Average Cost of Travel Insurance

Learn more about the average price of travel insurance when you compare with Savvy.

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, updated on September 4th, 2023       

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Compare Travel Insurance Quotes in 30 Seconds

Taking out travel insurance is a must whether you’re planning an international sojourn or a domestic getaway. However, you may want to know the average cost of purchasing coverage if you’re looking to save some money for your trip. If you do, Savvy can help.

You can see what factors influence the cost of your insurance and learn how to spot the best deal, not just the cheapest. Take the guesswork out of your travel insurance homework and compare a range of options with Savvy today.

What is the average cost of travel insurance?

Regarding the cost of your travel insurance, there is no ‘one size fits all’. Travel insurance premiums are calculated based on a range of unique variables, including the level of coverage you want, your circumstances and your trip. This means it can be hard to determine the average price of a policy. Some examples of how variables can change the cost of your travel insurance include:

  • If you're taking a solo trip to Europe, leaving on November 1 and returning on November 21. If you were 30 years old, you'd pay an average of $176 for a comprehensive policy and $68 for basic cover based on quotes from our partner insurers.
  • If you’re 30 years old and travelling to the US for a seven-week holiday leaving on December 12, you can expect to pay $215 for basic cover or $463 for a comprehensive policy.
  • If you’re 70 years old and taking a trip to Thailand, leaving on May 2 and returning on May 12, you can expect to pay $94 for a basic policy and $219 for a comprehensive one, based on an average of quotes from our partner insurers.

(All quotes correct as of 19 September, 2022)

What factors impact the cost of my travel insurance?

Numerous factors can affect the cost of travel insurance in Australia, so one person's coverage for a trip may be more or less than the person next to them on their flight. This is why the average cost can differ so widely for different people.

Travel insurance premiums are affected by the following variables:

Your age

How old you are will affect the cost of your travel insurance. In most cases, coverage for seniors over 65 years old normally costs more and the price continues to climb as you age. Not all companies will be able to offer you coverage in this age range, although some can offer policies to those aged over 100.

Your health

Pre-existing conditions may increase your premium or may not be covered by your insurance provider at all. If you have a pre-existing ailment and want travel insurance, compare policies to find the best deal.

Your destination

Travel insurance premiums vary depending on your destination. This is because companies weigh the various risks of different regions when calculating their price. For example, it costs more to travel to America than to Europe, as the US doesn't have universal healthcare.

Your policy’s benefits

The cost of your policy is largely down to what you're covered for on your holiday. For example, medical-only or basic cover will be considerably cheaper than policies requiring you to take out the extra cover for higher-risk activities such as bungee jumping, rock climbing or scuba diving.

The length of your stay

You're more likely to file a travel insurance claim the longer you are overseas, so long-term travel plans are often more expensive to insure than shorter stays.

Your level of cover

Travel insurance usually has two options: basic or comprehensive. Basic cover offers less coverage but is cheaper, while comprehensive provides a broader range at an increased premium. Choosing the more affordable option may save you money if you don't have to file a claim, but it's better to be safe than sorry and not risk being caught short if something goes wrong.

What types of travel insurance can I purchase and how much will they cost?

Travel insurance providers offer various products that suit a diverse range of travellers. It's important to compare these when searching for a policy, as one may serve you better than another, saving you both money and time.

Some of the options you have available include:

  • Comprehensive: this coverage is top-of-the-line, providing you with a broad range of benefits, including cover for lost, stolen or damaged luggage, travel delays and cancellations. You’ll generally be paying top dollar for this type of cover.
  • Basic: basic travel insurance offers you cover for the bare necessities, including overseas medical or hospital bills and personal liability, but won’t usually cover cancellation or your personal items. This is usually the cheaper option when compared to comprehensive cover.
  • International: want cover for a holiday to Serbia? International travel insurance policies offer protection for multiple incidentals while you're abroad, but most notably, the cost of medical treatment. The cost of these policies varies depending on the cover you choose.
  • Domestic: taking a trip around Australia or visiting a relative interstate? Domestic policies cover you for any cancellations, delays or damage or loss of your luggage while you're on the road, in the skies or at sea. This type of travel insurance is usually cheaper than if you were to take out an international policy.
  • Single-trip: if you don't take to the skies often, a single-trip policy may be the way to go. These insurance policies offer you coverage for one single journey over 12 months, which can be cheaper if you’re not a regular traveller.
  • Annual: annual or multi-trip travel insurance gives you coverage for a certain number of travel days (usually between 15 and 90) over 12 months. These policies are often cheaper than taking out individual cover for each trip you are taking.
  • One-way: don't have a return ticket booked? Most travel insurance providers allow you to purchase coverage for a one-way trip, which is usually more affordable and offers more flexibility than purchasing a single-trip policy.

Common questions about the cost of travel insurance

Does making a claim on my travel insurance increase my premium?

No – because you pay your premium upfront when you purchase your travel insurance, it's not affected if you claim other forms of insurance such as a car or home policy.

Are there any countries insurers which won’t cover my visit?

In most cases, you won't be able to purchase travel insurance to visit countries with a level three or four travel warning attached to them by the Australian government. Level three and four warnings mean a foreign country is experiencing an ongoing threat of terrorism, pandemic, civil unrest or violence. The federal government often changes these recommendations in light of world events, so it pays to keep an eye on the Smartraveller website so you're up to date.

Do I need to pay extra for travel insurance if I’m pregnant?

No – most travel insurance policies will cover you if you're up to 30 weeks pregnant with one child and haven't experienced complications with any past pregnancies. However, if you've had past complications or pre-existing conditions, you will need to declare these to be covered by travel insurance and may have to pay extra in some cases. Some common pregnancy complications include toxaemia, gestational diabetes and pre-eclampsia.

Does cover for COVID-19-related expenses cost me extra?

No – COVID-19-related costs, such as medical expenses and cancellation, are among the benefits automatically covered under your comprehensive travel insurance policy. However, basic coverage will only cover you if you fall ill and require medical attention. These may come with claim limits also, so be sure to compare different offers to ensure you get the best coverage for your needs.

If I’m suffering from terminal cancer, will it cost me extra for travel insurance?

In most cases, you won't be able to get travel insurance coverage for your cancer treatment if it’s terminal. However, if you have a non-terminal form of cancer, your premium will be higher because your risk of injury or illness is far greater.

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We do not compare all travel insurance brands currently operating in the market. Any advice presented above or on other pages is general in nature and does not consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

Savvy earns a commission from our partners each time a customer buys a travel insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via their websites.

Before purchasing your policy, we recommend you refer to the provider’s PDS for any further information on the terms, inclusions and exclusions.