Family travel insurance: How does it work?

Source: www.canstar.com.au. Prepared on 25/02/2022. *Couple and two dependants for 14 days. Based on quotes collected for the 2019 Canstar Travel Insurance Star Ratings (which are the most recent Star Ratings due to the impact of COVID-19 on travel in 2020 and 2021). International category based on quotes for multiple destinations, and Cruise category based on quotes for an Australian or Fiji cruise.

Note that the cost of a family travel insurance policy may also vary based on whether any children travelling with you are classed as dependants. If they are, some providers may allow them to be covered under the policy at no extra cost.

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What determines the cost of travel insurance?

Factors such as your level of cover, your destination(s), the size of your family, how long you need cover for, the health of your family members and the provider you use can impact the cost of travel insurance.

Factors influencing travel insurance premiums

• The level of cover: Comprehensive policies for your family with more inclusions may come with higher premiums than more basic policies.
• Your destination: Some countries are considered more dangerous than others, so you may need to pay a higher premium if you are planning a trip to a risky location with safety warnings. Before you travel, visit the Australian Government’s Smartraveller website for destination-based travel warnings and general tips about visiting other countries.
• Additional cover: Particular activities such as skiing or water sports, or spending time on a cruise ship may be seen as risky, and therefore contribute to a higher insurance premium. Alternatively, some providers may not cover these activities and may require you to take out a more comprehensive or specialised policy.
• Annual multi-trip or once-off single trip policy: Multi-trip travel insurance policies can cover you for multiple trips in a 12-month period, often making them more expensive than a policy taken out for a single trip.
• The size of your family: The number of family members you bring may influence premiums, but some providers allow eligible dependants to be added to a policy for no additional cost (so it can be worth shopping around).
• Time: The length of your trip can impact premiums.
• Provider: Your choice of provider can impact premiums – some providers may charge you more for the same trip than others.
• The health of your family members: It could be a good idea to disclose any pre-existing conditions to ensure you are covered for them, even though it may increase the price of premiums.

How do you choose the best family travel insurance?

When selecting a travel insurance policy for your family, consider policy details such as:

• the types and cost limits of medical expenses
• whether any activities are excluded
• the amount your belongings are covered for should they be lost or stolen
• what types of cancellations or delays are covered.

Every travel insurance policy is different, so take the time to read the fine print of any terms and conditions before you agree to a policy, and be aware of any special eligibility criteria that might apply before your holiday starts. Depending on your circumstances, you could find you get better value by purchasing your cover during the early planning stages (once you’ve decided where and when you’re going), as it might cover bookings you make in the lead up to your travel, as well as while you are on your trip.

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What exclusions can apply with family travel insurance?

Like any insurance policy, travel insurance can come with exclusions. Here are some examples of situations where you may not be eligible for cover or where your claim may be denied.

Common travel insurance exclusions

• Participating in an unapproved, high-risk sport or activity that you don’t have specialist or additional travel insurance cover for (e.g. going snowboarding, visiting a volcano, trying bungee jumping).
• Having a pre-existing medical condition and not disclosing it to your travel insurance provider – this can often result in not being covered for any claims related to the condition. However, keep in mind that some providers may cover certain pre-existing conditions, so check if you are unsure.
• Leaving belongings unattended, and them becoming lost, damaged or stolen.
• Participating in an illegal activity, engaging in reckless behaviour, using drugs or being intoxicated.
• Travelling to a destination when there are travel warnings in place from the Australian Government. Visit the Smartraveller website before you go to check active travel warnings.
• Being impacted by an act of war, terrorism or civil unrest.

Before you take out a travel insurance policy, it’s a good idea to check the Product Disclosure Statement (PDS) and Target Market Determination (TMD). If there is anything you are unsure about or if you have any general questions, speak to your insurance provider for details.

Related: Travel insurance and COVID-19: Are you covered?

What do insurers consider a family?

Insurance providers commonly define a ‘family’ as the policyholder, their spouse or de facto partner, and any dependants, provided all of these people are listed on the policy. Some policies set limits on the number of kids you can list on your policy, while others have no limits, making them potentially more suitable for larger families.

If you’re travelling with multiple families or your family is particularly large, you might also want to consider group travel insurance, which typically offers cover for up to 25 people under a single policy. If you are a single parent, any dependent children you’re travelling with may be covered under your singles policy, rather than requiring a family policy.

Can you travel alone on family travel insurance?

Generally, if you have family travel insurance and you are named as one of the policyholders, you will likely be covered even if you are travelling alone (such as if you take a short solo trip while the family is on holiday or if you purchased a multi-trip pass). It is a good idea to check with your insurance provider to find out about any possible exclusions in your policy for solo travel.

Does family travel insurance cover pregnancy?

Some travel policies provide pregnancy cover for travel in the first two trimesters of pregnancy, while others have tighter restrictions. Very few travel policies on Canstar’s database cover expenses associated with childbirth or care of a newborn even in the case of a premature birth, so it’s important to compare policies and read the fine print. It is also a good idea to speak with your doctor before planning to travel while pregnant.

Does travel insurance cover a child who is travelling separately?

If your child is eligible to be listed on a family policy, but is going on a separate trip to the rest of the family (such as away with friends), they may not be covered by a family travel insurance policy. Canstar has found that many family travel insurance policies do not cover a child if they travel without their parent, guardian or other carer. The maximum age of a dependent child can also vary, depending on your policy.

→ Discover more: Travel insurance for children

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Additional reporting by Shay Waraker.

Cover image source: Sunny Studio/Shutterstock.com