Travel Insurance Cost

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

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, updated on September 4th, 2023       

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Compare Travel Insurance Quotes in 30 Seconds

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.

Your destination

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

Why compare travel insurance with Savvy?

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What travel insurance covers

Common questions about the cost of travel insurance answered

What is the average cost of travel insurance in Australia?

There are many factors that will affect the cost of your travel insurance, such as your destination, the length of your holiday, your age, the type of policy you choose to take out, and so on. Therefore,there's no one average cost of travel insurance which will apply across the board.

Will my insurance policy cover COVID-19-related incidents?

While some insurers will exclude epidemic or pandemic-related expenses under their policies, many are now offering cover relating to medical and cancellation costs which result from catching COVID-19 either before or during your trip. However, not all events will be covered. You also may not be covered if your claimable incident occurs within 72 hours of purchasing your policy. It’s important to compare your options thoroughly and determine what you’ll be covered for before you apply for your policy.

Will my pregnancy be covered under my travel insurance?

Whether you're covered for pregnancy may be determined by how many weeks pregnant you are, and also by your doctor's travel recommendations. It's important to speak to your insurer and read up on your policy's PDS to fully understand any limitations or exclusions linked to pregnancy. Some insurers can offer cover for pregnancy-related claims up to 32 weeks or more, but others cap this at 18 to 24 weeks (although these periods are subject to a range of other qualification criteria).

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 need to take out this insurance yourself. Speak with your employer if you wish to make sure they have adequate cover. However, you could consider business travel insurance yourself if you’re a frequent flyer (on behalf of your employer) and it's possible you may be able to claim your premium as a tax deduction, subject to seeking professional tax advice.

Will it cost extra to extend the length of 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.

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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.