Travel insurance is one of those insurance products that New Zealanders think they can take a DIY approach. It’s often an afterthought, they assume it’s easy to buy, and it’s often not fully understood until it’s too late. But a little foresight can save a lot of stress and money if things go wrong while you’re away.
Travel issues are not as uncommon as you may think. Canstar research found 18% of respondents had experienced a travel disaster. Of those: 34% had missed a flight, 33% had lost luggage and 30% needed to receive medical treatment while travelling.
To help you get the protection you need, we’re breaking down the five biggest travel insurance mistakes New Zealanders make, and how to avoid them.
1. Leaving it too late
Delaying the purchase of travel insurance until right before departure is one of the most common mistakes Kiwi travellers make. What many don’t realise is that the benefits of travel insurance start as soon as you buy your policy!
If you need to cancel your trip due to illness, injury, or a family emergency before you even leave, you’re only covered if your policy is already in place. Waiting too long can mean missing out on cancellation cover, leaving you out of pocket for flights, accommodation, or pre-paid activities.
Our recommendation is simple: buy travel insurance at the same time as booking your trip. That way, you’ll be protected from unexpected events that could derail your plans before take-off.
2. Not declaring pre-existing medical conditions
When it comes to travel insurance, honesty really is the best policy. Unfortunately, Steadfast notes that between 16% and 19% of travellers either fail to declare their medical issue or don’t bother checking to see if their travel insurance could cover it.
Insurers assess your health risk based on the information you provide at the time of purchase. If you don’t declare a pre-existing condition, even one that seems minor or unrelated, any claim that’s even remotely connected to that condition could be denied.
Many insurers will still offer cover for pre-existing conditions, either automatically, for an additional premium, or with specific exclusions. Conditions like asthma, high blood pressure, or epilepsy often won’t affect your ability to get cover, but your insurer still needs to know about them.
3. Assuming you’re covered for everything
It’s easy to assume your travel insurance has you covered for any mishap that comes your way, but that’s not always the case. From skiing in Queenstown to scuba diving in Fiji, us Kiwis love a bit of adventure. But many policies don’t automatically cover high-risk or adventure activities. If you’re injured while doing something your policy excludes, you could be left footing the bill.
Travellers also often assume they’re covered for all delays or lost luggage, only to have a claim denied because the bag was left unattended or the delay didn’t meet the policy’s criteria. The point here being: don’t skim the fine print. Read your policy carefully, especially the exclusions, limitations, and claims process.
If you’re planning on anything that could be considered “adventurous,” check that your activity is listed in the cover. Insurance jargon can be confusing, so if you’re unsure, talk to your insurance adviser before you leave.
4. Choosing the cheapest policy instead of the right policy
It’s tempting to choose a low-cost travel insurance policy, especially when you’ve already spent a lot on flights and accommodation. But cheap cover can often mean minimal benefits, and expensive surprises at claim time.
Some budget policies have low limits for medical expenses, cancellations, or baggage cover, while others may have high excesses or significant exclusions hidden in the fine print. Getting a policy lacking in coverage defeats the purpose of taking out travel insurance in the first place.
Focus on value, not just price. Choose a policy that suits the specifics of your trip, including your destination, trip length, and planned activities. For example, heading overseas for a major sporting event may involve multiple flights and tight travel schedules, all of which can increase the risk of delays or missed connections. The event itself could also be postponed or cancelled. That kind of trip would require different cover than a beach holiday, where plans might be more flexible.
If you can only afford a budget policy, make sure it covers medical expenses and personal liability in case you accidentally injure someone or damage something.
Most insurers include a table of benefits which describes what is covered in each policy, including the associated excess and benefit cap, which is the maximum amount paid out for each benefit.
5. Purchasing travel insurance without expert advice
These costly mistakes can be avoided if you chat with an insurance advisor before taking out a policy. At Moneybox, our general insurance advisors can help you find the right cover so you’re not paying too much or being left without enough.
Need travel insurance for your next adventure? Talk to our team today to find a policy that suits your plans and budget.
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Our bonus travel insurance tips
1. Pay by credit card for extra protection
If your airline, tour operator, or travel agent goes bust, your travel insurance may not cover you. However, if you paid with a credit card, you may be eligible for a chargeback. This lets you recover your money if the service isn’t delivered. But act fast, as most banks require you to file a chargeback within 120 days of the transaction.
2. Allow extra time for flights
Running late is one of the most avoidable travel mishaps. Arrive at the airport early (especially during busy periods) and allow at least a two-hour layover for connecting flights. This gives you a buffer if your flight is delayed, and time to clear security without stress.
3. Be prepared when making a claim
If something goes wrong, contact your insurer as soon as possible, especially for serious issues like medical emergencies. Begin collecting evidence immediately:
– Medical: Get a report from the overseas practitioner, keep receipts, and take photos if relevant.
– Theft or damage: Report it to the local police or your travel provider within 24 hours and get written documentation.
– Lost or delayed luggage: Take photos of your bags and contents before you travel and consider placing a tagging device in each of your bags, like an Apple AirTag.
– Rental vehicle claims: Keep the rental agreement, incident report, and repair invoice, and take photos of any damage.