The costly mistake backpackers make

How young backpackers who risk travelling the world without insurance could  

find themselves hundreds of thousands of pounds out of pocket 

This year, over 31,000 students are expected to defer their university courses to take a gap year, with many taking themselves off for adventure and new experiences abroad.  

With A-level results now in and trip planning underway, Gigasure, the insurance provider, is urging backpackers not to take risks when jetting off by ensuring they have adequate insurance to protect them for all eventualities. Failure to do so could cost backpackers hundreds of thousands of pounds if something happens while away.  

The insurance provider highlights the importance of getting a specialist backpacker policy which not only allows you to work* while away, it also protects you for longer periods abroad, visits to multiple destinations and activities and adventures more akin to backpacking trips.  

How much it could cost a backpacker in common situations if they don't have travel insurance in place: 

1. Cost of replacing your “lost” British passport in USA: £300

2. Breaking a leg in a motorcycle accident in Thailand: £15,000

3. Lost luggage in Africa: £370

4. Emergency repatriation from Spain: £40,000-£50,000 

5. Losing an Apple MacBook laptop in Australia: £1,990 

Data sourced from IMG Europe 

Ernesto Suarez, CEO, Gigasure: “For the same price as a £740 insurance policy**, a backpacker could fund an entire month of island-hopping in Thailand or three weeks exploring South America. And while this could be really tempting, without adequate insurance, one accident or lost bag abroad could wipe out not just the trip, but their whole budget and a lot more.” 

Here are Gigasure’s top five things to consider when purchasing backpacker insurance to avoid being hit by costly expenses: 

1. Lost documents: Losing your passport, travel documents or credit card is not only inconvenient when abroad, but it can also cost you thousands to replace or have replacements sent out to wherever you are. Choose a policy that will cover the cost of this.

2. Cancellation: When heading abroad for a long period of time, cancellations are highly likely, particularly if you plan to travel around a lot. Ensure that your policy will cover you for travel expenses, hotel or hostel bookings and transfers should you need to cancel, change or abandon parts of your trip.

3. Personal belongings: With the rise in remote working, there is a new wave of backpackers coming through, of those mixing travelling with working from anywhere. This means travelling with expensive equipment such as laptops, cameras, drones and more. Choose a policy that provides enough cover and will be able to help you replace the items quickly in the event of loss or theft. 

4. Working while travelling: Most backpacker travel insurance policies will allow the traveller to undertake a period of work while abroad, but the scope of work permitted under each policy will vary. Carefully check the details from your provider to ensure that your policy covers the work you will be undertaking, be that clerical, manual, voluntary, conservation or other. 

5. Activities: The benefit of travelling is the ability to enjoy new experiences and be spontaneous. Choose a policy that allows you to add specific cover instantly should these opportunities arise. 

Young people travelling should also make themselves familiar with the terms of their policy so they understand exactly what they are covered for. For example, if renting scooters in Thailand, the policy will only be valid if you have the relevant license, are wearing appropriate clothing, footwear and a helmet, and follow local traffic regulations. 

Backpackers travel insurance is specifically designed for extended trips and tailored to the needs of travellers who want to explore multiple destinations and engage in adventurous activities such as hiking, diving and other sports and working. Gigasure’s fully customisable policy can be instantly updated to fit with the travellers’ plans, adding temporary boosts for spontaneous activities like golf, skiing, or winter sports, this also saves money as you only pay for elements of cover when its needed, rather than paying for the duration of the policy. 

You can also add longer term extensions when buying your policy or after, such as adventure sports and gadget cover.  

The Back to Base benefit means travellers can return home up to three times during their trip, while policy holders who take the Max plan also benefit from Global search and Rescue cover which will help in locating and assisting the policy holder. This provides additional peace of mind to the traveller, and their family and friends, knowing they have additional resources available in case of an emergency while away.  

Ernesto Suarez, CEO, Gigasure: “Going backpacking or away on a gap year is exciting and travellers will be looking forward to having lots of new experiences and adventures. No one wants to think about something bad happening, but travellers want to know that if they need assistance while abroad, they are covered. We’ve specifically made our policy fully customisable with a just a few clicks in the app, so backpackers get a policy that fits in with them, not the other way around.” 

**Cost of a 13-month worldwide backpacker policy with Gigasure.