When booking travel plans, travel insurance can be one of your least significant costs, but this does by no means make it the least important.
To assist with your travel planning, you can find answers to all of your questions about finding the best travel insurance here, as well as an easy way to compare travel insurance policies to find the best one for you.
Australia has no shortage of excellent insurers who offer a wide range of travel insurance products to suit all types of customers. For this reason, the best travel insurance will depend entirely on your specific needs. In saying this, some things you should are:
The best travel insurance for budget travelers
For travelers on a budget who may want to keep their up-front premium costs to a minimum, the best travel insurance would be a basic policy that provides adequate coverage to help you through most medical incidents, but will not insure you for extraneous events such as damage to rental vehicles or expensive personal effects such as jewellery or cameras.
The best travel insurance for premium travelers
For those who want to take an overly cautious approach, or for whom a higher premium cost is of no concern, then a more comprehensive policy will be the best fit. Depending on the insurer, these policies cover almost all facets of your travel plans including the basics such as luggage and medical emergencies, but also death, cancelled bookings, personal liability and more.
The best travel insurance for regular travelers
People that travel multiple times in a year might find that the policy type most suited to them will be an annual policy. These policies provide cover to one or more travelers over a twelve-month period across multiple trips. This can both save money in comparison to multiple single-trip policies, as well as offer the added value of convenience to the traveler, who does not need to worry about organizing multiple policies for different trips.
The first place to go to compare travel insurance policies and find out which is best for you is Savvy, where you can compare the best travel insurance policies on the market right now in all the most important areas to help you make your decision. When making your comparison, you can focus on a few things which will make the process of deciding easier for you. These include:
Think about whether or not you are looking for an affordable policy with a low premium, or a policy that provides greater cover for you at the cost of a higher premium.
Areas and level of cover
The best policy for you will provide the right amount of cover for the right incidents. For example, if you are travelling light, your policy won’t need to insure you for $20,000 worth of stolen or lost luggage. Likewise, if health care is important to you, then you will want a policy that allows for a high value of claims for medical bills.
Single trip or annual
Single trip and annual policies offer better value to travellers who travel more or less frequently. If you are planning to travel several times throughout the coming year, then you will likely find that an annual policy will be best suited to you. On the other hand, if you have only one trip planned, then a single trip policy will be right for you.
Different customers will likely find that different travel insurance companies are best suited to them based on their circumstances. For instance, often companies who offer a range of different financial services will also offer discounts to customers who already utilise one or more of these. This means that if you already have home and contents insurance with one provider, then they might be the best fit for you, as they can offer the most competitive price. In some circumstances, you might find that because you have used travel insurance from a particular company in the past, then in exchange for your loyalty, this company will offer you a better deal if you sign up a second, third or fourth time.
Furthermore, you’ll need to consider the types of travel insurance companies when taking out a policy. There’s no shortage of quality budget insurers in the travel insurance space, many of whom can offer you a more affordable price than some of the more expensive, premium providers. This doesn’t mean you should rule out more premium providers, however, as you may find that they can offer a wider range of products overall and may have more comprehensive policy structures. In this way, your desired policy or optional extra may only be covered by a handful of insurers, big or small, particularly if you’re looking for a very specific area of coverage.
Lastly, many credit card providers offer travel insurance as a bundled product which can be easily activated when you decide that you will need it. A basic level of travel insurance is sometimes even provided for free with these credit cards, and can simply be upgraded should you wish to take out additional levels of cover. Because of the ease of access to this type of insurance, credit card customers might find that their credit card provider is also the best travel insurance company for them.
Because different travelers have such unique needs, the cover provided by the best policy will be different each customer. The table below provides a non-exhaustive overview of the basic cover provided by all policies, as well as the extra policy features which you can expect to receive with more expensive policies, or as add-ons.
It is important to note that each of these areas of cover will have a cap in terms of the dollar amount that you are covered for, depending on your particular policy, while not every insurer will cover all of them. If you have expensive belongings or travel planned, then make sure that your policy provides you with a high enough claimable total for the necessary areas of cover.
Consider whether you are willing to pay a higher excess in the event of a claim in exchange for paying a lower premium up-front. The chances of actually lodging a claim are generally low, so with this is mind, you can weigh up your options.
By evaluating how much cover you realistically need, you can save on your premium by keeping your claim cap low and not taking cover for areas that are not relevant to you. For example, a policy that insures you against rental car damage won’t be worth the extra cost if you plan on travelling by using public transport.
Think about taking out a multi-person policy if you are travelling with others. Bundling multiple people together under one policy can fetch a cheaper travel insurance premium resulting in savings for all members of your group.