What does travel insurance cover?

Travel insurance can cover the financial costs of a wide range of unforeseen accidents or incidents on your trip.

Among the most important benefits provided by Budget Direct travel insurance are:

  • Overseas medical and hospital expenses – an unlimited amount for the cost of unforeseen emergency medical and hospital treatment overseas (excluding pregnancy and childbirth). Read more
  • Cancellation and amendment fees – the cost of pre-paid travel, accommodation, etc. in case you’re forced to call off or reschedule your trip due to an insured event (e.g. an unforeseen illness or injury). (Does not apply to Last Minute cover.) Read more
  • Luggage and personal effects – the cost of repairing, replacing or reimbursing you for your belongings if they are lost, stolen or damaged (sub-limits apply).
  • Additional expenses – extra travel, accommodation and meals expenses – over and above what you budgeted for – if your trip is disrupted or cut short due to an insured event.

For full details, including the terms, conditions, limits and exclusions that apply, please read the product disclosure statement.

See all Budget Direct travel insurance benefits and features

Which countries does Budget Direct travel insurance cover?

The following table shows the regions and countries covered by Budget Direct travel insurance:

Pacific
Includes American Samoa, Cook Islands, Fiji Islands, French Polynesia (including Tahiti), Kiribati, New Caledonia, Niue, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu, New Zealand, Papua New Guinea; and domestic cruises within Australian territorial waters.
Asia
Includes Bangladesh, Brunei, Cambodia, China, Hong Kong, India, Indonesia, Japan, Laos, Malaysia, Maldives, Myanmar, Nepal, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, and Vietnam only.
Europe/Africa
Includes countries in Africa, Europe, Scandinavia, the Middle East, the Caribbean, and Russia.
Americas
Includes United States of America, Canada, Mexico, Central and South America and Antarctica (Antarctic cruises only).
Not covered
We do not cover travel to countries:
  • the Australian Government advises people not to travel to (i.e. countries rated ‘Level 4 – Do not travel’). To find out the risk rating of your destination/s, visit the federal government’s Smartraveller website.
  • 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.

Terms, conditions, limits and exclusions apply. For full details, please read the product disclosure statement.

Does travel insurance cover illness or injury abroad?

Yes – Budget Direct travel insurance can cover claims resulting from a sudden and serious illness or injury suffered by you, a person 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).

For example, you can lodge a claim for one or more of the following:

Note that we will not cover any claims related to any pre-existing conditions (excluding the 27 we do cover and which you have told us about).

These include medical conditions for which, during the 90 days before your policy’s start date, you or another person:

  • needed surgery, inpatient treatment or hospital consultations
  • needed any treatment or prescribed medication
  • were on a waiting list for, or needed surgery, inpatient treatment or tests at, any hospital or clinic
  • were diagnosed with a terminal condition (that will cause death)

We can still cover you for claims not related to any of these conditions.

Does travel insurance cover death abroad?

Yes – Budget Direct travel insurance can cover claims resulting from your sudden death or that of a person 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 they die).

For example, you can lodge a claim for one or more of the following:

  • cost of returning your body or ashes to Australia; or the funeral expenses in the country in which you die (outside Australia)
  • cancellation and amendment fees (except Last Minute policy)
  • cost of cutting your trip short (except Last Minute policy)
  • additional expenses
  • personal accident, if you die within 12 months of injuries sustained on your trip (except Essential and Last Minute policies).

Note that we will not cover any claims related to any pre-existing conditions (excluding the 27 we do cover and which you have told us about).

These include medical conditions for which, during the 90 days before your policy’s start date, you or another person:

  • needed surgery, inpatient treatment or hospital consultations
  • needed any treatment or prescribed medication
  • were on a waiting list for, or needed surgery, inpatient treatment or tests at, any hospital or clinic
  • were diagnosed with a terminal condition (that will cause death).

We can still cover you for claims not related to any of these conditions.

Does travel insurance cover medical and hospital expenses overseas?

All four of Budget Direct’s international travel insurance policies – Comprehensive, Essential, Last Minute, and Annual Multi-Trip – include an unlimited amount for overseas medical and hospital expenses, including:

  • ambulance and emergency medical, surgical and hospital costs
  • cost of your return to Australia earlier than planned if this is medically necessary and we authorise it
  • if you cannot return to Australia as you originally planned and if it is medically necessary and we authorise it, we will pay for reasonable travel and accommodation expenses:
    • to allow you to return to Australia, and
    • for someone to stay with you and travel home with you, or
    • for one relative or friend to travel from Australia to stay with you and travel home with you
  • cost of returning your body or ashes to Australia (up to $20,000) or cost of a funeral and burial in the country in which you die (up to $10,000).

This cover excludes any claims arising from pre-existing medical conditions (other than the 27 we cover).

Note that, if you suffer an illness or injury that requires emergency transportation, hospitalisation or repatriation and/or is likely to cost more than AUD$500 to treat, you (or someone else on your behalf) must contact us as soon as possible.

Our Domestic policy does not include cover for medical and hospital expenses, as these expenses are already claimable in Australia from Medicare and/or your private health fund.

Does travel insurance cover medical expenses in Australia?

In contrast to our international travel insurance policies, our Domestic policy does not cover emergency medical or hospital expenses.

That’s because these expenses are claimable in Australia from Medicare and/or your private health fund.

Which sports and activities does travel insurance cover?

Budget Direct travel insurance includes cover for more than 90 sports and activities and optional cover for more than 12 snow sports.

Does travel insurance cover skiing?

For an additional premium, you can add optional Snow Sports Cover to your Budget Direct international or domestic travel insurance policy.

Among other things, Snow Sports Cover can insure you for snow sports equipment, ski packs, lift hire, and piste closures.

Read more about ski travel insurance

Does travel insurance cover cruises?

All of our international travel insurance policies automatically cover cruises in international, Australian and other territorial waters.

This cover includes overseas emergency medical and hospital expenses which, once your ship leaves Australian shores, are not covered by either Medicare or your private health insurer.

Read more about cruise travel insurance

Does cruise travel insurance cover time on land?

Yes – shore excursions of up to 48 hours are automatically covered; any longer, and the stopover destination must be listed on your policy.

Just in case, we recommend you list all destinations your cruise is scheduled to dock at.

Read more about cruise travel insurance

Does travel insurance cover evacuation or repatriation?

Yes – depending on your specific needs, Budget Direct can coordinate your evacuation to the nearest suitable medical facility or your repatriation back home to Australia – subject to an assessment and approval by us.

Read more about our overseas medical and emergency assistance service

Does travel insurance cover gadgets?

All Budget Direct travel insurance policies except Last Minute can cover the cost to repair or replace (less depreciation) your damaged or lost gadgets and other valuables (see table below).

Luggage and personal effects Comprehensive, Annual Multi Trip Essential, Domestic Last Minute
TOTAL Up to $7,500 Up to $5,000 Up to $2,500
Sub-limits      
Per item / pair or set of items Up to $750 Up to $500 Up to $500 (non-valuables only)
Valuables – laptops, tablets, cameras and video cameras, mobile phones Up to a combined total of $3,000 Up to a combined total of $2,000
Valuables – other Up to a combined total of $750 Up to a combined total of $750
Property (including specified items) lost or stolen from an unattended motor vehicle Up to a combined total of $500 Up to a combined total of $500 Up to a combined total of $500

If you’re a Comprehensive or Annual Multi-Trip policyholder, you can get more cover for your luggage and personal effects

Does travel insurance cover mobile phones?

Yes – all Budget Direct policies except Last Minute include cover for mobile phones.

For more details, including the terms, conditions, limits and exclusions that apply, please see the ‘Luggage and Personal Effects’ section of the product disclosure statement.

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. Read more

Does travel insurance cover cancelled flights?

All Budget Direct travel insurance policies except Last Minute can cover the cost of your pre-booked flights if you’re forced to cancel your trip before it begins due an insured event (e.g. an unforeseen illness or injury).

Keep in mind we do not cover the cost of flights cancelled due to an event within the airline’s control (e.g. crew shortage, delayed inbound flight).

Instead, the airline may rebook you on the next available flight to the same destination; or give you a refund.

Read more about travel insurance and missed flights

Does travel insurance cover delayed flights?

All Budget Direct travel insurance policies except Last Minute can cover your reasonable extra meals and accommodation expenses if your outward or return flight is delayed due to poor weather, natural disaster, strike, industrial action or mechanical breakdown.

We can pay you $100 for every 12 hours you’re held up, up to $2,000 (Comprehensive, Annual Multi-Trip); or $50 for every 12 hours you’re held up, up to $1,000 (Essential, Domestic).

If you have Comprehensive or Annual Multi-Trip cover, we can pay for extra kennel or cattery fees if your inward journey is delayed due to one of the reasons mentioned above.

We can also pay for alternative transport to get you to a planned event (e.g. a wedding, funeral, conference, sports fixture) you would otherwise miss due to your scheduled transport being delayed (or cancelled, shortened or diverted) (except Last Minute) due to an insured event.

Make sure you get a written statement from the relevant transport company or authority confirming the reason for the delay and how long it lasted.

Does travel insurance cover natural disasters?

Yes – Budget Direct travel insurance can cover natural disaster claims for events (e.g. floods, earthquakes, tsumanis, and volcanic eruptions) that were not public knowledge before you bought your policy.

Among the benefits you can claim are:

Terms, conditions, limits and exclusions apply. For more information, please read the Product Disclosure Statement.

Does travel insurance cover terrorism?

Yes – Budget Direct travel insurance can cover claims resulting from unforeseen terrorist attacks.

Among the benefits you can claim are:

  • overseas medical and hospital expenses, including any medically necessary costs to return you to Australia
  • cancellation and amendment fees due to travel restrictions being imposed on you after a terrorist attack (except Last Minute policy)
  • additional expenses to return home early due to a terrorist attack in Australia that results in serious damage to your home or business premises, or serious injury or death of your or your travelling companion’s relative (who is a resident of Australia).

Does travel insurance cover bad weather?

Yes – depending on your level of Budget Direct travel insurance, you may be able to claim:

  • cancellation and amendment fees if, 48 hours or less before your departure date, your home or place of business is damaged by a storm or flood, requiring you to stay in Australia (excluding Last Minute polic
  • travel delay expenses incurred if your outward or return trip by air or sea is held up by more than 24 hours due to severe weather (excluding Last Minute policy
  • cost of extra kennel or cattery fees resulting from the abovementioned delays (Comprehensive and Annual Multi-Trip policies only).

Does travel insurance cover mechanical breakdown?

Yes – if your aircraft or sea vessel is delayed for at least 12 hours, you can claim:

  • travel delay expenses (excluding Last Minute policy)
  • cost of extra kennel or cattery fees resulting from the abovementioned delay (Comprehensive and Annual Multi-Trip policies only).  

Does travel insurance cover lost or stolen credit cards?

Yes – Budget Direct can pay you up to $5,000 (Comprehensive, Annual Multi-Trip) or $2,500 (Essential) to replace your lost, stolen or damaged credits cards (does not apply to Last Minute and Domestic cover).

This cover applies only to cards either carried with you or locked in a safety deposit facility.

Unauthorised use of your credit (or debit) card is not covered.

(This cover also applies to your passport, visas, travel money cards and traveller’s cheques; our Last Minute and Domestic policies do not include cover for these items.)

Does travel insurance cover stolen cash?

Yes – upon acceptance of your claim, Budget Direct will replace up to $400 (Comprehensive, Annual Multi-Trip) or up to $250 (Essential, Domestic) of your stolen cash.

Note that you’ll have to pay the first $200 of the claim as an excess (unless you’ve opted to have the excess reduced or removed).

Our Last Minute policy does not cover theft of cash.

Does travel insurance cover rental / hire cars?

All Budget Direct’s travel insurance policies except Last Minute include cover for any rental-car insurance excess you become liable to pay.

The excess is the amount you’re required to pay towards a claim for any loss or damage to the rental car while it’s in your possession (it’s also known as a ‘damage liability fee’).

While it’s designed to limit your financial liability for the loss or damage, the excess can still be as much as several thousand dollars.

Our ‘Rental vehicle insurance excess’ benefit — ranging from up to $4,000 (Essential, Domestic) to up to $6,000 (Comprehensive, Annual Multi-Trip) — can cover most, if not all, of your liability.

(Even if you’re covered by us, you should still read your rental car agreement, so you’re aware of its terms and conditions and any exclusions.)

Does travel insurance cover scooters and motorbikes?

Budget Direct policyholders can be covered for claims arising from two- and three-wheeled motor vehicles, as long as:

As the driver or passenger:

  • you are wearing a helmet (regardless of the law of the country you’re in)

As the driver:

  • you hold a licence appropriate for the country you’re in
  • if using a motorcycle rated 125cc or higher, you hold a licence for driving the equivalent-rated motorcycle in Australia.

Does travel insurance cover personal liability?

Yes – Budget Direct can pay up to $5 million (Comprehensive, Annual Multi-Trip), up to $2 million (Essential), up to $1.5 million (Domestic) or up to $1 million (Last Minute) if you’re held legally liable for accidentally injuring someone else or damaging or losing someone else’s property during your trip.

If I get into trouble overseas, will I be able to get help?

Yes – all Budget Direct’s international travel insurance policyholders get access to a worldwide, 24/7 network of medical and emergency assistance providers.

These include multilingual medical and travel specialists, including about 500 doctors in 34 countries.

Whether you get sick or injured, lose your travel documents or credit cards, or are robbed, assaulted or arrested, we can get you the help you need.

Note that, if you suffer an illness or injury that requires emergency transportation, hospitalisation or repatriation and/or is likely to cost more than AUD$500 to treat, you (or someone else on your behalf) must contact us as soon as possible.

Read more about our overseas medical and emergency assistance service

What does travel insurance not cover?

There are some incidents and circumstances Budget Direct travel insurance does not cover – these are called ‘exclusions’.

Read more about what Budget Direct travel insurance does not cover

Get a travel insurance quote online