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 subject to other qualification criteria.
Another factor here is pre-existing conditions. Travelling with a pre-existing condition may result in you not receiving the coverage you need from some insurers, but there may be companies out there who can help you if you’re in this position. It’s worth comparing your options thoroughly to find out if there is an insurer who can offer you the cover you require.
Not all destinations are equal when it comes to travel insurance. Where you choose to go will have a direct impact on the cost of your premiums, as insurance companies 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 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 cover is the cheaper option for travellers, as the coverage it provides isn’t as extensive. Comprehensive insurance has higher claim limits and more benefits.
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 that covers you for expenses stemming from illness or injury, which would be a cheap way to access cover. However, if you're planning to do more adventurous or risky activities (such as snowboarding or other winter sports) you may have to pay more for an adventure pack to cover your chosen activities.
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 more of the financial burden.
- Take out a group policy if you aren’t travelling alone: some insurers offer group policies for travel parties as large as 25 people in some cases. This can be a cost-effective way to take out travel insurance. However, this will require everyone in the group to have the same level of cover, so if some members of the group require a higher level of cover, a group policy may not always be the best type of insurance for your travelling party.
- Avoid coverage you don’t need: some holidaymakers pay more for their travel insurance than they need to, because they purchase a policy that covers activities which aren't required. For example, if you have no intention of going scuba diving, you may not need a policy that covers this activity.
- 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 travels for 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 clear understanding of the types of cover available.
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, can you 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 potentially 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 that cater to your specific needs. Whether you’re travelling in a group, are an older Australian, or are looking for cover for multiple trips, check that your insurer can cover your insurance needs.
- Excess requirements: in most cases, travellers will have some choice about their excess, but different insurers may require higher minimums or offer greater potential maximums. It’s important to find an excess that is affordable for you.
Types of travel insurance
International travel insurance can offer cover for a range of events, including medical expenses, lost luggage or items, cancellation fees and more when you're overseas and a long way from home.
If you're journeying within Australia, domestic policies are designed to offer many of the same protections as international travel insurance (with the exception of medical expenses).
The most standard and common type of travel insurance, this policy can cover you for one trip starting and ending in Australia (and is available for both international and domestic travel).
As the name suggests, this type of travel insurance covers multiple trips over a 12-month period. Depending on your insurer, you may be able to take an unlimited number of trips up to 90 days each.
You don't have to have a return ticket booked to take out cover while you're overseas. One-way travel insurance enables you to access cover without a set end date, such as if you're moving temporarily.
You may need to take out specialist coverage if you're setting sail on a cruise. Fortunately, cruise insurance can cover emergency evacuation, cabin confinement and more.
Just because you're older doesn't mean travel insurance isn't still important. If you qualify for cover, seniors' travel insurance can offer greater peace of mind for included events while you're travelling.
Adding winter sports or ski cover to your policy can add protection against damage to your equipment, piste closure due to bad weather and activities such as back-country skiing, heliskiing and more.
Looking to enjoy some adventure sports on holiday? An adventure sports pack can grant you cover for a range of activities, such as hiking, scuba diving and motorcycle or scooter riding.
Jetsetting with the whole clan in tow? Some insurers offer family travel insurance, which enables you to include yourself, your partner and your dependent children under one policy to help you save.
If you're travelling interstate or overseas with your partner (or simply another friend or family member), you may be able to access a discount by taking out a joint or duo travel insurance policy.
Why compare travel insurance with Savvy?
Why compare hotels with Savvy?
What travel insurance covers
If you fall ill or are injured whilst overseas, you may be covered for some or all of the cost of medical treatment, depending on the policy you choose and eligibility terms and conditions. This could include standard consultations with a GP, treatment in a hospital or possibly transportation via ambulance or helicopter. You may also be covered for medical evacuations to Australia. However, if you sustain an injury as a result of an excluded activity, you may not be able to make a claim, which is why it's important to read the PDS carefully. Domestic travel insurance generally won’t cover medical treatment in Australia, as the provisions of Medicare treatment will still apply.
Common questions about the cost of travel insurance answered
Helpful travel insurance guides
Explore your travel insurance options for your next destination
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.