Going on a big trip? What travel insurance may not cover when plans unravel
Travel insurance can be vital—yet the fine print matters
Travel insurance is often marketed through simple headline benefits: trip cancellation, lost luggage, delayed flights, emergency medical costs. But when a major disruption hits—such as a conflict affecting air routes or a natural disaster changing conditions on the ground—those headline promises can collide with exclusions buried in the policy wording.
Recent flight cancellations and lengthy delays linked to the conflict in the Middle East have been a sharp reminder that travellers may face sudden changes to routes and schedules. Even as operations in places such as Dubai and Qatar resumed and airspaces reopened, the episode has highlighted a basic reality: it pays to know exactly what your travel insurance does—and does not—cover before you leave home.
Insurance experts say many people buy travel insurance assuming that paying a higher premium means broader protection for “anything outside your control”. In practice, policies can draw firm lines around certain events, and those lines may apply regardless of how comprehensive the product appears.
A traveller’s experience: refunded flight, but extra costs still out of pocket
Wendy thought she had done the right thing. Weeks before the conflict escalated in the Middle East, she bought travel insurance for her adult son, Christopher, ahead of a major trip. The family had no reason to suspect that a transit route used by large numbers of passengers every day could become complicated by events far beyond an individual traveller’s influence.
Christopher had won a European holiday. But he was unable to board his connecting flight to Doha. Although he received a full refund for the cancelled ticket, he was told he would need to pay the difference for an alternative ticket with another airline.
For Wendy, the outcome was confronting. She said the family was shocked and felt the situation was clearly outside their control. Yet, as she discovered, travel insurance can treat conflict-related disruptions in a way that leaves travellers responsible for significant extra costs.
In the end, while Christopher could obtain a refund for the cancelled flight, Wendy’s family could not cover the difference for a more expensive replacement flight to get him to Europe. They also could not absorb additional costs associated with travelling from a different city to his intended destination.
War and conflict: a “blanket ban” in many policies
According to insurance expert Jodi Bird from consumer advocacy group CHOICE, Wendy’s experience is more common than many travellers realise.
Mr Bird said that across policies there is typically a broad exclusion: claims resulting from war are generally not covered. In his view, it is “pretty straightforward”—travel insurance usually does not like to cover war because it is expensive and unpredictable, and insurers have largely decided it falls under a broad, standard exclusion.
One of the most important takeaways for travellers is that the exclusion often applies regardless of what you pay. Mr Bird said it does not make a difference whether you have a budget policy or a premium product: travellers may not be covered for conflict-related claims even under the most expensive policies.
That can be surprising for consumers who assume a higher premium buys protection for every major disruption. In this area, experts say, the market tends to be consistent: conflict and war sit in a category that many policies simply do not insure.
Does timing matter? What experts say about buying early
Many travellers buy insurance as soon as they book, believing that purchasing early will protect them if circumstances change. Buying early can be sensible for many reasons, but experts caution that it may not overcome certain exclusions.
The Insurance Council of Australia’s deputy CEO, Kylie McFarlane, said that for war or conflict, it does not matter when the policy is taken out. Even if there is no conflict at the time of purchase, the fine print may still exclude any claims arising from those events.
This is a key point for consumers: the absence of a conflict when you buy the policy does not necessarily mean you will be protected if a conflict later affects your travel.
Natural disasters may be treated differently—but it depends
Not every large-scale event is handled the same way. While conflict is widely excluded, natural disasters such as floods, cyclones, or bushfires may be treated differently depending on the insurer and the level of cover.
Ms McFarlane said extreme weather events may be an inclusion. However, she stressed that it comes down to the specific policy and provider. For travellers concerned about weather-related disruption, the practical advice is to speak directly to the insurer and clarify what is included and what is excluded.
This “it depends” is not always what travellers want to hear, but it reflects how travel insurance is structured: coverage can vary by product, definitions can differ, and the circumstances of a claim matter. The only reliable way to understand your position is to read the policy documents and confirm the details with your insurer.
What to do if your claim is rejected
A rejected claim can feel final, particularly when the policy wording is complex. But experts say travellers should not automatically accept the first “no” if they believe the decision is wrong or if the explanation is unclear.
Mr Bird’s advice is direct: do not treat a knockback as the last port of call unless you absolutely agree with the insurer’s reasoning. He recommends first raising a complaint with the insurer and asking them to revisit the claim.
If the insurer does not provide a satisfactory answer, Mr Bird said the complaint can be escalated to the Australian Financial Complaints Authority.
Wendy did reach out to the insurer. She said the company simply directed her back to a clause in the policy stating that war or unrest made claims null and void. For her, it was a lesson in how decisively exclusions can be applied—and how little room there may be to argue when the policy wording is explicit.
Why travellers miss exclusions—and where to look
Many consumers shop for travel insurance the same way they shop for flights: quickly, online, and focused on the top-line features. Wendy said the exclusion was not something that was raised clearly at the beginning, and even if the family had looked at the exclusions, it might not have occurred to them that a transit stop used by so many travellers could be affected by war or unrest.
Mr Bird recommends looking beyond the headline benefits on the website and reading the policy document carefully—particularly the exclusions.
He said every product disclosure statement includes a section commonly titled “general exclusions”. This is where travellers can get a clearer understanding of what may not be covered, including major events such as war, pandemic, terrorism, and civil unrest.
Reading this section is not always easy, but it can prevent expensive surprises. It also helps travellers make an informed choice between policies that may look similar at first glance.
Travel insurance is still “worth it”—especially for medical and repatriation
Despite the frustrations that can come with exclusions, experts do not argue that travellers should skip insurance altogether. In fact, Mr Bird said travel insurance is definitely worth it, particularly for medical costs.
He described it as worth it “basically all the time” for overseas travel, emphasising that travellers may need travel insurance to cover medical and repatriation costs if something goes wrong overseas. Those are the areas where people can quickly face serious financial trouble if they are not covered.
The message is not that travel insurance is useless. Rather, it is that travellers should buy it with realistic expectations—understanding that some of the most dramatic global events may sit outside what travel insurance is designed to pay for.
Health preparation: practical steps before you go
Insurance is only one part of travel readiness. Doctors are also advising travellers to take practical health precautions before departing. That includes checking vaccinations, packing health essentials, and taking basic precautions such as mask-wearing in crowded areas.
These steps do not replace insurance, but they can reduce the likelihood of health issues arising during travel and help travellers manage risks that are within their control.
A checklist for travellers: questions to ask before you buy
Given how common misunderstandings can be, travellers may benefit from approaching travel insurance as a set of questions rather than a single purchase. Based on expert guidance, here are practical areas to review before committing to a policy:
General exclusions: Find the “general exclusions” section in the product disclosure statement and read it carefully, focusing on major events such as war, terrorism, civil unrest, and pandemic.
Conflict-related disruption: Confirm whether cancellations, rerouting costs, and additional transport expenses are excluded when they arise from war or unrest.
Natural disaster coverage: Ask whether extreme weather events are included and what conditions apply, noting that inclusion can depend on the provider and level of cover.
Medical and repatriation benefits: Review the medical cost line and repatriation coverage, which experts highlight as core reasons travel insurance can be financially essential.
Claims process and complaints: Understand how to lodge a claim and how to complain if a claim is rejected, including the option to escalate to the Australian Financial Complaints Authority if needed.
Planning for the gaps: why “outside your control” may still be excluded
Wendy’s message to other travellers is blunt: even when you pay for your trip, prepare carefully, and buy travel insurance, you may still need to cover costs yourself if something goes wrong.
That warning is not a reason to panic, but it is a reason to plan. Travel insurance can protect you from many common and costly problems, particularly medical emergencies. But it may not protect you from every scenario that feels unfair or unforeseeable.
In periods of heightened global uncertainty—whether due to conflict affecting flight paths or extreme weather disrupting destinations—the most practical approach is to treat travel insurance as one layer of protection. Read the exclusions, ask questions, and be prepared for the possibility that certain events, especially war-related disruptions, may fall outside the boundaries of what your policy will pay.
For travellers heading off on a major trip, that understanding can be as important as the policy itself.