Written by Tiana Lee-Collins
Reviewed by Adrian Taylor
Last updated 30/11/2023
Travel insurance is a must-have for any prospective traveller wanting peace of mind on their trip. While there’s no definite answer to how much travel insurance costs because several factors influence the cost of protecting your adventure overseas, here are a few key takeaways you should know:
Our travel insurance expert, Adrian Taylor, has some first class tips for you on how to choose a suitable policy that fits your trips needs.
Most policies will allow you to choose the excess amount, and this will have an impact on the premium. Should you need to make a claim, the excess is the amount you need to contribute, so make sure you choose an amount that you can afford.
Most policies will include options to allow you to customise your cover. You can choose to include cover for cruise and ski trips, and also include cover for any pre-existing medical conditions, although this will affect the cost of your premium.
While premiums between products will differ, the cover (including the limits, benefits, exclusions and conditions) will vary. It’s always important to understand the policy to ensure you have the cover you need.
The cost of your travel insurance will be affected by how old the insured travellers are and, in some cases, the number and the age of any dependants travelling with you. As your age increases, usually so does the cost of travel insurance.
Senior travellers, for example, will normally have to pay extra for their coverage.
Your destination will also have an impact on your travel insurance cost. For example, in New Zealand and several European countries, Australia shares a Reciprocal Health Care Agreement that allows us to receive subsidised medical care. However, in countries like the USA, medical treatment is extremely expensive, so your insurance provider will charge more due to the size of medical claims in these destinations.
Generally, the longer your trip, the more likely you are to claim at some point along the way. This is why insurers need to know how long you plan to travel, as longer trips will have a higher premium. If you don’t know your return date, you can still purchase one-way travel insurance, but finding a budget-friendly policy can be more difficult.
There are generally three levels of cover available for overseas travel, and the cost of travel insurance is influenced by which type you choose. A policy with more inclusions and higher benefit limits will cost more than a policy that only covers you for hospital expenses and medical treatment.
All policies will usually also offer 24/7 emergency assistance, no matter the level of cover you choose. The three levels of cover are:
If you want coverage for certain activities that would otherwise be excluded, most insurers will offer some level of protection for an additional premium. Some common extras include:
Any pre-existing medical conditions you need cover for may impact the cost of your domestic or international travel insurance policy. While some pre-existing medical conditions may be automatically included in your cover, many (typically chronic or serious) conditions may be excluded from your policy.
If you need medical cover for any conditions while overseas, most policies allow you to declare them to your insurer, who will consider whether they can offer coverage and if they can, what additional premium (if any) is required. Some medical conditions can only be covered if you agree to pay an extra premium. This is because travellers with a pre-existing condition may be more likely to have medical issues and need to claim, and some issues may be more difficult (and costly) to treat.
It’s important to remember that declaring your condition does not guarantee coverage and will depend on your individual circumstances and the insurer.
Your travel insurance excess is the amount that you pay to your insurer if you make a claim on your policy. You can usually choose your excess amount; however, it’s important to always choose an amount that’s manageable for your budget.
If you choose a higher excess amount, your travel insurance premium will usually be lower. If you want to pay a lower excess, your travel insurance cost will be higher as a result.
There are various types of travel insurance which are tailored to different travel needs. When considering a travel insurance plan, your travel itinerary and the number of people you’re travelling with may impact which type best suits your journey. Some of these may include:
The insurance company you choose can significantly impact the cost of your cover. Prices will vary between insurers and policies, as will their inclusions, exclusions, limits and sub-limits. This is where comparing travel insurance quotes for different insurers, policies and prices all in one place can help you search for offers with great value for money for your needs.
Based on the above information, you can understand why it’s difficult to say exactly how much travel insurance costs, which is why travel insurance policies vary depending on a person’s individual circumstances. Change just one of the above factors, and the cost would change.
As of 7 July 2023, for a 40-year-old travelling alone on a single trip overseas to the United Kingdom from the 1st to the 15th of September 2023, there are 82 single trip policies available to them through our comparison service. A medical-only/basic policy could cost as little as $37, while a comprehensive policy is available for $94.
