Comprehensive vs medical-only travel insurance: what's the difference?

What is basic (medical-only) travel insurance?

Basic or medical-only policies focus primarily on covering overseas medical and hospital expenses while travelling. If you're comparing basic vs comprehensive travel insurance, this is usually the most stripped-back option available.

What does basic travel insurance cover?

Basic travel insurance generally helps cover overseas medical and hospital expenses, plus emergency evacuation and repatriation if you unexpectedly become seriously sick or injured overseas. It also may cover a certain amount of lost or stolen luggage.

Basic travel insurance policies typically exclude additional benefits like trip cancellations or rental car excess. This means that while you may be covered for unexpected health conditions or injuries, other common travel disruptions typically are not covered.

What is comprehensive travel insurance?

If you've ever wondered what comprehensive travel insurance is, the answer is in the name: it offers broad cover with a range of benefits - not just cover for overseas medical and hospital expenses.

What does comprehensive travel insurance cover?

A comprehensive travel insurance policy typically includes cover for:

• overseas medical expenses and hospital care
• emergency evacuation and repatriation
• trip cancellation or interruption (if included/added)
• lost, stolen or delayed luggage
• travel delays and missed connections
• personal liability (if you accidentally injure someone or damage property).

This type of policy is designed to provide cover for both your overseas medical and hospital expenses and your financial investment in your trip. For example, if your flight is cancelled due to severe weather or you need to cut your holiday short due to unexpected illness, comprehensive insurance can help recover those costs.

It's important to read the your travel insurance policy's PDS to know what's covered and what's excluded.

More: What happens with lost or stolen luggage at the airport?

Basic vs comprehensive travel insurance: key differences

When weighing up basic vs comprehensive travel insurance, the main distinction comes down to scope. Consider:

• coverage breadth - basic policies focus solely on medical emergencies, while comprehensive policies include medical, plus other travel-related cover such as cancellations, delays and lost belongings.
• financial protection - basic insurance generally doesn't cover prepaid expenses. Comprehensive insurance can cover flights, accommodation and tours if something goes wrong before or during your trip. Always check the PDS for full details.
• peace of mind - basic cover may be suitable for travellers willing to accept more financial risk. Comprehensive cover generally has more options and higher limits.

Is basic travel insurance enough?

A common question travellers ask: is basic travel insurance enough? The answer depends on your travel style, destination and risk tolerance.

You might consider basic (medical-only) insurance to be sufficient if you're:

• taking a short, low-cost trip
• have flexible bookings that can be changed or cancelled without fees
• travelling light and not carrying valuable items
• primarily concerned about potential medical costs.

It's important that you read the PDS and understand the cover before you purchase. This will ensure you have the right policy for your trip.

However, for many travellers, comprehensive insurance is often the safer choice - particularly for international trips.

When basic (medical-only) cover may be suitable

There are scenarios where basic insurance can be a practical option, such as:

• budget or flexible trips - if your travel plans are low-cost or easily changeable, you may decide that additional cover isn't necessary.
• minimal risk tolerance for extras - some travellers prefer to self-insure for non-medical risks, accepting the possibility of losing money on cancellations or lost items.

When comprehensive travel insurance may be suitable

You may want to consider comprehensive cover if:

• you're travelling overseas - medical costs in countries like the United States or Japan can be extremely high. While both basic and comprehensive policies cover medical emergencies, comprehensive insurance also covers you for a wider range of benefits.
• you've spent a lot on your trip - if you've prepaid for flights, accommodation or tours, comprehensive insurance can reimburse you if you need to cancel or change your plans (subject to policy terms and conditions).
• you're travelling with valuables - laptops, cameras and other personal items are often covered under comprehensive policies if they're lost or stolen.
• you want broader protection - travel delays, missed connections and unexpected disruptions can all add up. Comprehensive insurance may help reduce the financial impact of these situations.

Which should you choose?

Choosing between medical-only and comprehensive cover comes down to balancing level of cover with what best suits your needs.

For most travellers, comprehensive travel insurance offers greater peace of mind because it can provide cover for unexpected overseas medical emergencies, as well as your travel plans and finances.

If you're still unsure whether basic travel insurance is enough, consider how much risk you're willing to take – and what it would cost if things don't go to plan.

Always read the PDS to ensure you understand what is covered and what is not.

What types of international travel insurance does RACV offer?

RACV Travel Insurance offers four levels of international cover: Basics, Essentials, Comprehensive, and Annual Multi Trip. RACV Members save 15 per cent on RACV Travel Insurance.*

RACV International plans

RACV Basics

This cover includes:

• overseas medical and hospital expenses (unlimited^)
• lost or stolen luggage up to $2,000^#
• emergency expenses up to $5,000^#
• COVID-19 benefits.⋄

RACV Essentials

This cover includes:

• overseas medical and hospital expenses (unlimited^)
• lost or stolen luggage up to $7,500^#
• emergency expenses up to $25,000^#
• cancellation fees and lost deposits (choice of limit)^#
• rental car excess up to $4,000
• COVID-19 benefits.⋄

RACV Comprehensive

This cover includes:

• overseas medical and hospital expenses (unlimited^)
• lost or stolen luggage up to $15,000^#
• emergency expenses (unlimited)~~
• cancellation fees and lost deposits (choice of limit)^#
• rental car excess up to $8,000
• COVID-19 benefits.⋄

RACV Annual Multi Trip

This cover includes:

• annual cover for an unlimited number of trips over a 12 month period
• a maximum duration limit of either 30, 45 or 60 days per trip
• sums insured under each of the sections of the policy automatically reinstated on the completion of each trip
• overseas medical and hospital expenses (unlimited^)
• lost or stolen luggage up to $15,000^#
• emergency expenses (unlimited)~~
• cancellation fees and lost deposits (choice of limit)^#
• rental car excess up to $8,000
• COVID-19 benefits.⋄

For a full list of inclusions, limits, sub-limits and exclusions, read the Product Disclosure Statement.

^{^ Overseas medical and hospital expenses: 'Unlimited' means there is no cap on the maximum dollar amount which may be paid out for this benefit, noting that how much is payable for a benefit depends on the specific cover in the relevant section of the Policy Wording and any applicable exclusions. Medical, hospital, dental or any ancillary benefits or expenses incurred more than 12 months from the time treatment for the injury or illness was first received will not be covered. Terms, conditions (including eligibility criteria), limits, sub-limits and exclusions apply. Refer to combined PDS/FSG for full details.}

^{~~Unlimited means there is no cap on the maximum dollar amount which may be paid out for this benefit, noting that how much is payable for a benefit depends on the specific cover in the relevant section of the Policy Wording and any applicable exclusions.}

^{⋄ Limited COVID-19 cover is only available for specific benefits and sub-limits apply. Refer to the PDS for full details inclusions, exclusions and applicable limits.}

RACV Travel Insurance additional cover options

You can add additional cover to your RACV Travel Insurance policy, such as:

• ocean cruise cover**
• ski and winter spots cover.^#

<sup>**Refer to combined Product Disclosure Statement (PDS)/ Financial Services Guide (FSG) to determine if Cruise cover is required for your trip. Terms, conditions, limits, sub-limits and exclusions apply.

# Terms, conditions (including eligibility criteria), limits, sub-limits and exclusions apply. Refer to combined PDS/FSG for full details.

Any product information on this page is a summary only. Review each section of the combined PDS/FSG for terms, conditions, exclusions, limits, sub-limits, and any general exclusions that apply.</sup>