Cheap travel insurance in Australia October 2026
Cheap travel insurance shouldn't mean cheap cover. You can get affordable medical, baggage and cancellation cover that actually pays out.
Key takeaways
- One of the easiest ways to save on your travel insurance is to compare your options.
- Tailor your cover to your specific trip to avoid paying for unneeded inclusions.
- Look for deals and discounts which can save you up to 15% on policies.
What affects the cost of travel insurance?
A few key things determine how much you'll pay for a policy:
- Where you're going: The US is one of the most expensive destinations to insure because of the cost of healthcare there. Countries with reciprocal healthcare agreements are generally cheaper to cover.
- How long you're away: The longer the trip, the more you'll pay. A week in Bali costs less to insure than a month in Europe.
- Your age: Premiums go up with age, particularly once you're over 60, as the likelihood of a medical claim increases.
- The level of cover you choose: A basic policy covering just medical and cancellation will cost less than a comprehensive one that also includes baggage, dental, rental car excess, and more.
- How many people are travelling: Insuring a family or group costs more than a solo policy, though some insurers offer combined policies that work out cheaper per person than buying individually.
Travel insurance deals & discounts
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5 ways to save money on travel insurance
1. Consider all your optiond before you buy through your airline or travel agent
Compare before you buy at the airline or agent checkout. Policies sold as add-ons can cost more than buying from the insurer, and comparing lets you see a range of prices side by side.
2. Only pay for the cover you actually need
Optional add-ons like ski cover, adventure sports, or high-value item cover all push your premium up. If you're going on a beach holiday and leaving your laptop at home, skip them. Read what's included as standard and only add what's relevant to your trip.
3. Raise your excess to lower your premium
Opting for a higher excess reduces what you pay upfront. It means smaller claims probably won't be worth making, but you're still protected if something serious and expensive happens. It is always worth getting a quote both ways to see how much you'd save.
4. Look for discount codes before you buy
Many insurers offer promo codes, online purchase discounts, or loyalty discounts for existing customers. A few minutes searching before you buy can knock 10%–15% off your premium.
5. Consider an annual policy if you travel more than twice a year
Buying a separate policy for every trip adds up. An annual multi-trip policy covers all your travel for a 12-month period and usually works out cheaper overall once you've taken two or more trips.
What does cheap travel insurance actually cover?
A cheap policy can still be a good policy, as long as it covers the essentials. Even the most basic cover should include:
- Overseas emergency medical and hospital costs. The single most important inclusion, and the one you should never skip.
- Cancellation cover. So you can recover non-refundable deposits if your trip is cut short or called off.
- Luggage and personal belongings. Usually with lower limits on cheaper policies, so check the caps.
Where cheap policies cut costs is usually in the extras and the limits: lower baggage caps, fewer inclusions for things like rental car excess or gadgets, and higher excesses. That's fine if you don't need those things, but always read the product disclosure statement (PDS) so a low price doesn't leave you underinsured where it counts.
Cheap vs comprehensive: which is worth it?
Cheaper isn't automatically better value, and neither is the most expensive policy. The right choice comes down to your trip:
- A cheap or basic policy can be plenty for a short domestic trip, or a low-risk overseas holiday where you mainly want medical and cancellation cover.
- A comprehensive policy is usually worth the extra for longer trips, expensive itineraries, cruises, adventure activities, or if you're travelling with valuable gear.
The trick is to match the policy to the trip, not just to chase the lowest number. Compare what each policy actually covers, then pick the cheapest one that ticks your boxes. If you want the strongest all-round cover, check out our guide to the best travel insurance.
"I recently booked a trip to Noosa where we were hiring a rental car. To hire it with an adequate level of insurance protection, we were going to have to pay $150 extra. I knew that a travel insurance policy could cover rental car excesses in the event of an accident, so I looked at how much a policy would cost. It came in at just $120 for both me and my husband. Given this included way more coverage than just the rental car and was ultimately cheaper too, we went with this option and were able to drive the rental car carefree. It was great knowing we’d also be covered for any flight cancellations (I’ve been burned before) and luggage woes too."
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Cheap basic travel insurance from $3.36/day October 2026
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