Does travel insurance cover trip cancellation?

All Budget Direct travel insurance policies except Last Minute can cover the cost of cancelling (or amending) your trip due to an insured event, for example:

  • an unforeseen illness, injury or death suffered by you, someone you’re booked to travel with, or a close relative or business associate (who is a resident of Australia and in Australia at the time the event occurs)
  • you being made redundant unexpectedly
  • a need for you to stay in Australia due to a fire, storm, flood or burglary at your home or place of business within 48 hours of your scheduled trip departure date
  • your inability to travel due to travel restrictions being imposed on you after an epidemic, terrorist attack, or natural disaster.

We can pay you up to the maximum benefit you’re entitled to for travel, accommodation, pre-paid meals, tours, activities and visas you’ve either paid for or agreed to pay for under a contract, and which you cannot recover from any other sources.

Alternatively, we can cover the expense of amending your trip before you depart, as long it does not exceed the cost of cancelling your trip.

Does travel insurance cover cancellation due to illness, injury or death?

Yes – all Budget Direct policies except Last Minute can cover cancellation (or amendment) of your trip due to an unforeseeable illness, injury or death suffered by you, someone you’re booked to travel with, or a close relative or business associate  (who is a resident of Australia and in Australia at the time the event occurs).

Does travel insurance cover cancellation due to travel warnings or restrictions?

Yes – all Budget Direct travel insurance policies except Last Minute can cover the cost of cancelling (or amending) your trip if, as a result of an epidemic, terrorist attack or natural disaster in a country on your itinerary:

  • travel restrictions are imposed for that country, or
  • the Australian Government raises the risk rating for that country to ‘Level 4 – Do not travel’.

If your trip has not yet commenced

Your travel agent might be able to help you amend your travel arrangements for no extra cost.

If that’s not possible, you can lodge a claim for cancellation fees if the travel restrictions are imposed or the ‘Do not travel’ rating is published after your policy has been issued and before the departure date on your insurance certificate.

If you’re currently travelling

If you were already in the country when the travel restrictions were imposed or the ‘Do not travel advice was issued, your travel agent might be able to help you amend you travel arrangements for no extra cost.

If that’s not possible, you can lodge a claim for any additional expenses incurred due to disruptions and delays or cutting your trip short.

Travel advice

To find out the risk rating of your destination/s, visit the federal government’s Smartraveller website.

In addition to government travel advice, you need to be aware of our related travel alerts.

Note that we will not cover claims resulting from a policyholder travelling in, to or through a country after it was added to the Australian Government’s ‘do not travel’ list.

In addition, we do not cover travel to countries:

  • subject to an embargo from the UN Security Council or any international organisation to which Australia belongs
  • involved in international conflicts or interventions involving the use of force or coercion.

Does travel insurance cover cancellation due to work?

There are two work-related scenarios under which Budget Direct travel insurance policyholders (except those with Last Minute policies) can make a cancellation claim:

  • you’re made redundant by your employer, as long as:
    • you’re entitled to a redundancy payment under current laws, and
    • at the time you booked your trip you had no reason to believe you would be made redundant.
  • you, your relative or travelling companion are a member of the armed forces, police, fire, nursing or ambulance services and must stay in Australia due to an emergency or you’re posted overseas unexpectedly.

Does travel insurance cover cancellation due to a natural disaster?

Yes – all Budget Direct policyholders (except those with Last Minute cover) can lodge a claim for cancellation or amendment fees if, as a result of a natural disaster in a country on your itinerary:

  • travel restrictions are imposed for that country, or
  • the Australian Government raises its risk rating for that country to ‘Level 4 – Do not travel’.

Read more

Does travel insurance cover cancellation due to a disease outbreak?

Yes – all Budget Direct policyholders (except those with Last Minute cover) can lodge a claim for cancellation or amendment fees if, as a result of a disease outbreak, or epidemic, in a country on your itinerary:

  • travel restrictions are imposed for that country, or
  • the Australian Government raises the risk rating for that country to ‘Level 4 – Do not travel’.

Read more

Does travel insurance cover cancellation due to a terrorist attack?

Yes – all Budget Direct policyholders (except those with Last Minute cover) can lodge a claim for cancellation or amendment fees if, as a result of a terrorist attack in a country on your itinerary:

  • travel restrictions are imposed for that country, or
  • the Australian Government raises its risk rating for that country to ‘Level 4 – Do not travel’.

Read more

Does travel insurance cover cancellation due to a sick pet?

No – all Budget Direct policies except Last Minute include cover for cancellation due to unforeseen illnesses and injuries sustained by you, someone you’re booked to travel with, or a close relative or business associate (who is a resident of Australia and in Australia at the time the event occurs).

However, we do not cover cancellations related to sick dogs, cats or other pets.

Does travel insurance cover travel agents' cancellation fees?

Yes – Budget Direct can pay up to 10% of the amount paid to the travel agent or $1500 per adult (whichever is the lesser) if you’ve paid the agent the full amount owing or the maximum deposit at the time you cancel your trip.

(This is unless you have a Last Minute policy, which does not cover cancellations.)

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