The Federal Government and consumer group Choice have released a guide to travel insurance that emphasises the importance of obtaining appropriate cover before heading overseas.

Research suggests 19% of holidaymakers travel without insurance, taking huge financial risks.

“The Government will not meet expenses if travellers are uninsured, including expensive overseas hospital and medical evacuation,” Foreign Affairs Minister Julie Bishop said.

The guide, commissioned by the Government in June, includes case studies detailing financial hardships faced by travellers who did not have cover or who didn’t understand policy exclusions.

It also lists potential costs and warns of common pitfalls, including that many policies will not pay out if people are drunk at the time of incidents and that pre-existing medical conditions may be excluded.

Excesses will be applied for each separate incident and travel warnings must be adhered to. Most insurers will not pay if a claim is the result of ignoring Government advice.

The guide also encourages consumers to shop around to find the best price and cover.

“The quality of the advice and depth of the insights provided by Choice is first class,” Ms Bishop said. “It will help travellers to better understand which activities are covered by their policy and any exemptions that are in place.”

See the guide at smartraveller.gov.au.