How to save on travel insurance: 10 crucial tips to avoid overpaying
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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.

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Jessica Prasida
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Important:

Travel insurance rules continue to change as a result of the coronavirus pandemic. We’re working hard to keep up and make sure our guides are up to date, however some information may not be accurate during the pandemic. It’s even more important to double-check all details that matter to you before taking out cover. Please know that some policies may not be available through Finder at this time. Here are some helpful tips:
    • If you're buying a policy today, it's unlikely that you'll be covered for border closures
    • If your travel plans go against government advice, your policy will most likely be voided and you won't be covered
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    What's in this guide

    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 undoubtedly an easy and convenient option. Unfortunately, it’s also an expensive one.

    Travel agents and airlines add hefty commissions on top of the price of the policies they sell, which basically means you end up paying a whole lot more for cover than you need to. In fact, a 2015 study by finder.com.au showed that buying travel insurance through an airline is three times more expensive than necessary, while buying from a travel agent means cover is two-and-a-half times more expensive.

    So how can you find the cheapest travel insurance? You buy your policy direct from the travel insurer. It’s quick and easy to compare and choose policies online, and buying cover straight from the source can save you a whole lot of money.

    2. Choose the level of cover that's right for you

    Generally speaking, there are three levels of travel insurance cover available:

    • Basic
    • Medium
    • Comprehensive

    The benefits provided increase with each step up to a higher level of cover, but so too does the cost of travel insurance. With this in mind, it’s important to have a long, hard think about which level of cover is right for your trip.

    The answer to this question will be influenced by a few key factors:

    • What you need cover for. There are some travel insurance benefits, such as cover for overseas medical expenses and trip cancellation costs, that are simply essential. The need for other benefits will vary based on your personal circumstances and travel plans – for example, if you’re hiring a car you may decide that rental vehicle insurance excess cover is a must.
    • The level of cover you feel comfortable with. Some people will only feel comfortable heading away on holiday if they have travel insurance that provides comprehensive protection. Others are much happier to purchase basic cover for a few key worst-case scenarios and then just take their chances for the rest of their holiday. Think about how much risk you’re willing to tolerate before choosing a policy.
    • Your budget. Cost is always a crucial factor when choosing travel insurance. How much can you afford to pay (and how much are you willing to pay) for travel insurance?


    Once you’ve considered the above factors you’ll be better placed to choose a travel insurance policy. If you want to save money, choosing a lower level of cover is a simple way to reduce your travel insurance premiums.

    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

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    warning Finally, some good news! Domestic travel is picking up, so some insurers have started offering cover again 🦘
    Just remember, you won't be covered for any pandemic related claims if you do take out domestic travel insurance.
    International travel insurance is limited and sometimes unavailable at this point.

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    41 Responses

      Default Gravatar
      BrendanAugust 5, 2015

      how do bank provided E.g as part of my Visa card with WestPac, I get “free” travel insurance. Are these just basics or are they value for money given bank fees I pay?

      Reply
        Avatarfinder Customer Care
        RichardAugust 6, 2015Staff

        Hi Brendan,

        Thanks for your question.

        Your complimentary travel insurance will come with certain conditions and limitations. If you would like to know more, please have a look at our guide to the benefits and features you get between credit cards and standalone 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.

        I hope this was helpful,
        Richard

        Reply
      Default Gravatar
      JenniferJune 16, 2015

      thanks for your replies re pre-existing conditions. A tip, do not fill in the PEC form on line, ring the company & insist on doing it via the PEC assessor.
      I always get knocked back on line, but accepted on the phone. Been with Covermore since early 90’s. With PEC you need to build up a long term relationship so they can monitor how your condition is going as time passes.

      Reply
        Default Gravatar
        DisgruntledJuly 28, 2015

        This is not a question, it is a serious recommendation.

        Make absolutely sure you get a copy of your responses to the insurance questionnaire before committing to a policy. Yes, do it over the phone not on-line or in a travel agency.

        I was accused of omitting information about a claimed pre-existing medical condition by a well-known travel insurance company mentioned in one of the responses published below when I had to cancel travel because of emergency surgery for a condition I was aware of at the time of application.

        This was not the case but they refused to believe me. The insurance company refused my refund for months but in the end were unable to produce a copy of my application showing what I had declared, or in their view had not declared. Be careful, very careful!

        Reply
      Default Gravatar
      JenniferJune 13, 2015

      you have not shown any options for seniors or Ore Existing Conditions. These are of interest to me, if only names of companies that are more accommodating.
      Some information would be welcome.
      I already figured about countries with reciprocal agreements or that you may have dual citizenship with, but what about on board a cruise ship, do many of them want you to pay for medical attention as you receive it?

      Reply
        Avatarfinder Customer Care
        RichardJune 15, 2015Staff

        Hi Jennifer,

        Thanks for your question.

        We have various pages that deal with these topics, including:
        Travel Insurance for pre-existing conditions.
        Seniors Travel Insurance

        Whether or not you can take out cover will depend on your pre-existing condition. InsureandGo and CoverMore claims to consider all conditions. They may also be able to help as they assess medical conditions prior to travel issuing 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.

        I hope this was helpful,
        Richard

        Reply
      Default Gravatar
      HelynJune 8, 2015

      I will be travelling with a carer from Sydney to Hawaii. Have 2 days there and then cruising back to Sydney.

      I am in a wheelchair, have a very stable medical condition that requires oxygen and ventilator only at night.

      My condition has been stable for over 38 years

      Reply
        Avatarfinder Customer Care
        RichardJune 9, 2015Staff

        Hi Helyn,

        Thanks for your comment.

        If you would like to compare policies from providers in our panel, You may get your quotes for travel insurance that considers all pre-existing conditions on our guide. 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

        Reply
      Default Gravatar
      GraemeJune 8, 2015

      What about having pre-existing medical conditions covered?

      As i like cruising and I go when there is a special on.Sometimes it may be
      a fly cruise and stay vacation.

      I am 65 been on about 6 already

      My pre-existing is a TIA about 7years ago no subsequent incidents ,diabetes (type 2),sleep apnoea

      Reply
        Avatarfinder Customer Care
        RichardJune 9, 2015Staff

        Hi Graeme,

        Thank you for your question.

        Whether or not you can take out cover will depend on your illness. You may check InsureandGo and CoverMore which claims to consider all conditions. They may also be able to help as they assess medical conditions prior to travel issuing 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.

        I hope this was helpful,
        Richard

        Reply
      Default Gravatar
      kimMay 29, 2015

      My husband and I are doing a cruise for one week in July this year.We have three ports of call.How much would insurance be for us as a couple,for this period.
      Thank You(kim)

      Reply
        Avatarfinder Customer Care
        RichardMay 29, 2015Staff

        Hi Kim,

        Thanks for your question.

        If you would like to compare policies from our list of insurers, please enter your travel details into the travel insurance quote form.

        You may also get a quote for cruise travel insurance by filling out your travel details on the form.

        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

        Reply
      Default Gravatar
      john-arthurMay 26, 2015

      I am 83 years old how can I get travel insurance for the US where my daughter lives.

      Reply
        Avatarfinder Customer Care
        RichardMay 26, 2015Staff

        Hi John-Arthur,

        Thanks for your question.

        It will depend on the insurer. You may get a quote for travel insurance for over 80s. Simply enter your travel details on the form. 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

        Reply
      Default Gravatar
      williamMay 26, 2015

      wife and I going on 17 day cruise next February,. wife said all insurance covered by cruise company. but I have what is classed as 3 chronic illness. I would feel safer if I took out my own personal insurance. is this possible if already covered by price of cruise. but cruise insurance is extremely poor

      Reply
        Avatarfinder Customer Care
        RichardMay 26, 2015Staff

        Hi William,

        Thank you for your question.

        Whether or not you can take out cover will depend more on your illness than your existing cover. However, InsureandGo and CoverMore claims to consider all conditions. and may also be able to help as they will assess your medical conditions prior to issuing travel insurance, so long as you’re not travelling against the advice of a medical practitioner.

        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

        Reply
        Default Gravatar
        williamMay 26, 2015

        my sincere thanks Richard. I suffer from depression, post traumatic stress and chronic arthritis. To my surprise my private health cover N.I.B. have given me the best cover 3 times have traveled over seas before, but costly. I have looked at 1 of the companies you have suggested and very interested in the there offer and price,. Sincerely, William.

        Reply
        Avatarfinder Customer Care
        RichardMay 26, 2015Staff

        Hi William,

        No worries at all. I hope your are able to find cover. If you need anymore help, please let me know.

        Best of luck,
        Richard

        Reply
      Default Gravatar
      AileenMay 16, 2015

      Where can I get domestic travel insurance to cover for pre-existing cardio vascular disease. Insurance required is mainly for cancellation of trip as medical expenses are covered by Medicare within Australia.

      Reply
        Avatarfinder Customer Care
        RichardMay 18, 2015Staff

        Hi Aileen,

        Thanks for your question. If you contact the insurer, you should be able to arrange cover for things like cancellation, lost luggage, etc and exclude cover for anything arising from your existing condition.

        I hope this was helpful,
        Richard

        Reply
      Default Gravatar
      frankMay 5, 2015

      Which is the best company to insure with for travel – a cruise to Hawaii and Tahiti- for older people? I’ve tried to find cover for this trip but none seem to want to insure travel to America.

      Reply
        Avatarfinder Customer Care
        RichardMay 6, 2015Staff

        Hi Frank,

        Thanks for your question.

        The best travel insurance is different for everyone. The pages below may help you make a more informed decision:
        Seniors travel insurance
        Cruise 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.

        I hope this was helpful,
        Richard

        Reply
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