Ultimate Guide to Gap Year Travel Insurance

Are you exhausted after completing your HSC and looking forward to some much-deserved time off? Perhaps you’ve already started studying at university, a new job, or a TAFE course, but are feeling the need to get away and stretch your boundaries?

Maybe what you’re looking for is a Gap Year holiday!

The Gap Year is the ultimate escape holiday. There’s no set rules on what you should do – that’s the beauty of it!

You can use the time to explore places you’ve always wanted to visit, make new friends from around the world, and discover yourself and what is most important to you. You might go for the full 12 months and work overseas to fund your travels, or just take a few weeks to explore a particular destination you’ve dreamed about.

It could involve a working holiday at the high-tech ski resorts in Japan or the spectacular Canadian Rockies, pulling pints by night and carving up the slopes by day. Or, if you’re more of a summer-lover, island-hopping in search of the most breathtaking beaches while volunteering in the Pacific Islands.

If you’re looking for a more cultural experience, you might like to take a tour of all the monuments, museums and galleries in Europe. Or maybe you just want to see how far your savings will stretch on a backpacking trip around Southeast Asia?

Wherever you’re headed on your Gap Year escape, one thing is for certain – travel insurance is an essential pre-travel purchase.

Why do I need to purchase travel insurance for a Gap Year holiday?

You can never predict what will happen overseas. Travel insurance can provide cover for the various emergency situations you may experience during your Gap Year travels.

You might have your personal belongings stolen, get extremely sick from a virus or bacteria your body hasn’t encountered here in Australia, have an accident, break a bone, miss a connecting flight, find yourself stranded due to a natural disaster... the list goes on.

Travel insurance can provide cover for the unexpected expenses an emergency can bring, as well as connecting you to a team of professionals available 24 hours a day, 7 days a week, 365 days a year from anywhere in the world.

If you want to know how to get the right travel insurance for your Gap Year – this is the ultimate guide for you!

What should you look for in Gap Year travel insurance?

So you’ve decided on travelling overseas, or maybe around Australia, as part of your Gap Year.

You can visit a lot of different places and have heaps of different experiences on your holiday. So what sort of travel insurance should you be looking for that will cover you for all of it?

Every travel insurance company and policy is different, but one essential benefit you may want to consider is cover for emergency expenses.

Here’s a list of the emergency situations Gap Year travel insurance can provide cover for:

Are pre-existing medical conditions covered by Gap Year travel insurance?

Many travellers have a pre-existing medical condition and may not even realise it.

A pre-existing medical condition means any condition that has been diagnosed, is being treated or investigated by a medical practitioner. This could be something like a heart condition, asthma, high blood pressure, or diabetes. Even if it’s an old condition that doesn’t cause you any trouble, or something that is already being managed with medication, you’ll still need to check that it’s covered with your travel insurer.

If you do have a pre-existing medical condition, you may find it’s automatically covered by your policy.

However, not all pre-existing medical conditions are automatically covered by travel insurance. You may be required to pay an additional premium after a medical assessment has been conducted to receive cover, or cover may not be offered at all.

Ensure you read the travel insurer’s Product Disclosure Statement (PDS) so you know whether you’re covered for a medical emergency related to a pre-existing medical condition.

Am I covered for motorcycling and other activities?

It’s important to check what activities you’re covered for in your travel insurance policy as not all activities are automatically included!

Riding a motorcycle or moped overseas, for example, may or may not be automatically covered. You may need to pay an additional premium to add a Motorcycle Pack to your policy to cover you in case of injuries or accidents and cover may also depend on whether you have the appropriate license for your destination. 

The same goes for activities like skydiving and high altitude hiking. Other activities, such as quad biking and scuba diving, might only be covered by paying for an additional ‘Adventure Pack’ add-on or other additional premium.

As with cover for pre-existing medical conditions, some travel insurers may not offer cover for your chosen adventure activity, so be sure to check the insurer’s Product Disclosure Statement.

Does travel insurance cost more for Gap Year travel?

The cost of a travel insurance policy is determined by a number of factors, including:

• Your age
• Where you are going – some countries such as the United States may be more expensive due to the higher cost of medical assistance
• If you’re going on a cruise or not
• Pre-existing medical conditions – you may require an additional premium to cover a pre-existing medical condition that is not automatically included in your policy
• The duration of your trip – if you’re travelling for the full 12 months, you will likely pay more for a travel insurance policy than someone who is travelling only for a few weeks

Compare quotes from a few different insurance companies before you buy travel insurance so you know how much money you need to budget for a travel insurance policy.

Can I extend my travel insurance policy while overseas?

Going overseas with a one-way ticket and not sure when you’ll return? You can still find a travel insurance policy to suit your needs.

If you intend to return home to Australia, you can purchase a travel insurance policy for the time you estimate you’ll be away, and then pay to extend it if you end up loving your holiday too much to return home.

However, some travel insurance policies do have a maximum period of time they can provide you with cover. So before you travel, check the Product Disclosure Statement (PDS) so that you don’t get the unwelcome surprise that you can’t extend your policy further.

It’s also important to note that extending your policy can be more expensive than buying a policy to cover the length of time you’ll be away, so it may be worthwhile taking the time to estimate how long you want to be travelling before purchasing Gap Year travel insurance.

Can travel insurance cover a Gap Year working holiday?

If you’re thinking you might pick up a job in a hostel, pull pints as a bartender or wait tables to fund your travels, then you’ll need to check whether your travel insurance policy will provide you with cover.

Some travel insurance companies will cover a working holiday visa, meaning you will have that essential cover in place should you experience a medical emergency while working.

Jobs that can typically be covered include:

• Office workers
• Trades and services
• Hospitality
• Nursing
• Teaching
• Waitresses or waiters
• Bartending
• Hotel Cleaning
• Hostel staff
• Tour guides
• Ski resort workers or ski instructors (provided you’re covered for the snow and snow sports in your policy!)
• Volunteer work
• Charity work

Always remember to check your travel insurer's Product Disclosure Statement (PDS) or ask if you're not sure whether your job is covered by their policy.

What type of volunteer work is covered by travel insurance?

Not all volunteer work will be automatically covered by your travel insurance policy, as some volunteering positions can expose you to substantial risks. For example, if you’re working with wild animals or in conservation. The same goes for jobs that involve intense physical labour.

Other jobs don’t expose you to as much risk, like working in a hotel reception or teaching English in Japan or Southeast Asia. These types of jobs may automatically be covered, but check the Product Disclosure Statement (PDS) to find out if the job you plan to do is covered in your travel insurance policy.

Am I covered if I use Airbnb or couch surf?

Yes! If you opt to book a room or apartment with Airbnb, or crash on a friend’s couch to save some money during your Gap Year travels, you’ll still have cover for cancellations and theft or loss of personal belongings as if you were paying for your accommodation in a hotel.

However, you still need to exercise normal precautions to reduce the risks. For example, don’t leave your belongings unattended or not safely secured away in your Airbnb or at your friend’s house. If they’re stolen, your travel insurance is unlikely to provide cover for the loss.

What is the standard excess for Gap Year travel insurance?

Most travel insurance policies have what’s called an ‘Excess’. This is the amount you’ll have to pay towards any claims you make.

For example, a $200 Excess means that if you make a claim for $1,000 worth of expenses, you’ll only be reimbursed for $800 should your claim be accepted.

If an Excess applies to your Gap Year travel insurance, you may be able to reduce the amount by paying an additional premium upfront. Also keep in mind that the Excess most likely applies to each individual claim so it may be worth thinking about reducing it if you’re going overseas for 12 months or more.

What exclusions apply to Gap Year travel insurance?

When you buy a travel insurance policy, it’s important to be aware of the exclusions that may apply. Here are six common exclusions to be aware of before you begin your Gap Year adventure:

Travel Insurance for your Gap Year adventure

A Gap Year is the chance to explore the world and have first-hand experiences you can’t get any other way.

Not only does it look great on your resume, but you’ll be able to meet amazing people and explore places you’ve only seen in photographs or videos.

However, keep in mind that emergencies can occur whenever and wherever you travel, so remember to buy travel insurance before you start your Gap Year adventure!

If you're heading off on a Gap Year adventure, get an instant quote for travel insurance direct from our website now by clicking the button below.

*Stories are fictitious examples drawn from the experiences of Fast Cover travellers and staff. Any resemblance to actual persons, living or dead, or actual events is purely coincidental.