Australians booking holidays ahead of the Christmas break are being urged to be aware of “expensive situations” when things go wrong.

Southern Cross Travel Insurance says that while it has paid out more than $7.5 million in claims this year, there are plenty of areas where travellers get tripped up and lose access to coverage.

“It’s important to be aware of the details to avoid common mistakes that can lead to denied claims or inadequate coverage,” SCTI chief executive Jo McCauley said.

These are the 10 most common mistakes people make on travel insurance claims.

1. Alcohol

Many Australians enjoy drinking on their overseas holidays, but beware because it can affect whether or not you get an insurance payout if something goes wrong.

SCTI said people could be denied cover for things such as falls and injuries, or lost phones, if they had been drinking.

Make sure you check your policy before you depart, so you’re aware of any alcohol exclusions.

“Insurers will consider supporting information, including medical reports and occasionally supplementary information like witness statements and bar bills, to further understand the causal impact,” SCTI said.

2. Secure your belongings

The most common claim for lost possessions with SCTI is mobile phones, with 230 such claims this year alone.

But if you haven’t taken reasonable steps to safeguard your phone or other belongings while on holiday, then your insurer could deny your claim.

“Leaving your personal possessions unattended on the beach or in other public places can lead to your claim being rejected,” SCTI said.

“Travel insurance typically requires that you take ‘reasonable care’ of your belongings. Make sure to secure your valuables in a safe place to avoid theft and potential claim issues. “

3. Driving on two wheels? Ensure proper coverage

Jumping on a moped or scooter is a convenient way to get around while travelling, but there are also risks – especially if you haven’t added that activity to your travel insurance policy, SCTI said.

“Many standard policies do not cover moped or scooter travel unless specifically stated,” the insurer said.

“Generally, claims will only be covered if you meet the policy conditions, such as having the appropriate licence, choosing rides where the engine size stays within your policy limits, and wearing a helmet.”

The average claim cost for moped or scooter related incidents is $8101 this year, SCTI said.

4. Stick to the trails

If you’re getting a bit adventurous on the mountain trails with skis and snowboards, then you’re best of ensuring you get the right policy add-ons to ensure you’re covered.

Pay attention to the fine print though, because certain activities, including venturing off the official trails for tourists, could wipe away your coverage.

The average snowboarding or skiing claim this year was $1866, SCTI said. The top claim – of $28,500 – was paid out to a 62-year-old skier who fractured their leg after losing their balance.

5. Pre-existing conditions

A key for any kind of insurance, but especially travel and health insurance, is your situation.

SCTI said disclosing pre-existing medical conditions was vital to prevent claims being denied.

The most common conditions reported by SCTI customers are high blood pressure (11 per cent), asthma (5 per cent), anxiety (4 per cent) and hypertension (4 per cent).

“Some insurers may offer coverage for PECs at an additional cost, providing peace of mind and financial protection during your travels,” SCTI said,

6. Have equipment? Protect it

For photographers with cameras or musicians travelling with their instruments, it’s important to make sure insurance covers these items.

So far this year Australian travellers who have damaged or lost electronic equipment have made average claim amounts of $536, so it can be pricey.

“Standard policies may have limitations on high-value items, so it’s essential to check and add extra coverage if necessary to protect your gear from loss, theft, or damage,” SCTI said.

7. Understand your coverage for emergencies

A medical emergency is possible while travelling and it’s usually something Australians get cover for.

It’s important to know the extent of your medical coverage before traveling, SCTI said, with such incidents more common than you might think. SCTI has paid an average $12,459 for medical emergencies this year alone.

“Knowing the extent of your medical coverage can save you and your family from significant financial burdens and provide crucial support in emergencies,” SCTI said.

8. Cancelled or interrupted trips

As many Australians learned during the pandemic, trip cancellations and interruptions can occur due to unforeseen events, including illness, weather or family emergencies.

Insurance can cover you for the associated costs if it includes non-refundable expenses or penalties associated with shifting your travel plans.

9. What to know about rental cars

When it comes to coverage for rental cars, SCTI said it was important to remember that policies cover the rental car excess, not the value of the vehicle itself.

“It is likely that the cost of your travel insurance policy is less than any rental car excess you’d have to pay if you were uninsured,” SCTI said.

You’ll also need to ensure you have an international driving permit [IDP] as well as a valid Australian driver’s license, to drive overseas.

“These requirements can differ from country to country, state to state and even from rental company to rental company,” SCTI said.

“If you’re renting a car in the United States for example, you’ll need a valid driver licence, as well as an IDP in some states.”

10. Extreme sports

If you’re headed off on a more extreme holiday, like bungee jumping or white water rafting, you’re going to need to have appropriate insurance cover.

General policies won’t cover these activities, and SCTI said you’ll be covered only if you used a licensed travel insurance operator.

“Follow their safety instructions and wear all required safety equipment,” it said.

“Standard policies often exclude extreme sports and you may need specialist insurance coverage such as altitude-specific insurance if trekking in Nepal.”