How much is travel insurance?

From flights to accomodation and activities, there are may costs associated with travel. One expense that often gets left to the last minute is travel insurance. However, travel insurance is best purchased as soon as you book your flight, as it can cover you against unforeseen flight cancellations or delays.

The average cost of travel insurance for Australians was $105 in September 2026. But keep in mind, this is going to be different for everyone since the price is based on so many factors like your destination, length of your trip, your age and if you have any pre-existing medical conditions.

Let's go through some of these factors below.

What impacts the cost of travel insurance premiums?

Travel insurers determine the cost of your premium based on your individual level of risk. Are you elderly? Or maybe someone who craves adventure? Perhaps even both. These factors play out in the cost of your travel insurance policy, but remember, there are ways to save and get better value – you just have to compare travel insurance.

Here are some things that can impact your travel insurance cost:

How has the cost of travel insurance changed over the years?

Travel insurance prices have been on a rollercoaster over the past decade. Premiums sat fairly steady through the late 2010s, disappeared almost entirely when borders closed in 2020, then came back sharply once Australians started travelling again. By 2023 the average policy was costing noticeably more than it had before the pandemic, as insurers priced in higher medical costs, more flight cancellations and a wave of disruption claims.

The good news is that the surge appears to have peaked. To see how prices have shifted for a real trip rather than an average, we compared quotes from the same insurers for the same holiday: a two-week trip to Bali for a 30-year-old with a $200 excess.

Travel insurance quotes from 2019

Travel insurance quotes from 2024

Travel insurance quotes from 2026

*Last updated: September 2026

Do you need travel insurance?

Well, of course we're going to say yes, but we're not the only ones. Smartraveller's signature line is "If you can't afford travel insurance, you can't afford to travel".

That being said, only a few countries have mandated travel insurance as an entry requirement to enter the country. But if you're travelling with a private tour company, travel insurance is usually compulsory to join the tour.

Cheap or comprehensive: does it really make a difference?

Basic and medical-only policies cost less because they cover less. That's a reasonable trade for some trips and a bad one for others.

A basic policy makes sense for a cheap, flexible trip where losing the booking wouldn't hurt. For an expensive trip booked months ahead, the extra premium usually buys more than it costs. Our guide to cheap travel insurance goes through where it's safe to save.

Can I use my credit card's travel insurance instead?

Complimentary travel insurance comes with a lot of premium credit cards, and if it covers your trip properly, it's the cheapest option available. The catch is that it often doesn't, and people tend to find that out at the worst possible moment.

Things to check before you rely on it:

1. How to activate it. Most cards require you to spend a minimum amount on prepaid travel costs, usually flights or accommodation, using that card. Some also require you to register the trip before you leave. If you booked with points or a different card, you may not be covered at all.
2. Who's covered. Cover usually extends to your spouse and dependent children travelling with you, but not always to other family members or friends on the same trip.
3. Age limits. Complimentary cover commonly stops applying above a certain age, or requires a medical assessment and an extra payment to continue.
4. Pre-existing conditions. This is the biggest gap. Most complimentary policies either exclude pre-existing conditions outright or require you to apply and pay for an assessment.
5. Trip length. Cover is typically capped at a set number of days per trip, so longer holidays can run past the end of your cover.
6. What the limits actually are. Complimentary cover often has lower caps on luggage, cancellation and rental vehicle excess than a standalone policy.

How can I keep the cost of travel insurance down?

If you're trying to get more bang for your buck, there are a few things that you can do to get more value out of your travel insurance.

1. Compare travel insurance. We've got a nifty tool that can help you compare different travel insurers side-by-side so you can understand what benefits you're getting and at what cost.
2. Look for discount codes. Travel insurers frequently offer discounts between 5% and 15% off their policies. This can really make a difference if you're someone who's high risk or if you're travelling for a long time.
3. Play with your excess amounts. Have a think about how likely you are to make a claim on your policy. If it's very unlikely, opt for a higher excess – usually between $200 and $300. This will often give you a cheaper policy.
4. Get last-minute travel insurance. This is riskier. Some insurers will automatically cover you for pre-departure cancellation, which means they could be covering you for longer than you need and charging you for it. But remember, this option leaves you at risk of not being covered if you do need that pre-departure cancellation.

Mistakes that cost travellers money

• Buying at the airport. Cancellation cover starts from the day you buy your policy, not the day you fly. Buying when you book means you're covered for the months leading up to the trip, usually for the same price.
• Not declaring a medical condition. Declaring costs more upfront. Not declaring can mean a declined claim and a medical bill you pay in full.
• Assuming your activities are covered. Skiing, riding a moped, diving and adventure sports are commonly excluded or need an add-on. Moped accidents in Bali are one of the most common claims Australians make, and cover usually depends on holding a valid licence for that vehicle.
• Ignoring sub-limits. Your policy's total luggage limit isn't what you'd get for one item. Check the per-item cap before you travel with expensive gear.
• Only insuring part of the trip. If you're stopping over somewhere on the way, make sure that country is on your policy.
• Not reading the excess. A higher excess lowers your premium, which is fine until you claim for something that costs barely more than the excess itself.

Frequently asked questions

• How much should I budget for travel insurance?

  As a rough guide, budget somewhere between 4% and 10% of your total trip cost. A $3,000 holiday would put you in the range of $120 to $300. Where you land depends on your age, where you're going, how long you're away and whether you're declaring a medical condition.

• When is the cheapest time to buy travel insurance?

  The price doesn't drop the longer you wait, so there's no benefit in holding off. Buying as soon as you book actually gives you more for your money, because cancellation cover starts from the day you buy rather than the day you fly. Leave it until the week before you go and you've paid the same premium for months less cover.

• Is travel insurance worth it for a short trip?

  It depends on what the trip cost you rather than how long it is. A weekend away with a cheap flight and a refundable hotel may not be worth insuring. A four-day trip with prepaid tours and non-refundable accommodation is a different story, and medical costs overseas don't scale with trip length: a hospital admission on day two of a short trip costs the same as one on day twenty of a long one.

• What is the cheapest and best travel insurance?

  There is no single cheapest or best policy, because the price depends on where you are going, how long for, your age and any pre-existing conditions you declare. Compare quotes for your own trip, then check the cover limits rather than the price alone. Our guides to cheap travel insurance and the best travel insurance cover both.

• What are 3 things you should look out for when buying travel insurance?

  1. Known events. If you want absolute peace of mind, get a travel insurance policy as soon as possible. If something happens to disrupt or cancel your trip, you will need an active travel insurance policy if you want to recuperate your losses. Known events could be things like natural disasters, a death in the family or a pandemic.
  2. Optional extras. Don't assume that after you've taken out a policy that you're covered for everything and anything. If you know you'll be partaking in certain activities like skiing or moped riding, make sure you've taken that extra cover or that it's included in your policy.
  3. COVID-19 cover. Some basic policies exclude cover for COVID-19. If this is important to you, check your product disclosure statement (PDS) to make sure it's included.

To make sure you get accurate and helpful information, this guide has been edited by Jason Loewenthal as part of our fact-checking process.

Written by

Ceyda Erem

Senior writer

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Ceyda Erem is Finder’s senior writer for insurance and has almost 10 years of experience writing about personal finance. Formerly a copywriter for several business and finance clients, Ceyda has written hundreds of articles, guides, blogs and more to ensure Australians stay in the loop about how to best manage their money. She has a Bachelor of Arts, Majoring in Writing from Macquarie University. See full bio

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