Cheap Travel Insurance

Planning to travel? We’ve got you covered.

Last updated on May 4th, 2022 at 03:19 pm by Bill Tsouvalas

Cheap Travel Insurance

If you have travel plans arranged for the near future, you probably will have considered taking out a cheap travel insurance policy to help give you some peace of mind at an affordable price.

Here, you can find out all you need to know about finding affordable travel insurance and compare insurers to figure out what the best option is to suit your needs.

How do I get a cheap travel insurance policy in Australia?

While the cost of travel insurance in Australia can vary between budget and premium providers, there are several things you can keep in mind which can help you to find a cheaper policy.
  • Because different policies provide cover you for different events, you should make sure that in order to find the cheapest policy for you, you only take out a policy that provides the cover that you will need. For example, you may not need to take out health cover if your country, or the country you’re travelling to, is part of a Reciprocal Health Care Agreement (RHCA) with Australia. This means that your medical expenses can be covered by each country’s health care system. Some of the countries in this agreement include:
  • Italy
  • The Netherlands
  • New Zealand
  • Sweden
  • United Kingdom and Republic of Ireland
  • Generally, the lower the excess you choose to pay in the case of a claim, the higher your up-front premium will be. In order to keep your premium low, you can opt to pay a higher excess in the unlikely event that you do need to make a claim.
  • Consider the maximum dollar amount that you will likely need to claim. By opting for a lower cap on your claimable expenses you can potentially find a cheaper policy. For example, if you know that you would only like coverage for your luggage and disruptions to your flights, then you are unlikely to need to take out a policy with an uncapped claim total. Opting for a policy with a $10,000 cap might result in you saving money.
  • By bundling together the insurance policies of multiple travellers or insuring your family under one policy, you may also be able to save money on your premium.
While all these methods for saving money on your insurance policy are valid, remember that this doesn’t mean that you must follow all of them. By only doing a couple of these things you can still find a cheap policy that will meet your needs, and won’t make too large of a dent in your finances.

What does a cheap travel insurance policy usually cover?

Because travel insurance policies cater to a variety of needs, you should expect the cover available to roughly fall into the following categories:

  • A basic offering which includes emergency healthcare and medical expenses, limited compensation for travel disruptions and lost luggage, and other incidents.
  • Mid-range offerings with increased caps on claims for luggage and cancellations, with the addition of vehicle rental insurance, and cover for the very unlikely case of death.
  • Premium policies which offer nearly uncapped coverage for most categories and offer the most comprehensive protection.

Travel insurance policies on the cheaper end of the scale still provide a surprisingly thorough amount of cover across multiple categories for your trip. While different insurers’ offerings vary, as a general rule you can expect a lower-end policy to cover the majority of the important incidents that might derail your travel plans. The important caveat here is that some of these events might have lower benefit caps, so make sure that you look into this prior to taking out your policy. On the whole, you can expect the following if you choose to take out a cheap travel insurance policy:

Covered Not covered
Cheap travel insurance
  • Lost or stolen luggage.
  • Cancelled, delayed or missed flights.
  • Personal liability.
  • Health care/emergency medical bills.
  • Death.
  • Rental vehicle excess.
  • Repatriation/evacuation.
  • Pre-existing medical conditions.
  • Cruises.

Even though cheaper, basic policies will only cover a limited range of incidents, you will likely still find that if you do have extra, specific needs, then you will be able to pay slightly more for your premium in order for these to be included as well.

How should I compare cheap travel insurance?

The best way for you to compare cheap travel insurance policies to find the right one for you is to use Savvy’s online comparison tools. This can give you a quick, easy-to-comprehend overview of all of the best policy options based on your preferences. Some factors that you should bear in mind when trying to find the best cheap policy are:

Premium vs excess

Because you are trying to keep your costs down, you will probably find that a policy which offers you the choice to pay a lower up-front premium and a higher excess on any claims will be best suited to you, as opposed to the other way around.

Budget providers

By sorting your policy choices by cost, you will be able to identify insurers who cater specifically to savvy travelers on a budget. By making sure you look at the options provided by these insurers you will have the best shot at finding an affordable policy.

Level of cover

Although finding the most affordable policy is important, you should not necessarily choose the cheapest policy if the cover does not account for your needs. You might find that in the long run, a medium range policy with slightly better cover will be better for you than a budget option that provides the bare minimum.

Group policies

If you are travelling in a group, then you should try to find an insurer that can provide you with a group policy. These policies help all members of your group cut costs and are easier to manage.

What determines the cost of my travel insurance policy?

Top tips to keep in mind when buying cheap travel insurance

Weigh up the cost of your luggage

Many people will travel lightly on purpose and go without many of the luxuries of home when they travel. This might mean that when you think about it, the cost of replacing your lost luggage might be far lower than you think. By taking out a policy that offers a lower allotment for this purpose, you could save on your premium.

Think about your future plans

If you travel regularly, you might find that an annual travel insurance policy might work out to be more affordable for you than multiple single-trip policies. These annual policies cover you for a twelve-month period regardless of how many trips you take and can be helpful for avid travelers or business people.

Shop around

Just because one insurer’s policy is priced one way, that doesn’t mean that all similar policies will be priced similarly. It always pays to do your due diligence and to compare the best options with Savvy in order to make sure that you’re not missing out on important savings.

More questions on affordable travel insurance?

Which providers offer cheap travel insurance?

There is no shortage of providers in Australia that can offer you a cheap travel insurance policy. These providers range from larger, premium insurers such as Bupa, Allianz and Suncorp to smaller, more specialist providers like Budget Direct and 1Cover whose product range focuses on providing cheaper insurance. As you compare travel insurance providers you will notice that cheap travel insurance can sometimes be a reflection of the level of coverage you wish for as opposed to the provider themselves.

Are some destinations cheaper to find travel insurance for than others?

Yes – if finding a cheap insurance policy is important to you, then it is helpful to note that, in some instances, certain destinations will incur higher costs for your travel insurance policy. For example, domestic travel within Australia, or travel between Australia and New Zealand, will be considerably cheaper to find travel insurance than a trip to the United States. This can often be down to the cost of health care in foreign countries, with the United States being an example of one with particularly expensive health care, but can also relate to your insurer’s perceived safety of the country.

Is getting a cheap travel insurance policy worth it?

If you’re tossing up whether or not to take out travel insurance, then you will likely find that taking out a cheap policy will be worth it. Because of the reasonable cost of more affordable policies, the extra expense will not drastically impede your ability to travel freely or make other plans, but will offer you some extra peace of mind as you travel. The potential upside gained through having a cheap travel insurance policy up your sleeve will almost always outweigh the added cost to your holiday.

Why should I get cheap travel insurance?

The potential benefits of getting cheap travel insurance ahead of your planned travel are easy to comprehend once you consider the consequences of dealing with emergency situations without it. For example, imagine being hit by a car in New York as the result of an irresponsible driver. You have taken every precaution and are a sensible traveller, but some things are beyond your control. By quickly taking out a cheap travel insurance policy, you can vastly reduce the negative impact of these events, and their flow-on effects such as the cancellation of other plans, at minimal cost to yourself.

How can I make a claim on my cheap travel insurance?

If during your travels you encounter issues which are covered in your policy, then you can contact your insurer (do this as soon as realistically possible) in order to inform them of what has unfolded and begin your claim process. Most insurers can be contacted either online, or via phone 24 hours a day. Once your claim has been approved, your insurer will provide you with the assistance you need to get your travel plans back on track, or in some instances help you to find your way back home.

Can I purchase a cheap travel insurance policy if I’m travelling in a group?

If you’re travelling in a group then taking out a policy which covers everybody is a savvy decision that can actually save you money across the board. Not only can all of the individuals in your group save money under a group policy, but it can also make the process of managing your policy and lodging claims much simpler. This is because only one point of contact can handle all dealings with your insurer, which can ultimately save time for everyone.