The travel insurance rule that catches one-way travellers

Heading overseas without a ticket home might seem flexible, but it can come with hidden insurance risks.

A recent social media post from a mother whose son suffered a collapsed lung while backpacking through Thailand resonated widely online.

In it, she urged anyone with friends or family heading overseas to ensure they have a return flight booked and take the time to properly check their travel insurance policy, noting that without a return ticket, some policies can be completely invalid.

While her son was fortunately covered for his surgery under a separate policy, the post raised an important question many travellers may not have considered.

Do you actually need a return flight booked to be covered by travel insurance? Here's what you need to know.

Do I need a return flight to qualify for travel insurance?

While having a return ticket is preferable, most insurers will still provide cover if you can demonstrate an intention to return home before or on your tentative end date.

Without a return ticket, insurers need to establish that you are genuinely travelling rather than residing overseas and using a travel insurance policy as a low-cost substitute for health insurance, which is not permitted.

It's not about denying cover unfairly, but ensuring you have the right policy for your circumstances.

I haven't decided on a return date. Can I select one and amend it later?

In most cases you can nominate an estimated return date and adjust it once you're overseas, provided any extension is arranged before your policy expires.

However, extensions will come at an additional cost and may not always be guaranteed.

Most travel insurers can only sell policies for a 12-month period so if you're travelling long-term make sure you do your research in advance.

What if my trip is open-ended?

If you don't have a return ticket or a set return date, one-way travel insurance may be the right option.

It covers a range of unforeseen events before your departure, during your flight and for a period of your time away, though in some cases cover ends once you've passed through immigration at your final destination.

Some insurers do offer a period of cover at your destination, but it's important to check the terms of your specific policy before you depart.

What are typical conditions of a one-way travel insurance policy?

• You must be an Australian citizen
• Your trip must generally start in Australia
• After purchasing your policy a short waiting period may apply for medical claims
• Age restrictions apply, as with most travel insurance policies
• Pre-existing medical conditions must be disclosed
• Some policies expire between 24 hours and 7 days after arrival at your destination, so always check the fine print

What about emergency repatriation?

If you require emergency repatriation to Australia, insurers will typically use your return ticket to get you home.

On a one-way journey, you may be required to contribute the equivalent cost of an economy return fare.

What if I'm moving abroad or travelling for an extended period?

Most standard travel insurance policies cover you for up to 12 months, and in some cases 18 months.

If you're relocating overseas for longer than a year, consider a one-way policy for your initial travel period and then explore coverage options in your host country.

Keep your policy current and read the fine print

If you extend your trip, don't forget to extend your policy. Cover ends on the date listed in your certificate of insurance.

If you remain overseas beyond that date without notifying your insurer, your cover will lapse.

One-way travel insurance policies can vary significantly between insurers.

Before you depart, make sure you fully understand what your policy covers and when it ends.

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