Travel Insurance

Find the right travel insurance provider for your next holiday by comparing your options here with Savvy.

Last updated on August 4th, 2022 at 05:33 pm by Bill Tsouvalas

Compare travel insurance quotes with Savvy

Whether you’re looking at booking an expansive overseas holiday or a quiet interstate getaway within Australia, it’s important to not find yourself caught with a hole in your pocket if not everything goes to plan. Travel insurance not only brings greater peace of mind to jetsetters but can also help you out when you’re in a bind.

You can find the right travel insurance policy for your needs right here with Savvy. We’re partnered with trusted and affordable insurers who can give you the cover you need when travelling. Compare your options right here with us and get started on securing the right travel insurance policy for your needs today with a quote.

What is travel insurance and what does it cover?

As the name suggests, travel insurance is a type of insurance policy designed to cover you for certain potential accidents or emergencies while you’re travelling. By paying insurance premiums for the duration of your stay overseas or interstate, your insurer will agree to pay for certain costs which may arise up to a pre-determined limit. The incidents which may be covered vary between providers and different types of policies, but some of the most common coverage areas include the following:

  • Medical assistance due to illness or injury (if travelling overseas)
  • Loss of belongings, such as luggage, or cash (including theft)
  • Fees associated with cancelling part, or all, of your trip
  • Damage to a rental car (covering its excess)
  • Personal liability if you’re found to be at fault for an injury to someone else or damage to their property

Your insurance coverage will also depend on whether you opt for a basic, mid-level or comprehensive policy. The more comprehensive the policy, the more you’ll have to pay but the fewer the number of exclusions, meaning you can have more peace of mind that you’ll be covered in the case of an emergency.

It’s important to take out travel insurance in the lead-up to your holiday, as not doing so and having one or more of these incidents occur could leave you significantly out of pocket. However, there are many factors to take into account when comparing a range of travel insurance policies, which is why you should do so right here with Savvy.

What different types of travel insurance can I choose from?

There are many different types of travel insurance policy which you’ll be able to choose from when considering your policy options. Different types of insurance will be better suited to different people, so it’s important to find one which best suits your needs. The main travel insurance types include:

International travel insurance

This type of policy covers individuals and groups travelling abroad. A good international insurance provider will cover all of the points listed above as part of their policy, with medical expenses perhaps being the most important of the lot. Australians often invest in travel insurance policies for this very reason, as medical expenses can often be very steep (particularly if the country you’re staying in doesn’t have a universal healthcare system). Being far from home can be a daunting prospect in this regard, so it’s important to cover yourself whilst travelling overseas.

Domestic travel insurance

If you’re travelling within Australia, though, you’ll likely only need a domestic insurance policy. While this covers most of the same areas as an international policy, medical generally isn’t included, given that your Medicare and medical insurance will still be in use if you haven’t left the country. In most cases, travellers will take out this type of insurance to protect against potentially steep cancellation fees should something go wrong in the leadup to (or on) the trip.

Single-trip travel insurance

Those who aren’t generally frequent flyers are more likely to look at a single-trip policy. This does what it says on the tin: it covers you for an individual trip. If this is the only trip you’re planning to make in the next 12 or more months, it’ll probably be the best travel insurance option for you.

Annual travel insurance

In contrast, those who are on the move more often might instead look to annual or multi-trip insurance. This is a blanket policy which covers all of your travel in a given year. If you’re travelling interstate or overseas regularly for work or travel, an annual policy will likely be the most cost-efficient choice for you.

Cruise travel insurance

This type of insurance, as you may be able to guess, is designed for travellers who are setting sail on a cruise. If you’re taking an international cruise, Medicare won’t cover any medical expenses accrued whilst on board, while domestic cruises could still leave you with a hefty bill if the doctor isn’t registered with Medicare.

Seniors’ travel insurance

Because age is a relevant factor for insurers when considering enquiries, there are specialist policies available for senior travellers. There are insurers in the market who can cover all travellers under the age of 100. Taking flight or setting sail doesn’t have to only be a young person’s game; you can access the cover you need as a senior and travel without the stress.

How should I compare different travel insurance policies?

There are several key areas to look at when comparing different travel insurance quotes, which you can do right here with Savvy. The factors to compare include:

Inclusions and exclusions

The main feature of policies you should look towards is what is and isn’t included. It’s all well and good finding a cheap travel insurance policy, but if it doesn’t cover you where you need it to, you may as well not take out insurance at all. For example, some of the most common exclusions on these policies include:

  • Medical expenses for treating undiagnosed symptoms
  • Unattended baggage
  • Valuables stolen from a locked car
  • Baggage lost after being checked in through your airline
  • Cancellation fee cover due to a demonstration or terrorist incident at your destination
  • Cancellation fee cover due to a natural disaster at your destination

Policies on pre-existing conditions

The most relevant exclusion for many, however, is pre-existing conditions. If you require medical attention due to a condition or disease which was already known about before travelling, most comprehensive policies won’t cover you. It’s important to check different insurers thoroughly if you have such a condition, as it may be important to find one which covers you where required. Some of the pre-existing conditions which can be excluded are:

  • Cancer
  • Heart conditions
  • Mental health conditions
  • Diabetes
  • Physical and mental disabilities

Cost of premiums

It’s also important to try to secure the most affordable travel insurance deal. Travel insurance, in many ways, is about striking the balance between coverage and cost: while basic policies will be the cheapest, they may not always cover you for what you need. As such, you should always compare the costs of insurance providers and policies which also afford you suitable cover.

Excess requirements

The excess on your travel insurance is the lump sum you pay when making a claim. You might look to a policy or provider which only requires you to pay a smaller excess, while there are some which may not charge an excess at all. However, in most cases, lower or no excesses will cost more in premiums, so it’s worth considering your priorities.

Optional extras

On top of the inclusions and exclusions, your insurer will likely also have a list of extras you can add to your policy. This may be a particular activity such as motorcycle riding or skiing. However, some insurers may include things like these in their comprehensive policy, rather than charging extra for them to be added, making it important to compare between options.

The factors which can affect the cost of your travel insurance

The pros and cons of travel insurance

PROS

Travel stress-free

When you have an insurance policy behind you, you’ll have the freedom to enjoy your holiday without the looming threat of running into trouble and paying a pretty penny for it.

Don’t pay the full cost

Should you find yourself in a situation where you’ve been given an extensive medical bill while abroad or lost a valuable item interstate, insurance takes the edge off paying for them.

Save money overall in the event of cancellation

Insurance saves you from losing out on thousands of dollars if a last-minute change of plans leaves you unable to make your overseas trip, as you can be covered for cancellation fees.

Tailor your coverage to your needs

By taking out travel insurance, you can craft a policy which reflects your needs as a traveller by selecting areas to include for coverage and tailoring your excess to suit your financial situation.

CONS

Potentially expensive premiums for no claim

If you don’t end up making a claim on your trip, you may have paid a substantial amount for something which didn’t end up being required (but it’s better to be safe than sorry).

May not cover pre-existing conditions

Travelling with a pre-existing condition may result in you not receiving the coverage you need, but there are insurers out there who can help travellers in this position.

Frequently asked questions about travel insurance

Will my insurance policy cover COVID-19-related incidents?

While many insurers will exclude epidemic or pandemic-related expenses under their policies, many are now offering cover relating to cancellation costs which may come about due to catching COVID-19 either before or during your trip or becoming a close contact. However, not all events will be covered, such as lockdowns in your state or cancellation or additional quarantine costs as a result of becoming a close contact. It’s important to compare your options thoroughly and determine what you’ll be covered for.

Will my pregnancy be covered under my travel insurance?

Whether you’re covered for pregnancy under your travel insurance may be determined by how far along you are in your gestational cycle and your doctor’s travel recommendations. It’s important to 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. In most cases, you can be covered for pregnancy-related claims up to around 30 weeks, but some insurers can offer cover up to 36 weeks (although others may cap this at 18 to 20 weeks).

How long before my trip should I purchase travel insurance?

You should look to buy a policy well in advance of travelling to ensure that you’re given the best chance of being covered should there be any cancellations in the weeks and months leading up to it. You can take out your policy as many as 12 months before travelling.

Why is it important to read the Product Disclosure Statement?

Your insurer’s Product Disclosure Statement (PDS) is a document which outlines everything you’re covered for under your policy. It’s crucial to consider this when comparing your options so you’re clear on what is and isn’t included.

Am I able to take out travel insurance for a group of people?

Yes – insurers also offer group policies for travel parties as large as 25 in some cases. You may find that this is a more cost-effective way to take out travel insurance, as well as more efficient compared to taking out multiple individual policies. However, this will require everyone to have the same level of cover, so if certain members of your group need more than others, a group policy may not always be the best type of travel insurance.

Can I take out a travel insurance policy if I’m a student?

Yes – students are able to take out travel insurance in the same way as any other type of traveller. It’s important to note, though, that you won’t be able to purchase an insurance policy if you’re under the age of 16. In this event, a parent or guardian will be required to do so.

Should I just use the travel insurance offered by my credit card?

Travel insurance through your credit card provider may be a free service offered, but it’s unlikely to provide you with the same coverage as a standalone policy. These are known to come with a greater number of exclusions and more detailed conditions which are required to be met. You’re likely to be better off taking out a separate policy to ensure you’re adequately covered.