Best Travel Insurance

Do I need travel insurance?

If you’re travelling overseas, travel insurance is as important as a passport. It will help cover the cost of things like accidents, illnesses, cancellations and delays while you travel - the Australian government will not cover these costs for you.

There are also some countries - like Thailand, Cuba, and all Schengen countries - which require you to have travel insurance to enter.

Do I need domestic travel insurance?

You don’t need to purchase travel insurance for domestic travel, but some people still choose to, typically for the following reasons:

• Cancellation costs, particularly if you’ve spent a lot of money on your trip.
• Damage, loss or theft of baggage, especially if you’re travelling with valuables or gear.
• Car hire excess.

Do I need travel insurance for a cruise?

You should purchase insurance for both international and domestic cruises.

Even if your cruise doesn’t leave Australian waters, Medicare (or your private health fund) won’t cover your hospital or medical costs once your cruise ship has left port. Cruises won’t automatically be included in all policies, but you can often find cruise-specific travel insurance policies.

What to consider when choosing a policy

This isn’t a definitive roundup of everything you should consider before deciding which insurance policy is the right one for you, but it covers the main considerations you should be making when deciding what’s right for you.

Ensure that you read a policy’s Product Disclosure Statement (PDS) carefully before you purchase it. This is a document that outlines all the inclusions, exclusions, limits, and other details of a policy.

Your destination

It’s a good idea to regularly check the Australian government’s Smartraveller website to see the safety status of your destination. Some countries have “Do not travel” warnings, and travelling to these places will likely void your insurance.

There are many countries on the “Reconsider your need to travel’ list. While an insurer may still cover you for these countries, if circumstances in a specific country change (such as escalation of political unrest), they could be moved to the “Do not travel” list.

The length of your trip

If you’re going for a single trip away, then you only need to buy a travel insurance policy for a fixed number of days. Those who travel often may want to consider taking out an annual multi-trip travel insurance policy. You can also get one-way travel insurance if you’re moving overseas.

What you'll be doing

If you have activities you’re planning on doing, you should take out a policy that will cover these. Many activities deemed to be “risky”, such as adventure activities like scuba diving or abseiling, may not be included in your policy. Your best bet is to call an insurance company to ask if you’ll be covered for your activities, and if not, whether cover can be arranged.

What you're taking

Whether or not you’re travelling with valuables, travel insurance can help cover the cost of loss, damage, or theft of your belongings. Cover can range from $100 to $25,000. If you’re not taking expensive items with you, then you can save on your premium by choosing a policy that provides less cover.

You should also check how a policy covers valuables; sometimes check-in luggage or baggage stored in a hire car isn’t covered.

Medical conditions

You should disclose any pre-existing medical conditions you have to your insurer.

Before purchasing a claim, ensure that any pre-existing ailment you have is covered, as even common medical conditions, like asthma, can be excluded under some policies. Some travel insurance companies will also cover change of travel plans caused by a mental health issue.

If you have a disability and are travelling with equipment such as a wheelchair or hearing aid, ensure that this is insured as well.

Excess

Travel insurance excess (also referred to as a deductible) is the agreed amount that you will pay towards a claim on a travel insurance policy. Once the excess is settled on a valid claim, then your insurance provider will pay the remainder up to the limit defined in your policy’s Product Disclosure Statement.

For example, if your excess on lost belongings is $200, then you’re responsible for paying the first $200 before your insurer will begin to pay for you.

Usually to keep your excess low, you have to purchase a high level of cover or pay a higher premium.

Exclusions

Exclusions are what isn’t included in your cover. A policy’s Product Disclosure Statement will list these exclusions, so make note of these as well as any activities or situations that will mean you won’t be covered.

Some common exclusions in travel insurance policies include:

• Activities deemed ‘high risk’, such as bungee jumping and riding a motorbike.
• Illness caused by a pre-existing medical condition.
• Loss or theft of luggage that is unattended or left in an insecure place.
• Travel to areas against official government advice.
• Accidents arising from you being under the influence of drugs or alcohol, or if you were acting recklessly.
• Costs related to pregnancy.

Limits

For travel insurance policies, there will typically be a maximum dollar value up to which you can claim for a single incident.

This is a particularly important consideration if, for example, medical treatment is extremely expensive at your destination, so ensure that your limits are suitable for where you’re heading.

Other things to consider

• Age: double check that your policy covers your age and those of the people you’re travelling with. Some insurers charge higher premiums for older travellers, and sometimes “older” can mean as young as 50.
• Premiums and costs of excess: You should always make sure that a policy’s premiums are within your budget, and that you can afford to pay the excess if something does happen.

How to use our filters to compare travel insurance policies

Here’s a quick overview of each specification to help you compare travel insurance policies and choose the right one for you.

Coverage Type

• Single Trip (Overseas): coverage for one standalone overseas trip.
• Multi-Trip (Multi-Trip): coverage for annual multitrips. A maximum days limit per trip applies.
• Medical-Only: basic coverage for medical expenses and assistance.
• Already Overseas: coverage if you've already left Australia and need travel insurance. A waiting period usually applies, between 24 hours and 72 hours.
• Domestic: coverage for domestic travel within Australia.
• Non-Medical: coverage for luggage and cancellations etc, excluding medical coverage.
• Vehicle Only: coverage for rental vehicle excess only.

Maximum Age Covered

• Many travel insurance policies have an age limit, so use the slider to view policies that will cover the oldest person in your travelling party.

Medical Coverage

• Use the filters to view policies that cover Pregnancy and Overseas Emergency Assistance if needed.

Luggage & Personal Effects

• Maximum Single Item Limit: the maximum you can claim per item, exclusions or different limits for different types of items may apply.
• Benefits Limit: the maximum total value of all your claims combined that you can be reimbursed for.

Ancillary

• Personal Liability: the maximum amount you'll be covered for if you become personally liable for any damage to other persons or their property.
• Motorbike/Moped Coverage: coverage dependent on engine capacity - see Details (use the Compare feature or view individual listings) and the insurance provider's Product Disclosure Statement for specifications.

Rental Vehicle Excess

• Limit: the amount your policy will cover you for if you become liable to pay any rental car hire excess as a result of damage or theft to a rental vehicle.

Special Activities Packages

• Special Activities: choose Snow / Ski, Cruise, Adventure / Extreme Sports and Golf if you want to be covered for any of these activities. They may be included in the policy, or an optional extra.
• For even more specific filtering, as Cruise and Snow / Ski are the most popular activities, choose between Included or Optional Extra to find policies that either already have these activities included or if you need to purchase an add-on for coverage.

Handy Tip: After using the filters to narrow down your options to view only policies relevant to your needs, use our Compare feature to view even more in-depth details, such as the maximum weeks pregnancy is covered for, emergency dental limits and specific single item limits.