Protect Your Trip Down Under Visitor Insurance for Australia Explained

Protect Your Trip Down Under: Visitor Insurance for Australia Explained

Why You Need Visitor Insurance for Australia

Medicare in Australia's healthcare system does not cover most temporary guests. You may be liable for expensive medical expenditures if you become sick or injured. Out of pocket, a brief hospital stay might run thousands of dollars. Finder's research highlights the growing healthcare expense by showing the average cost of travel insurance rising by 87% from before the epidemic. With an average cost of $156.28 in 2024, a notable increase from the $84.10 price in 2019, it is a complete travel insurance policy. This emphasizes the need to budget for travel insurance while organizing your vacation. According to a December 2023 Finder poll, 78.96% of respondents said they did not buy travel insurance on their most recent trip, suggesting a possible knowledge vacuum on the financial dangers of flying uninsured.

Types of Visitor Insurance

Two primary forms of visitor insurance available in Australia are

Overseas Visitors Health Cover (OVHC): This type of health insurance is designed for visitors. It covers hospital stays, doctor visits, and some ambulance costs. Some OVHC policies also offer extra coverage for dental, optical, and physiotherapy services, although these often come with waiting periods and out-of-pocket expenses. It's important to note that policies vary significantly in price, benefits, and eligibility. Check if your visa requires a specific type of OVHC. Australian Unity, HBF, Bupa, HCF, and nib are some examples of providers offering OVHC. AIA specifically notes that their OVHC complies with the 8501 visa condition for several visa subclasses, highlighting the importance of visa requirements when choosing cover.

Travel Insurance: This broader type covers travel-related issues, including medical emergencies, trip cancellations or interruptions, lost luggage, and flight delays. Several providers, like Budget Direct and Qantas, offer travel insurance for Australia. Some credit cards offer complimentary travel insurance but review its coverage limitations and exclusions. According to Budget Direct, travel insurance can cover COVID-19-related medical expenses, cancellation costs, and additional expenses due to self-isolation, but exceptional excesses and conditions apply. CHOICE compares over 95 travel insurance policies, allowing for comparisons based on price, features, and expert ratings.

Reciprocal Medicare Agreements

Australia has Reciprocal Medicare Agreements with various nations, including the UK, New Zealand, and certain European countries. Should you be from one of these nations, public hospitals could provide some medically required care. However, this coverage is sometimes restricted and excludes extras, private hospital treatment, and ambulance services. Still highly advised is having OVHC or travel insurance for full coverage. Depending on your residence status for tax purposes, HBF cautions that even with a reciprocal agreement, you might have to pay the Medicare Levy Surcharge if you earn beyond a specific income level.

Medicare Levy Surcharge (MLS)

Should you not have private hospital cover, you may have to pay the Medicare Levy Surcharge (MLS) if you are employed in Australia and earn above a particular salary level. Encouragement of private health insurance is achieved via the MLS tax penalty.

Tips for Choosing Visitor Insurance

Compare policies carefully: Look at the benefits, limits, exclusions, and waiting periods.

Check your visa requirements: Ensure your insurance meets any necessary conditions.

Consider your health needs: Think about your medical history and potential risks.

Read reviews and compare prices: Use resources like Canstar, CHOICE, and Finder to find the best value for your needs.

Declare any pre-existing conditions: Be honest about your health to avoid claim rejections.

Key Things to Consider

Length of stay: Travel insurance may adequately cover shorter visits, while longer stays necessitate OVHC.

Activities: If you plan on participating in adventure sports, ensure your policy covers these activities.

Budget: Balance the insurance cost with the coverage level you require.