Travel Insurance

Are you travelling overseas? Looking to explore your travel insurance options? Savvy can help!

Last updated on April 21st, 2022 at 02:54 pm by Bill Tsouvalas

Compare travel insurance quotes

When travelling domestically or internationally, travel insurance is vital to protecting your finances should your travels be halted by an event. Picking the right travel insurance policy can be difficult so it’s important you know how to pick the best policy for you. Find out about the different types of travel insurance and how to compare them to ensure you get the best policy for your travel situation.

How does travel insurance work?

Travel insurance will protect you financially in the event of an emergency or accident whilst you’re travelling.

Cover for travel insurance can include both single-trip policies (from one day to 18 months), and annual multi-trip policies which will provide you with cover for all trips domestically and internationally within a year. In addition, you can take out cover for domestic travel insurance or international travel insurance.

Travel insurance gives you peace of mind knowing that should something go wrong on your travels, you will be insured and covered for the associated costs.

What are the types of travel insurance and what do they cover?

The two types of travel insurance are domestic and international travel insurance. Each type of travel insurance has many similar inclusions but also features exclusions distinct from the other to cater for the different needs of travellers when travelling in Australia or overseas.

Domestic travel insurance

Domestic travel insurance will provide you with cover for any travelling done within Australia. Inclusions will differ between domestic travel insurance policies but can include:

  • Cancellation of a trip unexpectedly as a result of an accident, illness, injury, or other various factors which are out of your control.
  • Lost or stolen luggage and personal effects.
  • Hire car excess should you have an accident in a rental vehicle.
  • Legal liability should you break a local law by accident.

A primary exclusion of domestic travel insurance is medical cover. However, as you’re in Australia you will still be covered under Medicare or perhaps a private health insurance policy if you have it.

International travel insurance

International travel insurance will provide cover for any overseas trips and features inclusions which are slightly different to domestic travel insurance. International travel insurance can include cover for:

  • Medical events or emergencies which require admission to a local hospital in a foreign country.
  • Lost or stolen luggage and personal effects (including passports and cash).
  • Cancellation of your trip due to unexpected circumstances including illness or injury, accidents, or other factors which are uncontrollable.
  • Legal fees should you require a lawyer for accidentally breaking a local law.
  • Repatriation cover to fly your body and belongings back home in the event of your death.

Travel insurance can cater for people in all types of situations. These include:

Types Types explained
Travel insurance for students

As a student it can often be difficult to save up for a trip away whilst working and studying. Student travel insurance will have a focus on cover for things more relevant to students such as cover for a range of sports and leisure activities which could result in injury. Student travel insurance can help protect the significant amount of money you have spent in the lead up to or whilst on your travels. However, if you are less than 16 years old you will be unable to take out travel insurance on yourself.

Travel insurance for seniors

Seniors travel insurance can better cater to your needs as an elderly person when on holiday. To be eligible for cover you may undergo a health assessment to determine if you must pay extra to cover a pre-existing medical condition which could increase the likelihood of you making a claim on your travel insurance.

Travel insurance for groups

When travelling in a group of up to 25 travellers, you may be eligible for discounts on your travel insurance premium. This option can also save time as the group will take out one policy as opposed to individual policies for all involved.

Travel insurance for families

Family travel insurance cover will insurer your partner and up to three children all under the same policy. Family policies will have greater to cater for the number of travellers covered under the same policy.

What are some common travel insurance exclusions?

The exclusions of travel insurance will vary between policies but can often include:

  • Cancellation costs due to a pandemic or epidemic.
  • High-value personal items unless you have told your insurer about them prior to taking out cover.
  • Snow activities including skiing and snowboarding. If you’re partaking in these activities, you will need snow cover.
  • Activities considered dangerous such as bungee jumping, sky diving, or scuba diving. While some travel insurance policies will cover this, others won’t, and you will need to take out additional cover to insure you for these activities.
  • Irresponsible or risky behaviour whilst under the influence of alcohol or drugs.
  • Breaking laws and/or local regulations knowingly.
  • Lost or stolen personal items when left unattended.
  • Suicide or attempted suicide.
  • Pre-existing conditions which you failed to inform your insurer about prior to taking out cover.
  • Riding a motor bike overseas. Can get cover if you have a motorbike license or are driving a low-powered motorbike.
  • Claims in the instance of not informing your insurer within a set time frame.

How much does travel insurance cost?

Without getting a quote for your individual travelling situation, you can’t tell the estimated cost of your travel insurance policy. The cost of your travel insurance will vary significantly based on a number of factors including:

Cost Cost explained
Your age and the ages of your travelling party

Your age will play a large part in determining how your traveling situation will be assessed. Older people are more prone to injury or illness whilst away and this could result in a more expensive cover. Younger people may be more inclined to take risks on their travels and this may be accounted for.

Destination of your travels

Travel insurance for travels to high-risk countries will cost more than low-risk countries. This could include parts of Asia, Africa, or South America.

How many travellers are on your policy

The number of people on your policy will contribute to the cost of your travel insurance premium. The more people under one policy, the more financial cover you’ll need as well as inclusions.

You and your travelling party’s pre-existing medical conditions

If you or a member of your travelling party has a pre-existing medical condition, you will be more inclined to take out cover for medical services whilst away. This will factor into your travel insurance premium.

If you’re doing any adventure sports

High-risk adventure sports increase your chance of injury whilst on your travels. This risk factor will be assessed and factored in when determining your policy’s premium.

Duration of your travels

The longer your travels go, the more likely it is you’ll make a claim on your cover. The shorter your holiday, the cheaper your premium will be.

The level of travel insurance cover you purchase.

Whether you take out a basic travel insurance policy with no add-ons or a more comprehensive policy will be a large contributor to your premium.

How do I compare my travel insurance options?

Top tips to consider when applying for travel insurance

Know your travel insurance policy’s inclusions and PDS thoroughly.

Before you commence your travels, you must be aware of all your inclusions and read up on your policy’s PDS. If something goes wrong whilst your away, it will be helpful to know if you’re covered and how to handle the situation.

Choose an insurer that provides a 24/7 emergency help line.

If an unfortunate event does occur and you need urgent advice on what to do, a 24/7 emergency helpline will be very valuable. They can correctly inform you of the next steps so you will be able to correctly claim benefits on your cover.

If you’re planning to drive or hire a car, make sure you have personal liability cover.

Should you be involved in an accident which damages another car or injures another person, personal liability coverage will be essential. Your personal liability cover limit should ideally be a minimum of $1 million to provide adequate cover should a claim be made against you.

Frequently asked questions about travel insurance

What’s the best travel insurance?

The best travel insurance depends entirely on your situation so it’s important to explore a range of options and consider various levels of coverage. An ideal travel insurance policy for you will cater for your budget needs and income, contain all your desired inclusions, including any activities planned for your travels, and have high benefit limits.

At what stage of my holiday planning should I purchase travel insurance?

Ideally, the best time to purchase travel insurance is when you have finalised the booking of your holiday. By taking out travel insurance cover as early as possible, you will be able to fully benefit from any cancellation. Cancellation cover will allow you to claim on any cost paid prior to travel if you need to cancel your domestic or international holiday.

Am I able to organise travel insurance after choosing to cancel my trip?

No – if you have already cancelled your trip, you won’t be able to take out travel insurance. An insurer is not going to allow you to take out cover if they will have to pay your cancellation costs straight . Waiting periods may vary between insurers but are usually approximately 72 hours.

What is an excess and how does it apply to my travel insurance policy?

An excess pertains to the amount you will be required to pay if you make a claim for an inclusion on your policy. The excess is agreed upon with your insurer prior to taking out your travel insurance cover. When you claim and pay the associated excess, your insurer will pay the remaining costs up to your specific inclusion’s benefit . A higher excess will reduce the costs of your premium, while a low excess will increase your premium’s cost.

Will my pregnancy be covered under my travel insurance?

Maybe – whether you’re covered for pregnancy under your travel insurance may be determined by how far along you are in your pregnancy and your doctor’s travel recommendations. You must speak to your insurer and read up on your policy’s PDS to fully understand any pregnancy cover limitations or exclusions tied to your cover.

Why do I need domestic travel insurance?

While it isn’t necessary, it can be beneficial to take out travel insurance when travelling domestically. Although utilising your cover is less likely when travelling domestically, it will give you peace of mind and protect you in a worst-case scenario.

Will I be covered under my travel insurance policy if I am injured whilst skiing?

Cover for skiing accidents varies between travel insurance policies. While some insurers will cover you for skiing, others may not, and you might be required to take out extra cover to insure you properly should an accident occur.