How much is travel insurance in Australia?
The average international travel insurance policy in Australia costs $317, according to research from Canstar’s 2025 Travel Insurance Star Ratings and Awards. This is actually a decrease of about $10 from the previous year’s figures. Families wanting to protect themselves and their belongings will notice the biggest cost decrease, with family policy prices falling by approximately $15 (3%).
Change in average international travel insurance premiums
2024 | 2025 | Difference | |
Single | $211 | $198 | $13 |
Couple | $386 | $379 | $7 |
Family | $438 | $423 | $15 |
Mature Single | $273 | $266 | $7 |
Overall | $327 | $317 | $10 |
Source: Canstar. Based on a selection of international policies rated in both of the Canstar 2024 and 2025 Travel Insurance Star Ratings & Awards (November 2024, November 2025). Premiums include quotes for a range of destinations and travel periods, with a target excess of $200.
Canstar’s Data Insights Director, Sally Tindall, says when it comes to holidaying overseas, travel insurance should be the second thing you cross off your packing list after your passport.
“If you need medical help overseas and you’re not in one of the 11 countries that have reciprocal health care agreements with Australia, you’ll be the one footing the bill – unless you have travel insurance.
“In fact, some hospitals may not even let you in the door unless you can show them proof of insurance or you make a down payment of your own.
“Insurance might be the last thing you want to shell out money for when booking a holiday, but it will be the first thing you thank yourself for having if you do need to make a claim.”
What determines the cost of travel insurance?
How much you end up paying for a travel insurance policy will depend on several factors including:
- Where you’re travelling to and for how long
- Your age, as well as the ages of those who you want covered by the policy
- Any pre-existing medical conditions you or the other people you want covered by the policy have
- The type of policy, like medical-only or comprehensive, and the provider you choose
- Any extra forms of cover you choose to add on to the policy, like cover for skiing or for going on a cruise.
Why is travel insurance expensive?
There are several factors that influence the cost of travel insurance in Australia:
- High overseas medical costs: Popular travel destinations, like the United States of America and some European countries, have very high medical costs when compared to Australia, and often have no reciprocal health care agreement in place.
- COVID-19 and other pandemic-related risks: Thanks to COVID-19, there’s now an increased awareness that trip cancellations, medical evacuations, and disruptions may occur while abroad due to infectious diseases.
- Natural disasters and geopolitical events: Earthquakes, cyclones, and floods, as well as geopolitical events like international conflicts and civil unrest, can cause unexpected delays or cancellations to your trip.
- High claim rates: Overseas travel is very popular in Australia, especially since our country shares no land borders with any other. As a result, more Australians take out travel insurance, and claim numbers generally go up.
- Currency fluctuations: The Australian dollar can rise or fall due to economic conditions. This can reflect how far that dollar would go in other countries, which can be a concern for countries with already highly priced medical care.
- Broader coverage: Higher priced comprehensive travel insurance covers travellers for more unexpected situations like emergency medical care, trip delays and cancellations, loss or theft of belongings, legal liability, and repatriation.
- Age and pre-existing conditions: If you’re an older Australian or someone with a pre-existing condition, you may face higher premiums due to the increased risk of claims.
- Customisation and additional add-ons: The cost of a travel insurance policy can also increase depending on any additional features or coverage needed. This could be anything from cover for rental vehicle excesses, kennels and catteries for your pets while you’re away, adventure sports and activities, expensive items, travelling while pregnant, cruises, and even cover if you suffer a loss of income or a permanent disability while overseas.
How to save on your travel insurance premiums
A great way to save while still getting quality cover is by comparing your travel insurance options before you buy. Premiums for Canstar’s Award winning international travel policies can be 24% cheaper on average than the market average.
| Award winners | Market average | Difference |
Single | $159 | $190 | $31 |
Couple | $278 | $364 | $86 |
Family | $278 | $406 | $128 |
Mature single | $203 | $256 | $53 |
Overall | $230 | $304 | $74 |
Source: Canstar. Based on a selection of international policies rated in the Canstar 2025 Travel Insurance Star Ratings & Awards (November 2025). Premiums include quotes for a range of destinations and travel periods, with a target excess of $200.
Tips for cutting travel insurance costs
Reviewing several policies before signing on the dotted line is one of the best ways to know you’re getting the right cover for your needs and budget.
Ms. Tindall says, “While a single-trip travel insurance policy can sometimes cost hundreds of dollars, there are ways to cut down this expense. Canstar research shows a family could potentially save up to $128 just by comparing their options, without having to sacrifice on the level of cover.”
“Take the time to tailor your cover to suit your needs, consider an annual policy if you travel often, and opt for a higher excess to lower your premium.
“Reducing your excess or opting for a lower level of cover can also help reduce costs but these options come with increased risks. Basic travel insurance typically does not include cover for cancellations, travel delays, lost luggage, and all the other things that could easily upset your holiday.
“That said, if it's a choice between having cover for big medical emergencies and no cover at all, then having something is better than nothing.”
Does travel insurance get cheaper closer to the travel date?
While travel insurance may not necessarily get cheaper the closer you get to your travel date, you may find there’s a sweet spot as far as pricing is concerned. Canstar Research suggests this could be around two weeks prior to your trip, as booking too far in advance adds time to the policy and increases the likelihood of you making a claim for trip cancellation, whereas leaving it to the last minute may suggest to the insurer that you’re unorganised.
That said, taking out travel insurance closer to your travel dates could have undesired effects. You may not be able to claim for certain large purchases, like your flights or accommodation, if the policy wasn’t active when you made them.
“Travellers booking their holiday months out from the departure date should consider taking out comprehensive insurance at the same time they book these big ticket items. That way if unexpected circumstances mean you don’t end up taking the trip, you may be able to make a claim and recover your losses—although it will depend on why you cancelled,” says Ms. Tindall.
Canstar’s 2025 Travel Insurance Star Ratings and Awards
Canstar compared quotes from 53 international and domestic travel insurance providers to determine those offering outstanding value to Aussie travellers. The ten Outstanding Value Award winners for 2025 are:
- International: 1Cover Travel Insurance, PassportCard, Southern Cross Travel Insurance, Travel Protect, Was Insurance, World2Cover, Zoom Travel Insurance
- Domestic: PassportCard, Qantas Insurance, Travel Protect, Was Insurance
- Seniors: 1Cover Travel Insurance, FastCover, PassportCard, Zoom Travel Insurance
- Cruise: PassportCard, Southern Cross Travel Insurance, Tick Travel Insurance, Travel Protect, Was Insurance, World2Cover
