Dream holiday turns to nightmare—and a $25,000 bill after this freak accident

The morning mist drifted above Italy’s Dolomite mountains as 72-year-old Ken Grady prepared his camera for what promised to be a breathtaking sunrise shot.

Moments later, a single misstep would turn a dream holiday into a painful ordeal—and a costly reminder for every Australian traveller.

What began as a picture-perfect morning quickly became an expensive lesson in what travel insurance truly means.

Ken and his wife Stephanie had joined a photography tour in the Dolomites last October, chasing the perfect landscape shot when disaster struck.

‘I stepped down from the grassy edge onto what looked like solid ground, but it was damp and my right foot twisted almost 90 degrees,’ Ken recalls.

What seemed at first like a sprain turned out to be far more serious. Ken had fractured his foot in three places—a tri-malleolar fracture requiring surgery, metal plates, and screws to walk again.

The ambulance ride to the nearest hospital took 30 minutes, marking the start of a long and difficult journey. Ken underwent surgery the next morning, then faced weeks of recovery in a wheelchair while managing flights and accommodation far from home.

What Medicare covers overseas—and what it doesn’t

Many Australians assume that reciprocal healthcare agreements will protect them abroad—but that’s not entirely true. Australia’s Reciprocal Health Care Agreement (RHCA) with Italy covers certain medical treatments through Italy’s public health system, and this safeguard spared Ken from even greater expenses.

Australians visiting Italy can access some Medicare benefits for up to six months, which covered Ken’s hospital stay and surgery. However, the protection stops there.

Ken and Stephanie were still left with $25,000 in out-of-pocket costs that Medicare couldn’t cover. Thankfully, their Southern Cross Travel Insurance policy reimbursed the entire amount.

The worrying trend among Australian travellers

Ken’s experience highlights a growing issue. A 2025 survey revealed that one in seven Australian travellers—around 14 per cent—went overseas without travel insurance, up from 13 per cent the previous year.

Younger Australians were even more at risk, with 23 per cent of travellers under 30 going uninsured on their most recent trip.

Why people skip travel insurance

The reasons many Australians give for travelling without cover show a concerning misunderstanding of the risks involved.

31 per cent believed their destination was safe.

27 per cent didn’t think insurance offered good value for money.

24 per cent admitted they simply forgot about it.

Ken’s accident in the seemingly serene Dolomites proves that even the safest-looking destinations can present unpredictable dangers.

The unique challenges facing senior travellers

For older Australians, the stakes are even higher. Age-related factors—such as slower reaction times, medication needs, and pre-existing conditions—can complicate even minor medical incidents overseas.

Travel insurance is no longer a luxury but an essential safeguard for all travellers. From medical emergencies to last-minute flight cancellations, comprehensive coverage ensures peace of mind wherever you go.

A growing market responds to demand

With awareness rising, the travel insurance industry continues to grow. In 2024, the Australian travel insurance market generated USD 352.4 million and is projected to reach USD 451.8 million by 2033.

Most travellers—around 73 per cent—now purchase coverage, though 13 per cent still take the risk of travelling uninsured.

Government warnings intensify

The Department of Foreign Affairs and Trade (DFAT) has made its stance clear on Smartraveller: travel insurance is ‘as important as a passport’.

‘You must take responsibility for your situation when you travel. This includes your finances. Consular services are not a "backup plan" if things go wrong and you need money. We expect all Australians travelling overseas to take out appropriate insurance for their trip,’ the government warns.

Making the right choice for your next trip

Ken and Stephanie’s story is proof that travel insurance isn’t about expecting disaster—it’s about being ready when the unexpected happens.

‘We've done dozens of trips to different parts of the world—Australia, the US, Canada, everywhere—and nothing's ever happened. This was the first time we had to make a claim,’ Ken reflects. ‘It was the first time we'd ever had to make a claim. We've always had insurance when we travelled... I wasn't sure how it would go.’

Their story is a powerful reminder that travel insurance isn’t just about covering hospital bills—it’s about safeguarding your freedom to explore without fear of financial ruin.

If you think Ken’s story was an unlucky one-off, think again—he’s far from alone in facing unexpected travel troubles that come with a hefty price tag.

Another recent story reveals how even the most experienced travellers are starting to question whether certain destinations are worth the risk.

From high medical costs to complex insurance challenges, this next piece dives into why some are rethinking where they choose to go next.

Read more: Older Australians Are Rethinking Travel to the US – Here's Why

Would you ever risk travelling overseas without insurance—or has experience already taught you why it’s not worth it?