How Terrorism Affects Your Travel Insurance

Given the number of recent terror attacks, those planning for holidays should be aware of what their travel insurance actually covers.

According to Tilly South from consumer group Choice, terrorism is a divisive issue when it comes to travel insurance, with many insurers excluding expenses resulting from an attack. For example, restriction on cancellations and delays which are a consequence of a terror attack are largely not covered by insurers.

"Most of the insurers will cover medical expenses, but very few will actually cover cancellation expenses in the event of terrorism," South said.

"It's always worth checking your policy to see exactly what you're covered for before you head off. It's something you really don't want to skimp on.

"Medical expenses could be hundreds of thousands of dollars, depending on what needs to be done."

Insurers are also recognising which countries demonstrate a higher risk level, which is reflected in the policies on offer.

"They'll give you information about which countries are the 'do not travel' countries and most insurers won't cover you for those countries," South said.

"The other thing that's really important to note is that the earlier you buy your travel insurance, the better your cover is going to be. 

"It does pay to spend five minutes looking at the policy and then also take a look at the Department of Foreign Affairs (DFAT) website at Smartraveller."

Choice also provide free travel insurance comparisons on their website, which can be found here.