Australian family out of pocket $120,000 after son slips getting out of hot tub

A family forced to pay $120,000 after a teenager slipped and broke their arm while getting out of a hot tub on a US trip is just one of many horror stories that experts say prove that travel insurance in essential when holidaying.

While the increased cost of living means Australians are increasingly cutting out expenses where possible, Southern Cross Travel Insurance (SCTI) warns that travel insurance is not something that can be sacrificed.

New SCTI data reveals 2.4 million Australians said they won’t purchase travel insurance as a way to save money.

“While slip and fall accidents might seem inconsequential at first glance, they can lead to hefty medical bills, especially in foreign countries where healthcare costs can be exorbitant,” an SCTI spokesperson said.

“Likewise, lost luggage can disrupt travel plans and result in unexpected expenses for replacing belongings.”

Simple accidents can lead to large medical costs, for example, a traveller in Fiji recently fell and broke their hip — resulting in medical care and an air ambulance back home totalling $160,000.

In another incident, a traveller broke their sacrum (a bone connected to the pelvis) in a surfing accident and required an urgent internal transfer to a better hospital, surgery, and a business class flight upgrade back to Australia totalling $79,500.

A moped accident left another traveller with a $73,000 claim, while an e-scooter accident left a tourist with a $69,000 bill.

Lost baggage and journey cancellations are also common, expensive claims.

A traveller was left with a $7000 claim after their father suffered a stroke, and they needed to cancel their trip.

Another traveller had their luggage stolen when their car was broken into, resulting in a $5000 claim.

“Many Australian travellers underestimate the potential costs associated with common travel mishaps,” SCTI CEO Jo McCauley said.

“From minor medical incidents to lost luggage, the expenses can quickly add up, leaving travellers in a precarious financial situation.

“Investing in travel insurance is a simple yet crucial step in safeguarding against these unforeseen expenses.”

In 2023, the average cost of International Medical Only policies SCTI sold to Australian customers was $266.61 while the average claim cost was $2,478.82.

“By ensuring they are adequately covered, travellers can enjoy peace of mind knowing they are protected against the unexpected,” the SCTI spokesperson said.

“The approximate cost for a travel insurance policy for a one-week trip to Fiji for two adults aged 40 and two children is $134.79 for International Comprehensive cover with Southern Cross Travel Insurance.

“The approximate cost for Medical Only cover for the same trip would be $80.64.”