Travel insurance a must-have inclusion

CANSTAR releases annual Travel Insurance Award report, assessing 225 international policies and 87 domestic policies across 75 insurers.

  • CANSTAR has assessed travel insurance for singles, couples and families, across a range of countries, as well as cruises
  • CANSTAR visitor search behaviour shows people are looking for cover for adventure sports – and terrorism
  • Minimum, maximum and average premiums travellers can expect to pay

 Plenty of Australians head overseas each year and travel insurance is a must-have inclusion, with insurance premiums representing a tiny percentage of the holiday costs.

“Travel insurance is a highly competitive market, on both the price and features of policies,” said CANSTAR Group Manager, Research and Ratings, Mitchell Watson.

Based on our research, a family looking for a domestic travel insurance policy for a 10 day trip can expect to pay just $120 on average. The same family heading to Bali would be looking at just $154 on average for a 10-day trip. That is a very small price to pay for peace of mind – and remembering that cancellation costs or medical emergencies while you’re away can potentially run into tens of thousands of dollars of cost.”

According to the Australian Bureau of Statistics, the top three overseas destinations for Australian residents in the 2016/16 year were New Zealand, Indonesia (including Bali), and the United States of America. For a 21 day family holiday, CANSTAR’s research has found that the average travel insurance premiums people could expect would be $198, $219 and $322 respectively.

CANSTAR has researched eligible travel insurance policies across four categories:

  • International Travel Insurance
  • Domestic Travel Insurance
  • South Pacific Cruise Travel Insurance
  • Seniors Travel Insurance


Canstar Travel Insurance

 

What travel insurance costs

For a 21 day holiday, CANSTAR has found the following minimum, maximum and average costs of travel insurance for various destinations:

For singles – 21 day premiums

Bali China Japan Thailand France UK Fiji New Zealand Brazil South Africa USA Australia Cruise- Aus Cruise – Pac
Min 40.78 49.90 53.98 49.90 56.05 56.05 37.50 37.50 61.95 56.05 71.11 38.23 37.50 37.50
Avg 111.04 125.39 130.38 123.02 131.66 127.56 103.50 101.79 156.78 149.81 162.17 83.01 96.97 106.34
Max 294.00 294.00 294.00 294.00 294.00 294.00 294.00 294.00 340.00 340.00 340.00 160.00 233.00 205.00

For families – 21 day premiums

Bali China Japan Thailand France UK Fiji New Zealand Brazil South Africa USA Australia Cruise- Aus Cruise – Pac
Min 73.40 97.19 97.19 97.19 112.10 112.10 67.51 67.51 123.90 112.10 128.00 68.82 67.51 67.51
Avg 219.42 249.11 260.02 243.56 263.95 257.18 203.00 198.15 311.15 303.32 322.37 160.92 192.92 211.61
Max 560.00 576.66 576.66 560.00 632.00 576.66 560.00 560.00 952.00 680.00 952.00 320.00 422.00 418.00

For senior couples – 21 day

Bali China Japan Thailand France UK Fiji New Zealand Brazil South Africa USA Australia Cruise- Aus Cruise – Pac
Min 171.17 223.76 223.76 223.76 239.14 239.14 166.15 156.92 254.86 254.86 282.18 138.00 138.00 198.51
Avg 542.30 643.61 686.32 612.98 699.84 656.24 506.61 507.21 831.31 792.31 852.77 326.93 438.66 490.85
Max 1564.08 1564.08 1564.08 1564.08 1564.08 1564.08 1564.08 1564.08 1808.80 1808.80 1808.80 680.96 1128.00 984.20

 

What travellers are looking for

Based on approximately 30,000 visitors to CANSTAR’s travel insurance comparison tables this year, the most popular specific inclusions that travellers want to be covered for are:

  • Terrorism
  • Motor cycle/scooter/jet ski
  • Snow sports
  • Water sports

“Coverage for terrorism is an interesting search feature,” said Mr Watson. “It’s not something that all insurers cover as standard but we really noticed a peak in the proportion of CANSTAR visitors looking for a travel insurance policy that covers terrorism after the Nice terror attack; in July,   almost 47% of visitors (46.84%) making a specific policy inclusion selection on CANSTAR’s travel insurance comparison tables were specifically looking for a travel insurance policy that covers terrorism. This is sharply higher than the ongoing average, which is around one-third of visitors.”

In November last year as well, after the Bataclan Concert Hall attacks, CANSTAR noted a spike in visitors searching for travel insurance that incorporates terrorism cover (43%).

“On a happier note, adventure sports are a popular activity overseas, whether on water or snow,” said Mr Watson.

 

Insurers that provide outstanding value

This year, CANSTAR is pleased to announce the following winners of the Outstanding Value Travel Insurance Awards.CANSTAR 2016 Outstanding Value Travel Insurance

Outstanding Value – International Travel Insurance

Outstanding Value – Domestic Travel Insurance

Outstanding Value – South Pacific Cruise Travel Insurance

Outstanding Value – Seniors Travel Insurance

CANSTAR congratulates the winners of each travel insurance category. Consumers can read the full http://www.canstar.com.au/star-rating-reports/travel-insurance/.

 

For further information:

Justine Davies

Editor in Chief

Ph. (07) 3837 4151  |  0400 127 733

justine.davies@canstar.com.au

 About CANSTAR

CANSTAR provides Australia’s interactive online research service in consumer and business finance. Founded in 1992, CANSTAR Pty Limited is Australia’s researcher of retail finance information for over 250 institutions such as Banks, Building Societies, Credit Unions, Finance Companies, Brokers, Mortgage Originators, Life Companies and finance related Internet Portals. CANSTAR customers use the extensive database for competitor analysis as well as a means of disseminating their product range. CANSTAR also distributes this information to print and electronic media for publication and to Agents, Accountants, Brokers and Internet Portals for use in advising their clients.

What are the CANSTAR star ratings?

 CANSTAR researches, compares and rates the suite of banking and insurance products listed below. Results are freely available to consumers who use the star ratings as a guide to product excellence. The use of similar star ratings logos also builds consumer recognition of quality products across all categories. Please access the CANSTAR website at www.canstar.com.au if you would like to view the latest star ratings reports of interest.

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Credit cards Personal loans
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Health insurance Travel insurance
Home & Contents Travel money card
Home loans Youth banking
Life insurance

 

COMPLIANCE DISCLOSURE and LIABILITY DISCLAIMER

 To the extent that the information in this report constitutes general advice, this advice has been prepared by Canstar Research Pty Ltd A.C.N. 114 422 909 AFSL and ACL 437917 (“Canstar”).  The information has been prepared without taking into account your individual investment objectives, financial circumstances or needs.   Before you decide whether or not to acquire a particular financial product you should assess whether it is appropriate for you in the light of your own personal circumstances, having regard to your own objectives, financial situation and needs.  You may wish to obtain financial advice from a suitably qualified adviser before making any decision to acquire a financial product.  Canstar provides information about credit products. It is not a credit provider and in giving you information it is not making any suggestion or recommendation to you about a particular credit product.  Please refer to Canstar’s FSG for more information.
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