Dollar Saver tip #47
Save: $906
Tip overview:
Travel insurance premiums have risen since the pandemic, but you can still save.
For our 2023 travel insurance awards, we analysed 300+ travel quotes and found a difference of $906 between the cheapest and most expensive international policies.
It's clear that comparing can save you cash, but there are a couple of things to know about travel insurance pricing.
Firstly, you get what you pay for. Some basic policies have medical expenses covered and little else.
Did you know?
A Finder survey revealed almost 1 in 3 Australians (28%) – equivalent to 3.5 million people – suffered a travel mishap while abroad in the past 12 months.
Secondly, you might be able to shave money off your policy by buying it closer to your trip.
We ran a small set of quotes for a 1-week trip to the UK and found some price decreases of around 25%-30% when buying within 2 weeks of your travel date.
Ideally, it's always best to book as soon as you confirm your trip dates. It means your pre-trip cancellation cover will be valid for a longer time period.
But here's the flip. Taking out a policy in advance increases the risk you'll need to make a claim on your policy.
And an insurer might pass on this risk in the form of higher premiums.
Concerningly, a recent Finder survey found only 37% of Australians said they'd take out an insurance policy before travelling overseas.
All things considered, it's better to take out some cover late than none at all.