Everyone should know that travel insurance is a must when on holiday or vacation. hospital emergencies can cost up to $100,000 or more if an evacuation is required. Cancellations to plan, cruise or tour tickers can also be very expensive and often there is nothing you can do it avoid it. Even loss of baggage can be costly now that more people travel with notebooks and smart phones.

Sometimes you may not want to pay the cost of travel insurance. For long trips it may actually cost more for insurance than it does for plane fare. This is especially true of backpacking holidays through places like Asia or Europe. Also backpackers may not have expensive holiday packages or baggage to be concerned about. The normal comprehensive level of holiday insurance is often a waste for these people.

Many holiday insurance providers offer plans designed for the budget traveller and backpackers. These plans tend to cover general medical expenses such as hospital visits, doctor and surgical fees, dental costs, and medical evacuation. Sometimes these will also offer minimal cover in other areas such as luggage, credit card and document replacement. It is up to you to decide if you want this as it will raise the premium.

Some companies in Australia that offer budget and backpacker travel insurance are: iTrek Travel Insurance, Downunder Insurance, 1Cover Direct Travel Insurance, Insure4Less, and Travel Insurance Direct. You should search for travel insurance reviews to help determine the best cover for you.

Watch out for the excess. The normal excess tends to be $100 but some companies charge a higher excess to offer you lower premiums. It is usually best to get a policy with a low or zero excess so it does not cost you anything to claim. However, this tends to not be a problem on budget travel insurance as it really only covers costly medical expenses where the excess fee is only a small part of what the bills would be.

Since each policy offers a different level of cover with its own terms and conditions it is wise to review the Product Disclosure Statement (PDS). In Australia it is required that a company provides with a PDS prior to purchase as it details all the conditions, exclusions and limits of the policy.