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How much does travel insurance cost?
How much does travel insurance cost?
Written by
Rachel Gregg
Edited by
Ellie Garran
Reviewed by
Adrian BennettEasily compare Travel Insurance
Save time and effort by comparing a range of travel insurance policies with iSelect
Long story short
Travel insurance can help cover you from unplanned situations
Whether it’s stolen bags or medical emergencies, travel insurance can help cover the bill, depending on your cover level.
Your trip itinerary can affect what you pay
Your holiday destination, activities, and age can all impact the cost of your travel insurance, so make sure you understand what affects your policy price.
You can find ways to save on your policy
From changing your excess to find a travel insurer who offers a small discount for online policies, there are a few ways to trim costs without cutting coverage.
Why is travel insurance a good idea?
We all know holidays don’t always go to plan. One minute you could be soaking up the sun in Croatia; the next, you’ve lost your passport, your luggage, and possibly your patience. No matter what might happen, a travel insurance policy can make you feel more secure knowing you’re not stranded thousands of kilometres from home.
Medical coverage is one of the most common reasons people buy travel insurance. However, about one in six Australians still decided to fly overseas without any form of travel insurance in 2023.1Insurance Council of Australia – Travel insurance is as important as your passport Even if your budget is tight, travelling without cover is a gamble. Because yes, you might be fine, but you never really know.
From a stolen handbag to a surprise volcano eruption, you never know when things might take a turn for the worse. That’s why travel insurance is worth it. It can cover you for medical care, baggage, cancellations, delays, activities, and more. And if it brings you more peace of mind on your trip, that alone is probably worth the cost.
How much does travel insurance cost?
The cost of your travel insurance policy will depend on a range of factors (which we’ll get into the nitty gritty of below). But if you’re itching to start drafting your travel budget, here are a few weekly price estimates based on some of Australia’s favourite 2023–24 holiday destinations.
These average prices are for basic cover with no fancy extras. Keep in mind, your actual quote might look a bit different depending on your age, destination, activities, and any pre-existing conditions you need covered.
What factors affect travel insurance costs?
It’s no surprise that travel insurance costs depend on your individual itinerary. But did you know that a few other factors can come into play?
Where you’re going
A primary factor in the cost of your travel insurance policy is your destination. Since some countries will have a higher risk than others, your premium will usually reflect this. In some cases, when Smartraveller has issued a travel alert for a certain country, your insurer might agree and not provide cover if you are travelling there.2For more information, see Smartraveller – Home Some insurers offer grouped country policies, so just make sure all of your destinations are included beforehand.
How long your trip is
The longer you’re away, the more you’re likely to pay. If you’ve only one overseas trip booked in for the year, you can go ahead with a standard one-trip policy. But if you’ve a few in the works, it could be worthwhile looking at an annual multi-trip policy. So, make sure to browse all the policy options available to find the one that makes the most sense for your travels, especially since some annual multi-trip policies have caps on the duration of each trip.
What you plan on doing
A holiday spent lounging by the pool will have different risks compared to one involving jungle trekking and bouldering. For most policies, more thrills = more risk, and possibly a higher premium cost. Some common low-risk activities, like surfing and zip-lining, will likely be included in your policy. But for more adrenaline-filled ones, you’ll need to add some extra coverage to make sure you’re covered if something goes wrong.
Your age
Age is more than just a number to most insurers. Most travel insurance policies have a capped age limit. Some might cap their coverage at 90 years old, while others might not offer any age limits for certain policies. If you’re a seasoned traveller, it’s important to understand how any upcoming milestone birthdays (this could be 50 or older, depending on your insurer) can affect you. If you pass this capped age limit, there could be a higher excess on your policy.
Your level of cover
Most insurers offer comprehensive, basic, and medical-only policies to meet a range of budgets. However, if you want all the bells and whistles, there’s a range of extras, like snow sports, cruise holidays, adventure activities, and moped riding cover, so your policy covers you for all the right things (at an extra cost).
Pre-existing medical conditions
Not all pre-existing conditions will be covered by a travel insurer. To make sure your condition can be covered, you’ll need to let them know and take an assessment or questionnaire to confirm. If your condition is included, you could end up paying an additional fee, or you might find that your chosen insurer won’t cover claims related to your condition.
Helpful tip
Booking early isn’t just for flights and hotels. Buying travel insurance ahead of time means you could be covered for unforeseen situations that might make you cancel your trip before you’re set to leave. So, if you can’t make that flight due to something out of your control, you might be able to claim your cancelled flights and any lost deposits from affected accommodation (depending on the level of cover you got).
But if you forget until after you’ve landed, you might need to get an ‘already overseas’ policy, which could come with a greater excess and a no-cover waiting period.
Adrian Bennett
General Manager for General Insurance
Tips on reducing your premiums
While you might want to stretch your budget wherever you can, insurance is one thing you don’t want to skip. While it’s a necessary cost, there are still some ways to lower the price tag, so you can still squeeze that snorkelling tour into your holiday budget.
Buy early
Almost two-thirds of overseas travellers buy travel insurance on the day or the day before they’re set to leave.3Smartraveller – How to save money on travel insurance While this can mean a smaller premium, it also means no coverage if your flight gets delayed or cancelled before your trip even starts. So, weigh up whether the benefit of longer coverage is worth it or not.
Look into discounts
Some travel insurers may offer a discount for buying your policy online or for opting for a couples policy instead of a single one.
Reduce your excess amount
Many travel insurance policies give you the option to tweak your policy excess. If you opt for a higher excess, it can lower your premium, while a lower excess will raise it. Just make sure you can afford to pay the higher excess if you do need to make a claim.
Compare what’s around
The first or cheapest quote you find won’t always be the best option. Shopping around is the easiest way to make sure you’re covered for the right stuff while getting the most value. It also gives you more chances to find benefits relevant to your trip, while finding a cost that fits into your budget.
Compare travel insurance without blowing your holiday fund
Travel insurance doesn’t have to cost the same as your plane ticket. Whether you’re looking for a medical-only policy to match your backpacker budget or a comprehensive policy with snow sports to escape the Aussie summer, comparing travel insurance can help you find the best value for your trip. Start comparing travel insurance online from a range of providers and plans to find a policy that ticks all your boxes.
Easily compare Travel insurance quotes
Save time and effort by comparing a range of travel insurance policies with iSelect
iSelect does not compare all travel insurers or policies in the market. Travel insurance is only available through our website and not all policies are available at all times or in all areas. Not all policies available from our partners are compared by iSelect and due to commercial arrangements and customer circumstances not all policies compared by iSelect will be available to all customers. Click here to view iSelect’s range of providers.
iSelect General Pty Limited ABN 90 131 798 126, AFS Licence Number: 334115. Any advice provided by iSelect is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice iSelect gives you, having regard to your personal situation, before acting on iSelect’s advice or purchasing any policy. You should consider iSelect’s Financial Services Guide which provides information about our services and your rights as a client of iSelect. iSelect receives commission for each policy sold.