The type of travel insurance you need will depend on where you are going, how long you are going for, and what you plan to do while you are there.

And while you can probably buy a policy online in just a few minutes, always remember that if it is cheap and looks too good to be true, it probably is.

“Travel insurance is one of the products you don’t buy on price,” Long cautions.

There are two main types of travel insurance policies regardless of where you are travelling to: basic and comprehensive. Different insurers might offer you different variations on both, for example comprehensive plus, but most will offer you at least these two products.

A basic policy will cover you for the bare minimum of medical, while a comprehensive policy will insure additional events and activities, for example if a travel services provider goes bust. Some insurers also offer adventure, snow or cruise travel options which can provide you with the additional cover that those activities require.

You can also get single-trip cover, multi-trip cover and even annual cover if you plan on going on an extended trip. Most providers also offer domestic cover as well as international cover.

Related: Our pick of the best travel insurance for Australians

Before you make a purchase, make sure you read the policy’s product disclosure statement or PDS. All financial products need to have one. If you are buying from a travel agent, they should give you the PDS along with the application form and if you are buying online, there should be a link to the PDS.

Click on the link and examine the document carefully. If it seems overwhelming at first just remember you don’t want a dud policy that doesn’t cover you for much at all.

Ideally you should read the whole document but if you look at nothing else, look at the table of benefits, policy cover descriptions and amounts for which they will cover you for, and the general exclusions. And if you are thinking of doing something that could be classified as even a slightly dangerous activity while you are away, do a word find on that activity to see if it is excluded from cover altogether.

If you can’t find what you’re looking for in the PDS, you can always ring the insurer and ask them.

While they are not allowed to advise on travel insurance by law, as travel insurance is a financial product, Long says travel agents are an important source of information.

“Insurance policies that are sold by agencies can support you contacting the insurer,” he says.

If you have any kind of health condition, it’s important you declare this when purchasing the policy. You can also look for an insurer’s policy around pre-existing conditions in the PDS. They may have some exclusions around some diseases, or they need you to write to them to request that they cover any pre-existing medical condition and for you to pay a higher premium.

“Make sure you declare all your existing conditions,” Long says.

Some insurers will only cover for mental health episodes, for example, if the person has declared the condition as pre-existing and paid a higher premium.

Medical care is one of the main reasons that people take out travel insurance, as hospital expenses around the world can cost thousands and thousands of dollars, so you don’t want to make your policy void by not declaring something before you travel.

Long says he has observed an increasing amount of claims around motor bike and moped accidents while people are overseas and if alcohol is involved, this can be grounds for an insurer to not honour a claim.

“If you plan to drink, whatever you do, don’t get on a motorbike,” he says.

“There are restrictions with regards to alcohol…most of the time that is a legal limit [but it could also just be any alcohol].”

• Get insurance for every country you visit—even stop-over countries.
• Make sure you declare all pre-existing conditions.
• Read the PDS.
• If you don’t understand something—call the insurer and ask.

Your travel insurance documents will have a number you can contact to make a claim while you are overseas, so keep this number close. Check the policy’s PDS for what you might need in the event of a claim as well.

If something has been stolen, you may need a police report. And for medical expenses over a certain amount, you may need your insurer to approve the cost with the medical service provider first. Either way, your insurer’s emergency number should be your first port of call.

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