With Christmas and New Year only weeks away, thousands of Australians are preparing for overseas holidays. Yet many travellers still underestimate how much protection they actually need when heading abroad. The cheapest policy often looks appealing, but the real differences lie in the coverage numbers, and these gaps become critical during emergencies.

Before you finalise your travel plans, here are the essential features every Australian should check when choosing an overseas travel insurance policy.

1. Unlimited Overseas Medical Cover

Medical expenses overseas can escalate quickly. Treatment for a broken bone in the United States can reach tens of thousands of dollars, while hospital care in parts of Asia may require upfront payment.

A strong policy includes unlimited medical cover, ensuring you can access urgent care without financial strain. This is the most important component of any travel insurance policy, especially during peak travel season when incidents rise.

2. Emergency Evacuation & Repatriation

Emergencies can occur anywhere, including mountain regions, remote islands, cruise ships, or busy cities.
Evacuation and repatriation costs can run into six figures, often far exceeding hospital costs.

Choose a policy that includes unlimited evacuation and repatriation, covering transport to suitable medical facilities and return to Australia if required.

3. Trip Cancellation Cover Equal to Your Total Trip Cost

Holiday travel often involves non-refundable bookings, including flights, accommodations, cruises, tours, and prepaid experiences.

Your policy should include cancellation cover that matches the full value of your trip, not a generic capped amount.
This ensures you’re protected if illness, injury, or major disruptions force you to cancel or shorten your holiday.

4. Realistic Baggage and Personal Item Limits

Baggage cover varies across insurers. Some policies offer high total limits but low per-item limits, which can be misleading.
Before you travel with laptops, cameras, jewellery, or sports equipment, check that your policy:

• covers the replacement value, and

• allows you to specify high-value items if needed.

This is especially important during the holiday season when lost or delayed luggage spikes.

5. Clear Inclusions vs Exclusions

The Product Disclosure Statement (PDS) outlines the fine print that often surprises travellers.
Review your policy for:

• pre-existing medical condition rules

• adventure activity coverage (skiing, hiking, diving, scooter riding)

• alcohol-related exclusions

• delayed baggage limits

• travel disruption benefits

• rental car excess rules

A simple comparison of inclusions vs exclusions helps you identify gaps quickly.

Why This Matters

Holiday travel adds excitement, but also risk. A quality travel insurance policy is more than a formality; it is a financial safeguard that protects your health, safety, and trip investment.

By focusing on actual coverage rather than price alone, Australians can head into the Christmas and New Year holidays with confidence that they’re protected if something unexpected occurs.