Less than 48% of Kiwis take out travel insurance every time they go overseas, not because we’re reckless, but simply because many Kiwis believe ‘she’ll be right’.
That’s according to new research from AA Travel Insurance, which also shows 21% say they rarely or never take out cover, with 61% claiming it’s unlikely, or that there’s no chance at all anything will happen to them overseas that will need medical treatment.
AA’s head of financial services Ben Rose says Kiwis are naturally optimistic and there’s often a sense that things will work out, and that’s why many people see travel insurance as optional.
. . . Medical, Dental
However, in the 12 months to Feb, he adds, one in five insurance claims at Cover-More NZ related to medical and dental treatment, making it one of the most frequent types of claims. And, these claims add up quickly, he adds. While New Zealand’s reciprocal health agreements with Australia and the UK provide cover for publicly funded treatments, AA says a single emergency room visit can cost up to $5000 before tests or additional treatment are added in destinations such as the US. Without insurance, Rose says costs can escalate quickly.
This is bad news for the 22% of Kiwis who say they do not know how they would pay for medical treatment overseas. Some 45% of Kiwis say they will rely on savings if caught out, but Rose is critical of this, saying overseas healthcare costs can quickly exceed what most households could afford.
“There’s a real ‘she’ll be right’ attitude when it comes to travel,” says Rose. “But overseas medical costs aren’t something you want to leave to chance.”
AA Travel Insurance is distributed, arranged and administered by Cover-More (NZ) Limited.
