Best travel insurance

Everything you need to find the best travel insurance for your trip.

Best travel insurance

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.

What is the best travel insurance in Australia?

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.

How should I compare the best travel insurance policies?

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:

Premium

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.

Which is the best travel insurance company?

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.

What does the best travel insurance cover?

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.

Basic cover Comprehensive Optional
  • Lost or stolen luggage.
  • Cancelled/delayed flights, extra accommodation.
  • Personal liability.
  • Medical expenses.
  • Lost or stolen luggage.
  • Cancelled/delayed flights, extra accommodation.
  • Personal liability.
  • Medical expenses.
  • Rental vehicle damage.
  • Repatriation/evacuation.
  • Death.
  • Pre-existing medical conditions.
  • Personal affects.
  • Cruises.

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.

Top tips for keeping travel insurance costs down

How you can make the best travel insurance policies more affordable

Opt to pay a higher excess

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.

Think about what level of cover you really need

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.

Consider a group policy

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.

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Which is the best international travel insurance?

The best international travel insurance policies offer the highest level of coverage, because in foreign countries you should seek to minimize the impacts of unexpected incidents. For example, a policy which offers a high claim limit or even unlimited hospital cover would be the best policy for travel in The United States of America, as this country is notorious for the high cost of health care for those without health insurance.

Which is the best domestic travel insurance?

Although many of the risks of travel (such as hospital bills) are not as prevalent domestically as they are internationally, you can still benefit from a good travel insurance policy. The best domestic travel insurance should be purchased soon after making your travel arrangement, because this way, as soon as you have paid for you policy, you can be covered for any cancellations or delays that might occur even before you take your flight. Furthermore, insurance against damage to rental vehicles or lost belongings can be the difference between a ruined holiday and one free of stress.

Are there some things that even the best travel insurance policies won’t cover?

There are certain incidents that even the most comprehensive travel insurance will not insure you for. While you should consult with your insurer if there are any specific grey areas which you would like clarified, high-risk activities such as sky-diving or riding motorbikes, pre-existing medical conditions, or travel to areas which The Department of Foreign Affairs and Trade (DEFAT) have issued ‘do not travel’ warnings for are generally not covered by travel insurance.

Is it worth paying more for the best travel insurance?

It is up to the individual whether or not it is worth paying more for a better travel insurance policy. However, generally the best insurance is well worth it. While travelling is often an exciting and enjoyable time, it doesn’t come without its stresses. The added peace of mind you can enjoy by knowing that you won’t need to worry about accidents is arguably worth taking out a good travel insurance policy all on its own.

 

Do single trip or annual policies offer the best travel insurance?

Depending on your particular needs, both single trip and annual travel insurance policies can be of great value. If you are somebody who travels regularly, then an annual policy might be the best way for you to the most value for your money, as these policies can cover you for multiple trips over the course of the year. If you plan on taking less than three trips throughout the year though, then single trip policies will be your best option, as your relatively low frequency of travel will not justify the higher cost of an annual policy.

Do the best travel insurance policies still apply to one-way trips?

If you are only taking a one-way trip then a good travel insurance policy can still be of benefit to you. By taking out one-way trip insurance, you can be insured for cancellations, delays, lost luggage and more from the time you purchase your policy until you pass through immigration at your destination (unless travelling domestically of course).