Travel Insurance Cost

Secure a travel insurance policy for the right cost by comparing with Savvy.

Last updated on August 4th, 2022 at 05:05 pm by Thomas Perrotta

The cost of travel insurance explained

Travel insurance is one of the most important aspects of any holiday, international or domestic. That’s why it’s important to compare your options to help you find the right policy at an affordable cost, which you can do with Savvy.

We’re partnered with trusted Australian insurers to help make the process of choosing your travel insurer simpler. Compare your options in one place and pick out a policy at an affordable cost with more confidence today.

How much does travel insurance cost?

There are many key variables which go into determining the cost of travel insurance in Australia, so a policy for one person for a particular holiday may be notably cheaper or more expensive compared to that of another person taking out identical cover. The factors which impact the cost of your travel insurance include:

Your age and pre-existing conditions

Insurers look at your age as a key influence on the cost of insurance. Coverage for seniors over 65 is typically more expensive and will continue to increase with age; additionally, not all companies offer coverage for those in that age bracket, while others can insure travellers up to the age of 99.

Another factor here is pre-existing conditions, which are likely to either increase the cost of your premiums or simply not be covered by your insurer. If you have a pre-existing condition which you wish to access coverage for whilst travelling, it’s worth comparing your options thoroughly to find an insurer who can do so for the right price.

Your destination

Not all destinations are made equally when it comes to travel insurance. Where you choose to go will have a direct impact on the cost of your premiums, as companies will set different risk levels for different parts of the world. For instance, taking out a policy to travel to a country which has a reciprocal healthcare agreement with Australia, such as the United Kingdom, will likely cost substantially less than the United States, whose healthcare system is notoriously expensive.

The length of your trip

The longer you’re overseas, the more likely you are to make an insurance claim (in theory, at least). For this reason, policies taken out for long-term travel are likely to be substantially more expensive than those for shorter trips. The time of year you depart may also impact your premium price, as you may be able to take advantage of sales at Christmas time or the end of the financial year.

Your level of cover

There are two main types of travel insurance policy: basic and comprehensive. Of the two, basic is comfortably the cheaper option for travellers, as the coverage it provides isn’t as extensive. However, while it may save you money if you don’t end up needing to make a claim, it’s always best to be covered in the areas you need, rather than simply taking out the cheapest policy you can find and risk being caught short interstate or overseas.

Your covered events and activities

The cost of your policy will also vary depending on what your insured activities are. For instance, you could take out a basic medical-only policy which covers you for little more than expenses stemming from illness or injury, which would be a cheap way to access cover. However, if you were wanting to partake in activities which are more likely to result in you being injured and making a claim, such as snowboarding or other winter sports coverage, your insurance will cost more.

Your optional extras

Alternatively, if some of these activities or events are excluded from your policy’s primary coverage, you may be required to add them as an optional extra. This means you’ll pay a bit more for your policy in return for additional coverage. Of course, the more optional extras you add, the more your policy will cost overall.

How can I get the lowest-cost travel insurance for my needs?

When looking for the right travel insurance policy, it’s important to consider some of the ways you can potentially cut down on its cost. Finding a policy with the right coverage at an affordable price is crucial, so consider the following factors for reducing the cost of your travel insurance:

  • Increase your excess: the excess on your policy is the lump sum you agree to pay towards your expenses when you make a claim under your policy. By increasing your excess, you’ll reduce your premium, as insurers reward travellers who are willing to shoulder some of the financial burden.
  • Take out a group policy if you aren’t travelling alone: if you’re taking off on holiday with your family, it likely won’t be cost-effective to take out individual policies for each person. A group policy can cover up to 25 people, affording the same coverage to everyone across the board and typically working out to be cheaper overall.
  • Avoid coverage you don’t need: many holidaymakers pay more on their travel insurance than they need to simply because they purchase a policy which covers activities in which they don’t plan to take part. If you have no intention of going scuba diving, avoid policies which charge more for you to do so.
  • Buy a multi-trip policy if you’re a frequent flyer: rather than looking at a different policy for each trip, you could consider taking out an annual policy to cover all your jet setting over 12 months. This can be a real money saver for those who travel often.
  • Compare your options with Savvy: sometimes saving money is as simple as having a clear understanding of the options available to you. With Savvy, you can compare some of the top insurers in Australia and gain a clearer understanding of which are the cheapest and best for you.

How else should I compare travel insurance?

While cost is one of the major factors to consider when picking out your insurance policy, there are other areas to compare between different policies and providers. The main ones to think about are:

  • Inclusions and exclusions: does your insurance cover you in all the areas you need? Are there areas which are missing which may be important to you? For instance, if you have a pre-existing condition, are there any ways for you to get the coverage you need through your chosen policy?
  • Available countries: of course, you’ll need to be sure that your destination is covered by your insurance policy. This extends to any stopovers you may have, as having an accident or losing an item before you reach your destination could leave you without cover.
  • Types of policies available: not only will you have to think about whether to take out basic or comprehensive insurance, but it’s also important to consider whether your insurer offers policies which cater to your specific needs. Whether you’re travelling in a group, are older than 60 or 65 or are looking for cover for multiple trips, check that your insurer can support your needs.
  • Excess requirements: in most cases, travellers will be able to set their own excess as part of their policy, but different insurers may require higher minimums or offer greater potential maximums. It’s important to find an excess which is affordable for you.

What travel insurance covers

Common questions about the cost of travel insurance answered

What is the average cost of travel insurance in Australia?

As discussed, the cost of travel insurance varies widely based on your age, type of policy, destination and more, so the average cost of travel insurance may not be wholly representative of the policy you receive. For instance, while a short trip interstate or to a nearby country with basic cover could cost as little as $20, an annual comprehensive policy for a trip across the world could set you back hundreds of dollars.

Will it cost extra for COVID-19 cover on my travel insurance policy?

It may – some providers include COVID-19 cover as part of their comprehensive travel insurance policies, but this isn’t the case across the board. Some insurers may require you to pay extra to have medical treatment and cancellations as a result of COVID-19 included in your policy. It’s important to compare offers to make sure you take out a policy which covers you in the areas you need.

Can the items I cover increase the cost of my travel insurance?

Yes – if you’re insuring specific items, they can impact the cost of your travel insurance. For instance, if you have a brand-new laptop or smartphone which you’re bringing with you, your insurer will likely raise the cost of your premiums to compensate for the potential outlay if it goes missing or is damaged. When insuring items, it’s important to find a provider who can offer full, or as close to full, reimbursement as possible, as some lenders may only have caps of $500 to $1,000 for certain belongings.

Does travel insurance cost more if I’m pregnant?

If you’re close to the end of your pregnancy, you may find that some policies are more expensive to compensate for the increased risk of medical treatment (either giving birth or due to other complications). You can be covered for medical expenses caused as a result of your pregnancy up to 30 weeks in most cases, although some insurers will cap this at 26 weeks.

Will I have to take out insurance if I’m travelling for business?

If you’re travelling for business purposes, this should be covered by your employer’s policy, so you shouldn’t have to take out this policy yourself. Speak with your employer if you wish to make sure they have adequate cover. You may take out business travel insurance yourself if you’re a frequent flyer on behalf of your employer and may be able to claim your premium as a tax deduction.

Does it cost extra to lengthen my travel insurance policy?

This depends on the circumstances surrounding the lengthening of your trip. For example, if you’re forced to stay overseas longer due to illness or injury, you can have your policy extended for free by certain providers. However, if you’re simply choosing to stay interstate or overseas for longer, you’ll either have to pay an extra premium or take out another policy to cover yourself in this situation.