions and limits in the product disclosure statement, usually called the PDS.
The CHOICE guide to what is covered explains that events already known when you buy insurance can fall outside cover. Buying a policy after a disruption becomes public will not usually protect you against losses caused by that disruption. War, provider insolvency and other events may also be excluded.
For a trip you have already booked, ask the insurer a specific question: "If this event prevents this itinerary from going ahead, which benefit applies, and which exclusion could prevent payment?" Keep the written response with your policy documents. Contact your travel provider about refunds or credits and notify your insurer promptly if cancellation becomes necessary.
Check credit card insurance before relying on it
Having a card that advertises travel insurance is only the starting point. Moneysmart's current guidance says eligibility often depends on paying a required amount of travel costs with that card. Cover may not extend to your partner, children or additional cardholders.
Confirm the activation requirements, eligible travellers and covered trip with the provider. Ask for evidence that your cover is active. If you paid with points or split payments between cards, explain exactly how you booked rather than assuming the purchase qualifies.
Match the policy to the whole trip
Smartraveller's insurance guidance, updated in August 2026, recommends checking every destination, including transit points. Read the current destination advice and ask how any warning affects your cover. Travel to a destination rated "Do not travel" is usually excluded.
Check these details before paying:
- Activities: Cruises, skiing, diving, hiking or motorcycle riding may need extra cover. Read the policy's definitions.
- Health and age: Disclose pre-existing conditions and confirm what the insurer accepts, excludes or charges extra to cover.
- Trip length: Annual and credit card policies can limit the duration of each trip.
- Valuables: A generous total baggage limit may still have a much smaller limit for one item.
Put the activities you have booked beside the policy's covered-activities list. Resolve any mismatch before departure.
Budget for the excess as well as the premium
Moneysmart recommends checking that you can afford both the premium and the excess. The cheapest quote may leave more of a claim for you to fund.
Suppose two otherwise comparable quotes differ by A$70, but the cheaper option has an excess A$300 higher. You would save A$70 upfront while accepting another A$300 of potential out-of-pocket cost on a claim where that excess applies. This is a comparison example, not a prediction that you will claim. Check how often the excess applies and whether different benefits have different excesses.
Record the premium as a trip expense and keep accessible money for the excess and unexpected costs. A possible insurance reimbursement is not cash already in your account.
One useful job before you pack
Create a single travel folder with your itinerary, policy certificate, PDS, insurer's emergency number and written cover confirmations. Save an offline copy you can reach overseas.
Today, open your policy and answer three questions: who is covered, when does cover begin, and which planned activity or expense needs clarification? Sorting out one uncertain answer now is a practical way to protect the holiday you have saved for.
Information checked on 21 September 2026. This article provides general information. Your policy wording and circumstances determine your cover.