Holidaymakers have been urged to read their insurance policies and be aware of their coverage before this month’s busy travel season.

The Insurance Council of Australia says its latest research shows many customers are unaware of exclusions for losses while under the influence of alcohol.

A survey found only 40% of respondents were aware alcohol consumption stipulations differed depending on the insurer, and 55% of those who had travel insurance were unsure how the cover treated alcohol use in the event of an accident.

ICA says the data is concerning given 69% of respondents who bought insurance on previous overseas trips drank alcohol while away. 

“While enjoying a drink or two is a key part of holidaying for millions of Australians, travellers should be aware of what they are covered for so that a broken bone doesn’t lead to a broken bank account,” ICA CEO Andrew Hall said. “Travellers should make sure they read their policy documents, so they understand what they’re covered for, whether that involves drinking alcohol, going for a hike or riding a motorcycle.” 

Mr Hall says 13% of respondents did not buy travel insurance on their last holiday, with younger people, those from poorer backgrounds, and travellers from culturally and linguistically diverse backgrounds most likely to go uninsured.

“When you are planning your overseas holiday, travel insurance is a must-have, as is ensuring you are covered for the activities you have planned,” he said. “Shop around, compare options, and ask questions to find the right coverage so the trip of your dreams doesn’t become a nightmare.”