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One in every five (20%) Aussie travellers are putting themselves at financial risk (and potentially impacting their health, by choosing not to take out travel insurance) new research from Canstar has revealed.
The survey of almost 2,500 adult Australian travellers found that among those who took out travel insurance, the majority (51%) did so at the time of booking their holiday. However, 9% delayed getting cover until the week of their trip or even after the trip had already begun.
Flyers can still catch a fair deal, despite soaring premiums
Canstar’s 2024 Travel Insurance Star Ratings and Awards show that premiums for overseas travel have increased by up to 7% for older Australians and up to 6% for families. In 2023, a family of four might have expected to pay around $399 for travel insurance, assuming an excess of $200. In 2024, the average price rose to $424.
Despite the increase in travel insurance costs, though, Canstar analysis shows savvy travellers can still pack comprehensive insurance cover in their travel budget. Canstar has evaluated policies from 53 international travel insurance providers, analysing over 20,300 quotes across three cover types, multiple travel periods and a range of destinations to identify potential savings by switching to a top-rated insurer.
A Canstar 5-Star Rated policy offers value beyond just a competitive price. The research considers what is included in the policy, in addition to other features such as the ease of application, breadth of payment options, types of customer support services and the claims process.
On average it may be possible to unpack savings of $90 (27%) by switching to a Canstar 5-Star Rated travel insurance policy, compared to the rest of the market. For families, the savings could be greater at $136 (31%) or as much as $78 (28%) for solo mature travellers.
Can you save on travel insurance without sacrificing your level of cover?
Canstar Data Insights Director, Sally Tindall, says that 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 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.”
Tindall says that, while a single-trip travel insurance policy can sometimes cost hundreds of dollars, there are ways to cut down this expense. For instance, Canstar research shows a family of four could potentially save up to $136 just by comparing their options, without having to sacrifice on the level of cover.
Raising 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,” notes Tindall.
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.
“Travellers booking their holiday months out from the departure date should consider taking out comprehensive insurance at the same time they book big ticket items such as flights and accommodation. 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.”
Who are the top-rated travel insurance providers?
The Star Ratings not only highlight potential savings on travel insurance but also help Aussie travellers find the right policy by offering a shortlist of products that have been expertly assessed. The highest-performing policies in the Star Ratings are recognised with Outstanding Value Awards.
The 2024 Outstanding Value Award winners based on Canstar’s extensive research, include:
- International: Fast Cover, Huddle Insurance, InsureandGo, Southern Cross Travel Insurance, Tick
Travel Insurance and World2Cover Travel Insurance - Domestic: Qantas, Southern Cross Travel Insurance, Travel Protect and WAS Insurance
- Seniors: Fast Cover, InsureandGo, Qantas and Southern Cross Travel Insurance
- Cruise: Go Insurance, PassportCard, Qantas and World2Cover Travel Insurance
Cover image source: foto_and_video/Shutterstock.com
