The truth about emergency costs

Each year, the Department of Foreign Affairs and Trade is contacted by more than 10,000 Australians who get into difficulties while travelling overseas, according to the department’s Smart Traveller website.

Australian consular officials can offer assistance to travellers in emergency situations.

However, all medical expenses incurred while in another country, including evacuation costs, must be covered by the traveller.

Some overseas medical costs could potentially take a lifetime to repay and can reach hundreds of thousands of dollars depending on the situation and the country.

Medical evacuations from the US cost an average of $75,000-$90,000, but can cost as much as $200,000.

Even in South-East Asia, hospital stays can be as much as $800 a day and evacuations from Bali to Australia can cost up to $60,000.

Before you purchase a travel insurance policy, check it covers all activities you may take part in overseas and make sure it adequately covers medical expenses in every country you’ll be visiting.

Not all policies cover adventure activities, such as skiing, diving and bungee jumping.

Most travel insurance will cover you for insurable events that occur before you travel so it’s important to take out a policy as soon as possible after you’ve paid for your trip.

While many policies offer similar features, they’re not all the same, so you should read the product disclosure statement before you commit to any policy.

Get insured before you head off.

RAC members save 15% on Travel Insurance so you can stress less before your holiday.

Find out more