The 5 most common travel insurance claims

We asked the Insurance Council what the most common reasons for making a claim on a travel insurance policy are at the moment – and found Covid is still having a part to play, with climate change something else we now need to consider.

Here are the current top five reasons for claims.

1. Medical

The number of medical claims and their average value is up.

Insurance Council general counsel Jane Brown said one insurance company advised the number of medical and death claims made in 2022 was the highest it’s ever been, and numbers are looking worse still this year.

“This may be due to some parts of the community having delayed travel since the beginning of the pandemic and now getting those trips in, when perhaps their health hasn’t been up to it,” Brown said.

One insurer was dealing with a claim for $1.2 million relating to medical expenses.

“Having insurance is a far better option that thinking you can fall back on a Givealittle campaign.”

2. Cancellations

Having to pull the pin on a trip was the reason for about a third of all claims.

Most comprehensive policies provide cover for non-refundable travel and accommodation costs if you have to cancel or cut short your trip due to an unforeseen event.

3. Loss of deposits

“Again, this one can be down to medical issues, but climate change is also playing a role here around weather-related disruptions,” Brown said.

Travel insurance covers you from the time you take out a policy so Brown’s advice is to buy it at the same time as booking your tickets.

“That way if there’s a weather event or volcanic eruption, changes to your travel plans will most likely be covered.”

4. Additional expenses while overseas

Weather-related issues were the reason for a lot of these claims too.

It’s important to check if your policy has any exclusions around events such as natural disasters.

5. Lost luggage

“Lost luggage claims are also up, reflecting increased disruption at airports,” Brown said.

She advised keeping all valuables and a change of clothes in your carry-on. “Keep a record of all your valuable items to make things easier should you need to claim.”

Need to buy a travel insurance policy? Check out our buying guide for advice on choosing a policy – there’s even a pre-departure checklist.

We’ve also made it easy to compare the cost and coverage of 11 policies.