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From Times Online

July 3, 2007

Ask our expert: gap travel insurance

Alex Rae has been out of the UK for more than six months and can't find a company that will insure her in Australia

Elizabeth Colman

Our daughter Alex, 24, left the UK on 30 April 2006 to go traveling, and bought a one-way ticket to Oz from STA Travel as she knew she was likely to be away for more than a year. At the same time she took out STA’s premier travel insurance for the year which expired on 29 April 2007. Foolishly she omitted to renew it so we contacted STA Travel on her behalf.

The advice we have been given is that if the policy had been renewed in time the period of cover could have been extended. As this was not done however they were unable to offer a new policy as she has been out of the UK for more than six months, she is currently working in Melbourne. STA Travel was unable to advise what to do next. My husband contacted BIBA who gave the contact details of four companies who they said should be able to help. We have contacted all four without success, it appears as she is currently out of the UK, and has been for six months or more, she cannot get a policy here.

I am sure other young people may also have found themselves in the same predicament and wonder if indeed the only option would be for her to try to take out a policy in Australia? Frances and David Rae, by email

Times Online travel insurance expert Elizabeth Colman responds: As you have discovered, there is not much Alex can do to secure UK travel insurance now that she is based in Australia. The rules are clear - you must renew your policy before it expires. Now that she is based in Australia her options are limited.

It may, however, bring comfort to know that the UK has signed a reciprocal agreement with Australia to ensure British citizens are given free access to free healthcare, which is known as Medicare. The agreement covers a public hospital stay and visits to some GPs, although Alex should check prior to making the appointment that the particular doctor is covered by Medicare. Ambulance rides are not included. Information on the reciprocal health agreement is available on the Department of Health website at www.dh.gov.uk.

Another option on the healthcare side is to take out an Expatriate Healthcare policy from PJ Hayman (tel. 0207 480 5083), a specialist gap year and backpacking travel insurer. The policy is available for a minimum of one year and costs between £381 and £1,400 depending on the level of cover and the excess. PJ Hayman will cover UK citizens who are living and working in just about any country that is not subject to an adverse travel advisory by the Foreign and Commonwealth Office.

The policy does not insure against pre-existing medical conditions which have been treated in the past year. It includes repatriation to the UK, although this is assessed on a case by case basis, and it is highly unlikely the insurer will repatriate for minor injuries only. The maximum cover available on a basic policy is £1 million, while the "select" policy will pay expenses incurred up to £5 million.

When it comes to insuring her personal posessions whilst living in Melbourne, Alex's best bet is to take out a local home and contents insurance policy.

If she is keen to do some further backpacking, she should take out an Australian travel insurance policy to cover these trips.

Elizabeth Colman is a business reporter for The Times

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