10 hot tips to save on travel insurance
Heading off on an adventure but on a tight budget? Use these 10 simple tips to find affordable travel insurance that satisfies all your cover needs.
Key takeaways
- Even if you're travelling on a budget, don't skip out on travel insurance.
- Instead, there are some easy ways to save money on essential cover.
- Remember, the cost of not being insured if something goes wrong will be WAY worse.
1. Don’t buy from a travel agent or airline
Buying insurance cover at the same time as you book your holiday or your flights is super an easy and convenient, but it's also expensive. Travel agents and airlines add hefty commissions on top of the price of the policies they sell, so you end up paying more for cover than you need to.
It's a much better option to buy standalone travel insurance on a site like Finder (excuse the shameless self-promotion). There are plenty of cheap travel insurance policies around, but it will also save you on more comprehensive policies too.
That said, you should be buying your travel insurance asap, as soon as you book your trip, just in case something goes wrong before you leave!
2. Choose the level of cover that's right for you
Generally speaking, you'll find policies marketed as 'basic' or 'comprehensive'. There aren't formal categories or anything like that, so you'll need to check the details of each policy.
But broadly speaking, basic cover will include medical coverage and some basic cover for travel interruptions and delays. Comprehensive cover will have larger limits, but could also cover less common issues like overseas dental care, delayed luggage or loss of income.
Picking a policy that only covers what you need is a great way to save money, but it's important to make sure you don't short sell yourself. Having proper cover will make your holiday easier, more enjoyable and lower risk.
3. Avoid options you don't need
When you buy travel insurance, you may find that the cover you want or need isn’t included as standard. To tailor a policy to suit your trip, it may be necessary to add some optional covers to your policy, such as:
- Winter sports cover
- Adventure sports cover
- Golf cover
- High-value personal items cover
- Additional rental car excess cover
Of course, all of these options come with an additional premium, so make sure they’re actually essential for your holiday before adding them to your policy. By avoiding any unnecessary options, you can substantially lower the cost of cover.
4. Keep an eye out for travel insurance discounts
Why pay full price for anything when you can save money with a discount? There is always a wide range of travel insurance deals and special offers available, so why not check to see how much they can help you save? While you should never choose a policy based solely on an attractive discount, it’s definitely worth shopping around for a good deal.
Travel insurance discounts you may be able to take advantage of include:
- Promos and coupon codes
- Discounts for buying cover online
- Multi-policy discounts if you hold another type of cover (e.g. car insurance) with the same insurer
- Discounts for special customers and members – for example, as the customer of a specific bank, you may be entitled to discount travel insurance from the bank’s insurance partner
Just make sure that you take a close look at the features of any discounted policy before deciding whether it’s right for you.
5. Know your destination details
The destination(s) you choose to visit on your holiday can have a big impact on the cost of cover. First, where you go can play a part in determining the level of cover you need. For example, if you’re heading to the US, a policy that covers unlimited overseas medical expenses is essential to help you pay for treatment in that country’s expensive health system, but there are other countries around the world where you may not need the same high level of cover.
Second, the way in which your insurer covers your destinations also has an effect. For example, some insurers will ask you to nominate the region where you will spend most of your time while away, while others require you to select the furthest region away from home you will visit. So, if you’re spending the majority of time in a destination closer to home, it may be possible to find cheaper cover with some insurers.
6. Consider a multi-trip policy
If you’re a frequent traveller who takes multiple overseas trips a year, buying a separate travel insurance policy for each holiday can add up to be quite expensive. That’s why it’s worth considering an annual multi-trip policy.
These policies don’t just cover one trip, but provide cover for all the trips you take during a 12-month period. Limits apply to the maximum duration of any one trip, but apart from that, multi-trip policies offer the same benefits you’d expect from a single-trip comprehensive policy.
Best of all, you can enjoy substantial savings on the total cost of travel insurance over the course of a year.
7. Combine and save
Are you travelling with a family member or a close friend? If so, the total cost of each of you purchasing a separate travel insurance policy could be substantial.
However, if you join forces to buy combined cover under the one policy, you could access significant savings on the cost of cover. As long as you’re both happy with the level of cover the policy provides, this option is an easy way to save money on travel insurance.
8. Be honest and disclose everything
Got a pre-existing condition that insurers will only cover if you agree to pay a premium loading? Visiting an out-of-the-way destination that you’re pretty sure will push your premium up? Don’t give into the temptation of keeping information from your insurer just to save a little bit of money – while it might help you pinch a few pennies in the short term, in the long run, it could end up costing you big time.
If you don’t tell your insurer something that it has a right to know – be it a pre-existing condition, a destination you’re visiting or anything else – if that something later leads to a claim, your claim will be refused. On top of that, the insurer will probably cancel your policy altogether.
When you apply for cover, make sure to be upfront and honest, and to disclose all information relevant to your policy.
9. Vary your travel insurance excess
Another great way to save money on travel insurance is to choose a higher excess. Available as an option on some policies, this allows you to adjust your excess amount higher, which means you’d have to dig a little deeper into your own pocket if you have to make a claim.
The reward is a lower travel insurance premium and the amount you save may be more than you think, so it’s worth getting a quote with an adjusted excess to see if it could be worth your while.
10. Compare travel insurance quotes and shop around
Speaking of getting quotes, this is the last but perhaps the most important step on your journey to finding cheaper travel insurance. Getting travel insurance quotes online is quick, convenient and extremely easy. Using finder.com.au’s travel insurance quote engine, all you have to do is provide:
- Details of where you’re travelling
- Your travel dates
- The age of all travellers you want to insure
- Your email address
And then you can compare multiple quotes from some of Australia’s leading travel insurers. With several quotes at your disposal you can easily get a better idea of how much you can expect to pay for cover, and can then start comparing the features, benefits, limits and exclusions of individual policies.
With a little bit of research, you’ll soon be able to find affordable travel insurance that provides all the cover you need for your next trip.
Travel insurance - when to buy & how to save
More resources on Finder
More guides on Finder
-
Luggage Insurance: When baggage is a good thing.
Travel insurance for luggage offers cover against the cost of repair or replacement when your luggage and personal belongings are lost, stolen or damaged.
-
Basic travel insurance
Not sure if basic travel cover is worth it? Find out why covering the essentials is a smart move.
Ask a question
My wife & I are travelling from Sydney, Australia to Phuket. After staying there 6 days we will be travelling to Bangkok, Chiang Mai, back to Bangkok & then train to Penang, Kuala Lumpur, and Singapore. On the 5th of June we board a cruise liner back to Australia, stopping at 3 ports in Indonesia, Dili, 3 stops in New Guinea and Brisbane, before flying back Sydney on the 22nd June. Can you provide a quote for insurance to cover this trip. In Thailand we will be travelling both by air & train and train from Bangkok to Singapore.
Can you also provide a quote for 12 months cover as we intend to travel to Britain and Europe early/mid next year.
Hi John,
Thanks for your question.
If you would like to compare quotes from the insurers in our panel, please enter your travel details into the travel insurance form to compare quotes. Please make sure to read the eligibility criteria, features and details of the policy, as well as the relevant Product Disclosure Statement of the policy before making a decision and consider whether the product is right for you. If necessary, speak to the insurance brand to verify any details.
I hope this was helpful,
Richard
I wonder why travel insurance offered by Australia Post is not included in comparisons? I have used them for my last two trips. The first trip I ad to cancel (to UK) because my husband was critically ill five days prior to departure. AusPost were very prompt in settling my claim, paying the total amount with no problems. Highly recommend people consider them for travel insurance.
Hi Normygirl,
Thanks for your comment.
We have a dedicated page for the Australia Post travel insurance. Please make sure to read the eligibility criteria, features and details of the policy, as well as the relevant Product Disclosure Statement of the policy before making a decision and consider whether the product is right for you. If necessary, speak to the insurance brand to verify any details.
All the best,
Richard
A comment, not a question: I received a quote from a travel agent which was $1400. On went on-line and received the identical quote from the insurer they used (I placed the both 22 page policy statement side-by side) for $600.
There is very limited cover for preexisting medical conditions. A number of companies use a computer program rather than a proper medical appraisal. Do you know of any reasonable insurance cover from Australian or international companies?
A Comment not a question. In 2009 I went on a freighter cruise around the world with Zurich Insurance providing cover, from my home returning to my home. One ship was removed from service, another broke down for three weeks a third was nearly six weeks late to collect us at the designated port and finally, In a force 6 gale off Tahiti the ship went into a fifteen degree roll and the cabin furniture broke away from the bulkhead and knocked me off my feet resulting in Medivac to Tahiti and three weeks later a business class air trip back to Australia. Zurich insurance tried every trick in the book to avoid payment, e.g., ships sailed form non designated ports…Zurich said I broke the Freighter trip by flying to NZ to join the first trip. The Itinerary for the resultant Voyage was not as stated for insurance, etc. The Financial Ombudsman found completely in my favour and Zurich has to pay each and every claim as presented PLUS a 10% surcharge for trying to avoid payment. Trust Zurich? Never again, the claim took eleven months to settle!!
Hi Anthony,
Thanks for your question. Unfortunately, finder.com.au is a comparison service and not permitted to provide advice. There is no blanket answer as the treatment of a condition varies from person to person, and insurer to insurer. However, InsureandGo claim to consider all medical conditions.
I hope this was helpful,
Richard
A comment, not a question.
We have successfully used free travel insurance cover with Zurich Insurance, per the Bank of Melbourne’s platinum Visa card.
That was in Boston, USA, where we go annually. My wife contracted a respiratory infection & we had checked for suitability to fly. A 5 minute GP consultation cost $190 + $120 for ‘use of facilities’ (she walked in & out of the door, walked on the carpet & sat on a chair in the waiting room & another in the surgery.
I rang the insurance company toll free, from memory to Brisbane. When we returned home a few days later the money was in our bank account. The Excess was only $30. The quality of service was excellent.
It is a virtual policy until a claim is made. The policy handbook is comprehensive & I read it carefully each time we go. We are both now 71 but the policy applies to age 80. Last time over it saved us around $800.
The principal requirement is to take along on the trip the bank statement that records the transaction number for the ticket purchase. The simple way is to make an internet cash transfer into the Visa account, then effect the purchase.
My friends and family were unaware that I was covered by Zurich Insurance via Citibank platinum.
I am 63 years old. In Nov 2013 I collapsed in a coma in Sanur, Bali. I was hospitalised in Denpasar for 2 weeks and friends paid $50,000+ for air medivac to Darwin Hospital. I remained in a coma for about a month or so but fortunately was able to return home to Melbourne with family about 7 weeks after the initial hospitalisation.
Zurich Insurance were very professional to deal with and covered the Balinese medical expenses and the cost of emergency medical evacuation to Darwin. Detailed original receipts, medical reports etc were required. I highly recommend the Zurich backed free Citibank credit card insurance. The fine print is hard to find – READ IT CAREFULLY.