10 Things Backpackers Should Know About Travel Insurance

October 13, 2022 Michael Caine

In Australia, backpacking is practically a rite of passage. When you reach your 20s or 30s, you better invest in a reliable backpack because many people will invite you to go on adventures. Whether hiking or glamping through countries, backpacking can give you unique experiences. The most important thing is you’re protected from any unfortunate event.

“It doesn’t matter how far you want to go. Travel insurance is a must. While no policy can cover all circumstances, many of them are designed to protect you from common problems backpackers encounter. You can add more benefits if you’re planning to try high-risk activities or places.” says business analyst and small business loan provider Shane Perry of Max Funding.

What if anything goes wrong on your vacation and you’re left with nothing except your savings—or your parents’ savings? Sure travelling and exploring the world is fun, but things can go wrong sometimes.

So the next time you travel, make sure you have travel insurance to get your back.

Here are the ten essential pieces of information you need to know about travel insurance.

1. Travel Insurance Is for Different Types of Backpackers

A backpacker’s insurance can provide cover for people who are:

On a working holiday
Studying overseas or taking a gap year
Travelling during study breaks
Travelling for the snow season
Volunteering overseas

2. What Are Covered by Backpacking Travel Insurance?

This type of insurance assists during emergencies while you’re backpacking overseas for a few weeks to 2 years.

Basic travel insurance covers the medical expenses in case you get sick or injured while backpacking. It also provides emergency transport if necessary. You can also upgrade the plan and include coverage for cancellations and lost or damaged personal belongings (everything in your backpack!).

Sometimes, holidays get extended due to specific reasons. So, it’s better to purchase add-on coverage such as rental vehicle excess insurance, travel delay expenses, loss of income, etc.

Consider getting special coverage if you plan skiing, snowmobiling, or heli-skiing this year. There’s also an adventure package for those who are into adrenaline-pumping activities such as paragliding and scuba diving. Fast Cover offers customisable policies to fit your current needs.

3. How Much Is Backpacker’s Travel Insurance?

The premium may vary according to the following factors:

Type of Policy. More coverage typically means higher fees. Try to be as specific as possible with your itinerary to ensure you have the right coverage.

Duration of Your Trip. The longer your adventure is, the longer you’re exposed to risk. You may want to consider a more flexible coverage for longer trips.

Destination. Some destinations come with certain risks. Also, a backpacker’s itinerary tends to change, so consider a policy that can protect you anywhere you go.

Activities. Special coverage for high-risk activities usually has higher premiums.

Age. Some insurance policies are created for particular age brackets.

4. Can You Get Travel Insurance Even When Already Abroad?

Don’t worry about forgetting to get backpacker travel insurance before leaving Australia. You can still buy an Already Overseas Policy as long as you’ve been overseas for less than 14 days or if your travel insurance expired while you’re in the middle of backpacking.

5. Is It Possible to Have Coverage for Multiple Trips?

Processing insurance for multiple trips within 12 months can be tiresome. Buying the Frequent Traveller Saver is a cost-effective way to deal with this. However, the maximum duration for each trip under this policy is only 63 days. You are required to return to Australia after each that.

6. What If You Have A Pre-Existing Condition?

Your medical history may affect your travel insurance cover. Medical assessments can take time, and you’ll want to get the coverage as soon as possible. Thankfully, Fast Cover’s travel insurance automatically covers 43 pre-existing conditions, provided that you haven’t been hospitalised in the past 24 months and didn’t get a new prescription in the past six months.

With this travel policy, you have peace of mind knowing you have something to rely on if you need medical help while backpacking.

7. What is EIC travel insurance for Canada?

You need this insurance policy if you’re heading to Canada on the International Experience Canada (IEC) program. The Canadian immigration office requires IEC participants to obtain medical, hospital, and repatriation expenses coverage. The insurance can cover you for one year and can be extended for another year. You can also get additional protection from travel delays, cancellations, and loss of luggage, travel documents, and credit cards.

Canada’s healthcare coverage for foreigners affected by COVID-19 has been extended. You can get more information here.

8. What If I Haven’t Decided Where to Go Yet?

You can choose a policy based on your first choice of destination. Once you’ve decided where to go, call or email your insurance provider to discuss the details.

Fast Cover offers a Worldwide policy that provides coverage for any country you decide to travel to. These are classified into Level 1 (exercise standard safety precautions) or Level 2 (exercise a high degree of caution).

9. What Is the Best Travel Insurance for Backpackers?

The best travel insurance policy is the one that perfectly suits your destination, activities, medical condition, and age. If you’re not planning to engage in any risky activity, such as skiing, purchase coverage is no need. If you’re planning to travel to unfamiliar territory and sleep in a tent, getting additional benefits for lost or damaged items would be wise.

Therefore, research and planning are essential before deciding what policy to acquire.

10. What Is NOT COVERED by A Travel Insurance Policy?

Any unfortunate incident that happened in a place or activity that’s not specified in the policy is not covered. If you’re unsure if the site or activity is within coverage, check with the insurance provider before doing anything.

You also won’t have coverage for breaking the law, intoxication, visa denial, sexually transmitted infections, and destination exclusions as specified by the Australian Government.

Spend a little more on your travel by getting insurance to avoid huge expenses in the future!