Backpacker Travel Insurance Guide

Backpackers are accustomed to travelling lightly - and often on a very tight budget. They are well versed in finding the best deal and spending little to no money on accommodations - like bunking with friends or camping outdoors. They are super savvy when it comes to getting the best deals on flights and other travel arrangements and know a great deal when they see it.

Backpackers are often stereotyped as frugal and certainly, they will have to stretch their dollars further than the average tourist. Travel insurance is often the easiest expense to boot- it certainly seems redundant when you don't need it. However, such an extravagance might not seem so frivolous should you require immediate medical treatment, or an emergency arises. You don't need to be travelling with a suitcase full of possessions for things to go awry on your trip.

Why buy travel insurance for backpackers?

We all know you’re trying to do this trip on a budget, that’s why you’re backpacking after all, but backpacker travel insurance is here to save you money in the long run, especially because we make it easy to find effective, cheap travel insurance online, saving you time, money and stress.

Picture this:

You’re in Bali, on day three of your six-month trip. You’re taking in the scenic views at the top of Sekumpul waterfall with the new mates you just met at your hostel. Suddenly, you lose your footing, slip and land on your arm. Now you need to get yourself down the trail, to a hospital, get an x-ray, stay overnight, have some surgery to reset the bone you just broke and get a cast fitted. Disaster incoming, right? Not if you’ve followed our tips and purchased some good value backpacker travel insurance! Your trip is not over, your budget is not blown, you just have to work around the new addition to your arm. Otherwise, you’re heading home with a sore arm and a sore wallet.

How to get the best travel insurance

This depends on your needs! Use our handy tool to compare insurance providers and see who has the right backpacker insurance policy for you.

Make sure you’re covered for all these things

The level and type of coverage you’re going to need will depend on the type of trip you’re heading out on. Thinking of sunning yourself by a pool on the Spanish coast? You’ll probably make do without buying a high premium backpacker travel insurance policy covering adventure activities. Thinking of scuba diving in Cyprus, or trekking the Tour Du Mont Blanc in Italy, you’re going to need more coverage.

Of course, the answer to this question will be different depending on your policy and insurer, but generally speaking, this is what you’re covered for:

• Emergency Medical Assistance: typically a standard inclusion across insurers. This will cover your care in case of a medical emergency. This may cover GP visits, hospital bills, medications, and other necessary treatments. Usually, the payout limits for this are quite high, often unlimited.
• Luggage: this is here to help when you’re left watching an empty luggage carousel with your hands looking just as empty. The payout limits on this will vary depending on your policy, but will go some way to replacing all the bits and bobs you lose when your luggage goes on the missing list or is stolen. Pro-tip: if you’re bringing any expensive, valuable equipment or jewellery with you, you may be able to pay an extra premium to protect these particular items, but please be mindful of what you include in your bag.
• Cancellations: this covers when you need to cancel or cut your trip short for a whole host of reasons, like illness, natural disasters, political unrest in your destination, or even serious injury of a family member. This cover will help you pay the costs of things like accommodation, flights and tours you’ve already booked. It’s also important to know your rights, you have 14 days from the issue of your certificate of insurance to cancel your policy without being charged, so long as you haven’t made a claim or started your trip.

What’s not covered?

It’s equally important to know what you’re not covered for under your backpacker travel insurance, so you can make smart choices on your trip.

Firstly, read your policy documents for specifics, and be aware that often skiing and cruising packages are extra add-ons to general travel or backpacker insurance. So, if you’re hitting the slopes or the seas be sure you have purchased the relevant package.

Again, every policy will be slightly different but exclusions to cover will usually apply to:

• Errors in the booking: This includes not having the correct visas, passport or travel documents, as well as general errors in the booking like wrong dates, airports etc.
• Reckless or illegal behaviour: You must act in a way that is responsible and aims to avoid claims while you’re away. If you are found to be acting irresponsibly or are under the influence of drink or drugs which were not prescribed to you at the time of an incident, you are not covered. If the incident breaks any laws within the country, you are not covered for any resulting injury or illness.
• Adventure activities: Typically insurers have exclusions with extreme sports so make sure you read each insurers PDS thoroughly to understand your cover, you may not be covered if you: Drive a moped, scooter or motorcycle without an Australian licence to do so. Get on a moped, scooter or motorcycle operated by someone without a licence to do so in your current country. Sail more than 10 nautical miles off land or scuba dive without an open water diving licence, or the guidance of a licenced instructor. Compete in professional sports. Partake in quad biking, mountaineering, rock climbing, or hiking above 3500m altitude.
• Travel against government guidance: if you choose to travel to a place with a ‘Do Not Travel’ risk rating, your policy will not cover you.

Wait! What happens if I lose my passport?

Your passport is the most important document while you’re travelling, without it there’s no way to get to your next country, or more importantly, home! We recommend you use the safes, or locked lockers in your accommodation to store it rather than carrying it around the streets of your trip, just make sure you remember it when you check-out!

The procedure of replacing your passport may be a little different depending on what country you’re in, so familiarise yourself with where you need to go and what you need to do if this happens! Local police stations are always a good place to start, as your lost passport may have been handed in. Contact the nearest Australian embassy or consulate, or phone the 24-hour Consular Emergency Centre in Canberra on +61 2 6261 3305 urgently for help.

If worst comes to worst and your passport is irretrievably lost or stolen, you may be covered by your travel insurance for the cost of replacing it, plus anything related you have to pay out of pocket. Keep in mind you will not be covered if you leave your passport behind you or lose it in a reckless or illegal manner. Damages to your passport are your responsibility,, so make sure you store and carry your passport super carefully.

So, now you’ve got your insurance, you’ve booked your flights, time to start packing and getting excited. Here are our top tips for what you need in your backpack, and staying safe abroad.

Packing

Clothes:

Weather can be changeable, particularly across Europe, so if you’re heading to a few spots, you’re going to need a little bit of everything! We recommend bringing lightweight pieces you can layer up on in the cold, a few bits for hitting the pool or ocean, 1 pair of walking shoes plus an extra pair for hitting the town, and a light, waterproof jacket or poncho, especially if you’re heading to notoriously rainy places like these rainiest cities in Europe. Bonus tip, if you’re staying in hostels make sure you pack a light towel as not all hostels provide clean towels!

Documents & Essentials:

This is maybe the most important piece of packing you will do! You’re going to need:

• Passport
• Visas and travel permits for each destination.
• Your travel insurance documents, and itinerary.
• A padlock to secure your belongings in hostels.
• A sim or e-sim for your phone for each destination country.
• A first aid kit.
• Credit or debit card to withdraw cash in the local currency.
• Technology: Make sure you check the voltage of your destination’s outlets against Australia’s, or else you will fry your hair tools, phone chargers and laptops! If the voltages are different make sure you buy a travel adaptor that alters this and fits the sockets in your destination. The usual suspects for any trip apply here, bring your phone, you’re going to need Google Maps, maybe an e-reader and definitely a powerbank plus chargers.
• Miscellaneous: If you have space after all that, these are some nice to have bits to make your trip a bit more comfortable. A reusable water bottle, travel size toiletries, an eye mask and travel pillow, a guidebook, an umbrella.

How to stay safe

Now that you’ve touched down, we want you to enjoy, soak it all in and make amazing memories, while staying safe! We know this sounds easy, but it isn’t always, so here are some of our top tips for staying safe.

• Health: staying healthy abroad starts with making sure your travel vaccines are up-to-date before you depart. It’s important to be informed on the particular risks of where you’re heading and follow government advice on travel
• Socialising: This is the main reason we all go backpacking, to meet new people and have fun, but it is so important to be aware of your surroundings. Remember, your insurance won’t cover you if you are under the influence of alcohol or drugs, and most policies also won’t cover illness resulting from sexually transmitted diseases, so be sure to protect yourself always. Keep your drinks covered, and with you when you’re out at the bar or club. It’s also important to know your limits, and when it’s time to call it a night. When it is time to head home, make sure you’re not going alone, or without a plan. Stick with your group and only get in taxis or Ubers that are licenced and safe lots of countries have apps like Uber or Didi where you can share your location with friends on your drive home too.
• Expensive Jewellery: While we do not recommend you travel with expensive jewellery, if you are bringing it with you, be careful where and when you wear it. Expensive, flashy jewellery will draw attention to you and can make you a target for pickpockets or thieves, so as always, make sure you are aware of your surroundings when out and about.
• Carrying cash: While it is a good idea to carry some currency with you, it is important to ensure you’re not bringing too much out at once. It’s much better to lose a small amount of your cash if the worst was to happen than to end up losing your whole budget at once.
• Keep family and friends updated: We’re sure your Mum and Dad are dying to know all your travel stories, and while we’re not saying they need all the details, it’s so important to keep a few people up to date with your whereabouts and plans, so if anything was to happen, they know where to find you.

So, there’s our top tips for backpackers, but what if you’re heading overseas longer term? You can usually only buy travel insurance 1 calendar year at a time, so if you’re planning on taking a longer trip than this, you’re going to need long term travel insurance.

Long term travel insurance

Most Australian travel insurance will only cover you for 12 months at a time, but there are a few which will cover you for 18-24 months. Another great possibility is extending your travel cover once your first year expires. Not all insurers offer this however, so it is important to do your research in this regard also. Similar to the usual short term insurance policies this should cover medical expenses, luggage, and cancellations, but will not cover high risk adventure activities, unlicenced driving abroad, or reckless activities.

Where could you be heading for over a year? Here are the 2 most common long term trips backpackers embark on, maybe you’ll be inspired to do the same!

United Kingdom: Youth Mobility Scheme Visa

New Zealanders aged 18-35 can head to the UK for a 2 years on a youth mobility scheme visa (YMS). As long as you have an New Zealand passport that’s valid for your stay in the UK, you’ll be able to extend your stay by a further 12 months if you just can’t get enough of the UK vibes. You’ll have to prove £2,530 in savings (that’s around $5,400 as of Oct 2024) when you’re applying. This visa allows you to work, study or start your own gig and be self employed in the UK! Just make sure you follow all our tips and get your travel insurance sorted before you go. Not sure where to head? The UK is made up of 4 separate countries, each with their own hidden gems, from the bright lights of London, and the English countryside to the historic cities of Northern Ireland, Scotland and Wales, the UK truly has something amazing for everyone.

Canada: Working Holiday Visa

Get your golden ticket to Canada, as a Kiwi aged 18-35, you can apply for a working holiday visa for 2 years. Just have a valid Australian passport for the duration of your trip, be able to prove CAD2,500 of savings, and hold travel insurance for the duration of your stay and away you go! This is part of the International Experience Canada program, so be sure to soak up the culture while you’re there. Whether you’re skiing in Banff or living the city life in Toronto, this is an amazing opportunity to experience all that Canada has to offer!