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Lost luggage, missed flights, unexpected accidents — when it comes to holiday travel, there's no shortage of things that can go wrong. Thankfully, Kiwis heading overseas have a lifeline in the form of travel insurance. And as the numbers show, it pays to be prepared when adventure meets the unexpected.

Southern Cross Travel Insurance (SCTI) recently released claim data from around Christmas last year (November 2023 to February 2024) that sheds light on the challenges travellers face. From hefty medical bills to stolen belongings, the real-life stories behind the numbers underline why travel insurance is more than just a box to tick.

Big-ticket claims for health emergencies overseas

When it comes to travel mishaps, it’s medical bills that pack the heftiest punch. SCTI reported a staggering $2.67 million paid out for medical and evacuation claims during the November 2023 to February 2024 holiday period alone.

The biggest medical claim from January to October 2024 clocked in at over $460,000. From lengthy hospital stays in the US to sudden illnesses in Europe or the Pacific Islands, medical emergencies can leave travellers struggling with unfamiliar systems and languages.

“Navigating different languages, healthcare systems, and standards of care can be incredibly stressful for travellers and their whānau,” says Jess Strange, Chief Customer Officer for SCTI. “This is where our Emergency Assistance team steps in—helping to simplify the process, offer reassurance, and ensure that our customers are supported every step of the way.

Respiratory illnesses are another common culprit and aren't limited to cold-weather destinations. In Southeast Asia, cases of flu and pneumonia have been reported among tourists, with some requiring extended hospital stays.

“We’ve seen a spike in respiratory illness claims, particularly among younger travellers, which sometimes result in hospitalisation and costly medical care,” Strange adds.

Baggage blunders and Christmas gift woes

It’s not just your health you’ve got to protect during your trip. SCTI recorded over $1 million in claims for lost or damaged baggage and personal items over the review period. Claims included everything from stolen suitcases to smashed Christmas gifts tucked into checked luggage.

Strange urges travellers to do their bit when it comes to their belongings. “When flying, make sure you’re locking your bags or even wrapping them if necessary. If travelling by car, keep your valuables in the boot and bring them inside at night.”

Bali belly and medical mishaps

Some destinations are more claim-prone than others, and Bali continues to be a hotspot for both Kiwis and travel insurance claims. From foodborne illnesses like Bali Belly to moped crashes, medical issues in Bali pile up fast.

“Whether it’s street food, iced drinks, or unclean water, the experiences that make your holiday memorable can also land you in the doctor’s office,” Strange explains. “It’s not just Bali — travellers everywhere should be mindful of what they eat, how they explore, and what risks they’re taking on.”

Hot tip? Always get moped insurance if you plan to ride and stick to licensed drivers. And when it comes to wildlife encounters, watch out for everything from monkeys to venomous sea creatures. Injuries caused by animals are a surprisingly common occurrence in regions like Asia and the Pacific.

Rental car dramas

For many travellers, renting a car means freedom to explore destinations at their own pace. But when that freedom comes with unexpected dings or scratches, the excess can cost hundreds — or even thousands.

SCTI customer Philippa Chirnside experienced this firsthand while exploring Scotland with her husband. Although the pair took good care of their rental vehicle, two small dings on the car door during their trip resulted in the rental company charging them for excess damage upon return.

Fortunately, Philippa had SCTI’s International Comprehensive policy, which covered rental car excess. “SCTI’s Emergency Assistance team really lifted our mood by handling the process so quickly,” she says.

Where are Kiwis headed this Christmas?

Popular travel destinations for New Zealanders over the upcoming holiday season are as diverse as the claims they generate. Australia tops the list, while the USA and Japan follow close behind, with the latter a popular choice for skiing holidays.

While the slopes may be calling, a simple tumble could leave you with an eyewatering bill. One claim for a skiing accident this year came in at more than $19,000 after a young skier injured themselves on a rock.

“If you’re planning to hit the snow overseas, consider checking that your policy includes cover for snow sports, or look at purchasing it as an add-on,” Strange advises.

Whether you’re skiing in Japan, relaxing in Bali, or catching up with family overseas, travel plans rarely go 100% smoothly. Strange sums it up well. “Travel insurance is there to protect your health, your belongings, and your peace of mind. It’s about being able to enjoy your trip knowing that, should something go wrong, you’ve got someone in your corner.”

Before you board your next flight, take the time to review your policy and think through any added risks.