How Much Is Travel Insurance?
Wondering how much your travel insurance might cost? Compare with Savvy and find out today.
Fact checked
Travel insurance can be as essential as a valid passport and packed bags if you want to relax and enjoy your trip without fretting about the unexpected. If you’re wondering how much travel insurance costs, Savvy can help you.
By comparing with us, you can learn more about the factors determining how much you’ll pay for your policy. You can also do a quick comparison to help you save money and time, so before you jet off, compare with Savvy today.
How much does travel insurance cost?
The price of your premium depends on several factors, which can make it tricky to get an average cost on your travel insurance. How much you’ll pay for your travel insurance will depend on variables such as the provider you choose to purchase with and the level of coverage you need.
Suppose you’re travelling to Canada by yourself on a two-week holiday and you have no pre-existing conditions, are 30 years old and haven’t selected any extras. An indicative top-level coverage quote shows it would cost around $177. However, suppose you were 40 and wanted to travel to Bali for the same duration. In that case, you could expect to pay about $50 less with the same provider, demonstrating the flexibility of the pricing around travel insurance.
Below are some further examples of how the cost of travel insurance can change, based on a holiday period of two weeks:
| Destination | Cover type | Age | Premium |
|---|---|---|---|
|
Canada |
Basic |
30 |
$99 |
|
Canada |
Comprehensive |
30 |
$178 |
|
USA |
Basic |
75 |
$259 |
|
USA |
Comprehensive |
75 |
$518 |
|
UK |
Basic |
30 |
$74 |
|
UK |
Comprehensive |
30 |
$147 |
|
New Zealand |
Basic |
75 |
$130 |
|
New Zealand |
Comprehensive |
75 |
$274 |
*All premium estimates correct as of 13 September 2022
However, you can dip your toe in the water and get a few quotes on your travel insurance, which you can compare with Savvy to help you get the best price. Getting a quote is relatively easy and won’t lock you into purchasing a policy.
What factors can affect the cost of my travel insurance?
How much you pay for your travel insurance comes down to several variables. When shopping around for the best policy, it’s a good idea to know what can influence how much you pay for your insurance. Travel insurance is all about risk, so the greater your risk, the more you can expect to pay.
Some of the factors which can play a part in determining your premium include:
Age
The older you are, the more you can expect to pay for your travel insurance, as providers deem senior travellers more prone to accidents or injury while away from home. As a result, premiums tend to increase once you’re over 65 and you can expect to pay a higher excess for those travellers over 80. You can see this in the table above, with quotes for travellers at the age of 75 costing substantially more than those for 30-year-olds.
Pre-existing conditions
Travel insurance companies usually include a slew of pre-existing health conditions automatically under basic or comprehensive policies, covering illnesses such as asthma, certain types of diabetes and glaucoma. However, most insurers will charge you a higher premium if you have a more serious long-term disorder, such as a heart condition or multiple sclerosis.
Length of your trip
You can expect to pay more for your travel insurance the longer you’re away from home, as there’s more time for accidents or claimable incidents. If you’re looking to save money on your travel insurance, you could consider reducing how many days you’re away from home.
Any extras you need
Planning on doing some motorcycle riding while you’re on holiday or a spot of scuba diving if you’re sailing the coast of Queensland? You’ll need extra coverage, as these high-risk activities often aren’t covered under standard policies.
Your destination
Certain countries cost more for coverage than others. This usually comes down to the cost of medical treatment in the country you’re visiting, with those regions without universal healthcare costing you more for insurance. For example, travel insurance can be considerably more expensive if you're travelling to America compared to a holiday in the UK.
The insurer you choose
Shop around: it’s not just a Smokey Robinson song but a rule for purchasing travel insurance. The price of travel insurance varies between insurers, so it pays to get a few quotes and do a price match to find one with the level of coverage you need at a price tag you can afford.
Your level of cover
You are given the choice of basic or comprehensive travel insurance when purchasing a policy. Top-level cover is more expensive but offers you wider protection than basic cover. Take a look at your itinerary and what you’re travelling with and pick a type of travel insurance based on that.
How many people you’re insuring
Most travel insurance providers allow you to insure up to 25 people under one policy. While this is more expensive than taking out individual policies, it may help you save overall if you split the cost of the cover amongst your travelling party.
How should I compare travel insurance policies to get the best price?
Comparing travel insurance is one of the best ways to get the price on your policy. When making a quick comparison with Savvy, it's handy to examine a few factors and compare them between policies. These include:
- Cost: the best way of finding the most affordable travel insurance premiums and deductibles is to shop around and compare the policies. With Savvy, you can easily compare prices across many options side-by-side, saving you time and money.
- Benefits: although it would seem that all travel insurance plans cover the same things, there are often differences in what is and isn't covered. Therefore, you can find the best value for your money by comparing as many policies as you can, which you can do right here with Savvy.
- Excesses: the amount you pay out of pocket varies between providers, so it can pay to have a look around to find an excess that works for you. For example, some providers will make you pay between $100 and $250, while others won’t make you pay anything for certain events. A low excess isn't always the best, however, with a higher excess allowing you to pay less for your premium.
- Claim limits: depending on your provider, you may be able to get more or less money if anything goes wrong on your trip. Examine your choices quickly and choose a provider with sufficient claim limits for the duration of the journey you've got planned.
Top tips for saving money on your travel insurance
Shop around with Savvy
Taking the guesswork out of your travel insurance homework can save you time and money. By comparing with us, you get to consider the pros and cons of each policy so you can find a cheap option that gives you the coverage you need. Choose a higher excess
Choose a higher excess
Policyholders are required to pay an excess if they need to make a claim. If you pay a higher excess and take on a larger share of the cost, you can reduce your premium, saving you money when you pay for your insurance.Â
Consider if you’re a frequent flyer
If you're constantly in the skies or on the road, purchasing an annual travel insurance policy may be more cost-effective. Annual travel insurance covers you for a certain amount of travel (usually 90 days) across 12 months. This is often cheaper than taking out individual policies for every trip.
Read the PDS
While comparing prices for travel insurance, it's a good idea to review the relevant Product Disclosure Statements from each company. An attractive policy's lack of built-in coverage for items like a rental car's excess, for example, might end up costing you more money.
Frequently asked questions about how much travel insurance is
Helpful travel insurance guides
Explore your travel insurance options for your next destination
Disclaimer:
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.
