When you are preparing for a exciting holiday overseas, the last thing you want toconsider is what will happen if something goes wrong while you are out of town.Unfortunately, around 20,000 Australians run into problems overseas and nearly 1,500are hospitalised. Without a travel insurance policy in place, these situations canbe financially devastating. A medical evacuation in many countries can cost over$50,000 while a standard hospitalisation can be over $500 each day. The purpose of travel insurance is to protect you against the unknown that can happen while you traveland provide you with coverage against medical situations and more.

What is Travel Insurance Exactly?
Travel insurance is a unique form of insurance that is designed to protecttravellers, both in the country and overseas. Travel insurance generally coversmedical costs incurred during travel, along with financial default by a travelsupplier like an airline and any other losses that might occur during travel, suchas theft. Most insurance policies are purchased when you book your trip and aredesigned to cover the duration of the trip. Other policies may be purchased from atravel agent or a travel insurance company to cover a longer period of time. Thereare many forms of travel insurance designed to cover unique situations. For example,cruise travel, international trips, leisure vacations and business travel.

What Travel Insurance Covers
A typical insurance policies covers a huge range of losses as well as injuries,although it is still important to choose a policy that completely covers everythingyou want to protect, such as belongings. A standard policy will cover overseashospital stays and medical expenses, although the amount covered varies by policyand provider. Pre existing conditions may not be covered, however. Emergency medicalattention is almost always covered and this aspect of insurance is particularlyimportant if you're travelling to a country with expensive health care costs. Mostpolicies also cover personal belongings, luggage, travel documents and even cashyou're carrying that may be stolen. Most policies cover theft and loss to a certainpoint, although you need to check that your policy covers your belongings. This isespecially necessary if you're travelling with expensive items like a laptop. Otherpolicies also provide cover for delayed luggage, giving you an allowance for newclothing if your luggage arrives after you at your destination.

It is also common for travel insurance to cover against unexpected events like anunplanned cancellation due to illness. Some policies provide coverage for anycancellation fees or lost deposits as well, making it important if you need to delayor cancel your vacation. Cancelled flights may also be covered, with some policiesproviding alternative transportation.

The last area that is covered by a travel insurance policy is accidental death andpermanent disability that may occur during travel. This is typically an option withmost insurance providers and allows you to protect your family and income ifsomething happens during a vacation, cruise or business travel. Loss of injury coveris also popular and it covers you if you sustain an injury during travel that keepsyou from working when you return to Australia. Personal liability cover is alsooffered as an option, which protects you if you cause an accident while abroad andneed to pay damages.

When You Need Travel Insurance
There are many situations that require  travel insurance, and even some that warrant extra coverage. Ofcourse, anyone travelling should consider a policy to protect against theunforeseeable. Travelling outside of the country can be particularly expensive ifthere is a medical accident. Japan and the United States are two very expensivecountries in which to be treated, with hospital stays that can top $10,000 each day.As your health insurance won't cover you in most countries, it can help to thinkabout situations like car accidents and emergency medical treatment.

Those travelling to perform extreme or dangerous activities like skiing, surfing andsnowboarding also need to consider optional travel insurance cover. The standardtravel insurance policy will not cover these situations but it is still important toconsider the high cost of treatment if something happens during a skiing vacation,for example. Because it can cost over $50,000 to be medically evacuated home, anaffordable travel insurance policy may be beneficial.

You may also need travel insurance if you are travelling with expensive belongingsthat you want covered in case of theft or loss. This can even apply to baggage lostby an airline, items stolen at a hotel or from a car and belongings damaged duringtravel.

There are many situations in which you need travel insurance. For example, if youlose your luggage and medication, you will need an emergency prescription filled thatinsurance can cover. If your wallet and passport are stolen, insurance may provideyou with emergency money and a new passport. Insurance can cover you if your flightis cancelled or if you need to cancel or delay your trip because you fall ill. Thereare countless situations in which travel insurance can help you while travellingoverseas, even in situations that may not sound expensive.

The Importance of Travel Insurance
Travel insurance is one of the most important aspects of any travel inside Australiaor overseas. It can protect you in many situations, including car accidents, lostproperty, cancelled flights or even accidents that occur during skiing. Travelinsurance is actually very affordable and can make a a trip worry free, allowing youto fully enjoy your vacation or cruise. By comparing insurance policies before youmake a purchase you will ensure you get the best price as well.