Finder research put the average cost of travel insurance at around $235 in September 2023. Your own cost will differ based on your personal circumstances
There are a lot of factors that can affect your travel insurance cost; destination, age and planned activities.
Travel insurance cost has changed over time but there are still a few things that you can do to get more value out of your chosen policy.
The average cost of travel insurance for Australians was $235.37 in September 2023. 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.
Finder has helped thousands of Aussies get peace of mind on their next trip.
1. The average cost of travel insurance for Australians was $235.37 in September 2023. 2. The cost of travel insurance has increased by about 87% between August and before the height of the pandemic. That means that the cost of travel insurance has almost doubled in the last few years. 3. Travel insurance premiums were above $230 consistently from January to September 2023. 4. The cheapest average travel insurance policy was $126.50 in September 2017. 5. The most expensive average travel insurance was $348.25 in July 2016. 6. The highest travel insurance price average in 2023 was marked in July and priced at $273.37.
How has the average price of travel insurance changed over time?
The average price of travel insurance has fluctuated drastically over time. According to our unique research, we can see the cost of travel insurance shift from June 2016. It starts high, but drops significantly and steadies throughout 2016 to 2019.
We then start to see the effects of the pandemic come through with travel insurance sales ceasing across the board. International borders had closed and leisure travel for most Australians was off the cards for more than a year.
When international borders opened and we started feeling more comfortable to travel, you can see that the average travel insurance premiums from January to September 2023 has been above $230 consistently.
The cost of travel insurance has increased by 87% between now and before the height of the pandemic.
That means that the cost of travel insurance has almost doubled in the last few years.
Finder survey: Are Australians loyal to a travel insurance brand?
Response
No
78.96%
Yes
21.04%
Source: Finder survey by Pure Profile of 1112 Australians, December 2023
Finder's average travel insurance cost
Finder's average travel insurance cost
Month
Average policy size
Jun-16
$220.01
Jul-16
$348.25
Aug-16
$214.92
Sep-16
$160.85
Oct-16
$189.54
Nov-16
$173.20
Dec-16
$151.97
Jan-17
$154.49
Feb-17
$139.74
Mar-17
$142.71
Apr-17
$148.56
May-17
$154.49
Jun-17
$148.25
Jul-17
$139.13
Aug-17
$128.98
Sep-17
$126.50
Oct-17
$129.06
Nov-17
$149.92
Dec-17
$149.11
Jan-18
$156.80
Feb-18
$153.46
Mar-18
$158.83
Apr-18
$156.46
May-18
$166.73
Jun-18
$177.83
Jul-18
$170.30
Aug-18
$156.23
Sept-18
$151.64
Oct-18
$151.67
Nov-18
$158.41
Dec-18
$155.04
Jan-19
$216.26
Feb-19
$172.58
Mar-19
$173.91
Apr-19
$264.17
May-19
$171.92
Jun-19
$166.99
Jul-19
$161.05
Aug-19
$152.92
Sep-19
$153.68
Oct-19
$147.95
Nov-19
$159.49
Dec-19
$153.66
Jan-20
$292.98
Feb-20
$164.96
Mar-20
$0.00
Apr-20
$0.00
May-20
$0.00
Jun-20
$0.00
Jul-20
$0.00
Aug-20
$0.00
Sep-20
$0.00
Oct-20
$0.00
Nov-20
$0.00
Dec-20
$0.00
Jan-21
$0.00
Feb-21
$0.00
Mar-21
$0.00
Apr-21
$0.00
May-21
$0.00
Jun-21
$0.00
Jul-21
$0.00
Aug-21
$0.00
Sep-21
$0.00
Oct-21
$0.00
Nov-21
$0.00
Dec-21
$0.00
Jan-22
$0.00
Feb-22
$0.00
Mar-22
$0.00
Apr-22
$0.00
May-22
$0.00
Jun-22
$0.00
Jul-22
$0.00
Aug-22
$0.00
Sep-22
$0.00
Oct-22
$0.00
Nov-22
$0.00
Dec-22
$248.35
Jan-23
$253.65
Feb-23
$263.26
Mar-23
$262.21
Apr-23
$269.61
May-23
$267.54
Jun-23
$273.37
Jul-23
$250.67
Aug-23
$235.37
Sep-23
Why is it more expensive now?
Since travel has resumed, policies are noticeably more expensive and the reason is simply because there's more financial risk when travelling now. This includes things like:
Increased number of airline cancellations/delays which has resulted in travellers missing events and losing prepaid accommodation
Increased incidents of airlines losing/delaying luggage, forcing travellers to re-buy essentials and claim the expense on travel insurance
Travellers getting diagnosed with COVID-19 before or during their travels which forces them to isolate and miss out on prepaid expenses
COVID continues to be one of the main reasons our customers claim, and it looks like it's going to affect travellers for some time to come. Taking a look at the data for our International Comprehensive policy, it's clear claims spiked as travellers really started to take off around the world again. And, while there's been a dramatic slump since September 22, COVID still makes up 11% of all claims paid to customers across the 2 markets. On average we are paying out claims for cancellation and travel disruption due to COVID to the value of $1,500, which is a sizeable cost.
We have historical data from 3 popular travel insurers in Australia, for a 2-week trip to Bali for a 30-year-old with a $200 excess back in April 2019. Using the same trip details, we've compared the price of travel insurance from then to April 2024.
This is April 2019
Cost
Policy type
Finder rating
Budget Direct Travel Insurance
$84.10
Comprehensive
9.3
Fast Cover
$58.90
Comprehensive
9.1
Zoom Travel Insurance
$58.65
Comprehensive
9
This is April 2024
Cost
Policy type
Finder rating
Budget Direct Travel Insurance
$156.28
Comprehensive
n/a
Fast Cover
$125.99
Comprehensive
8.6
Zoom Travel Insurance
$122.15
Comprehensive
6.8
*Please note that the methodology for the Finder rating has changed between then and now. The quotes shown on the 2024 table were last updated in April 2024.
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:
Destination. High-risk destinations will often attract a higher premium, especially countries with expensive healthcare like the US.
Age. Insurers have identified high-risk age groups. Generally, the older you are, the more likely you'll need to make a claim.
Optional add-ons. It'll cost more to add on extra cover for things like skiing, cruises, rental vehicle excess and cover for valuables.
Pre-existing medical conditions. If you have a medical condition that increases the likelihood of needing healthcare overseas, you'll be charged extra.
Trip length. The longer your trip, the more cover you'll need. This means that your policy will be more expensive.
Level of cover. From basic to comprehensive. The more basic your policy, the cheaper it will be.
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.
Our expert says
"Travel insurance should be included on everyone's holiday list – no matter where you're going. 1 in 3 Australians, equivalent to 3.5 million people, suffered a travel mishap while abroad in the past 12 months."
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.
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.
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.
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.
Frequently asked questions
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.
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.
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.
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.
Jessica Prasida brings a decade of experience in the travel industry, including over four years as a travel agent and branch manager at STA Travel. She holds a Bachelor of Business and a Master of Marketing from the University of Technology, Sydney, as well as a Tier 1 General Insurance qualification that complies with ASIC guidelines. An avid traveller herself, Jessica combines her professional expertise with a passion for ensuring safe and enjoyable journeys for all travellers. Jessica was a Travel Insurance Publisher at Finder from 2019 to 2024.
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travelling to france and scotland for 4 weeks plane, rail and hire car. have fully comprehensive travel insurance with racv. do i need to take out full insurance with car hire
Finder
SarahJune 11, 2024Finder
Hi Steve, Your best bet is to look at the inclusions of your policy with RACV. It will stipulate your specific cover around car insurance. Many insurance policies provide coverage up to a certain excess amount, eg. $3000, and you can then elect to take out insurance with the car hire company to reduce this excess to a lower amount if you wish.
Best of luck!
BeverleyDecember 6, 2016
Iwantalnsurancefora43and47yearoldstotasmania
Finder
RichardDecember 7, 2016Finder
Hi Beverley,
Thanks for getting in touch. To receive quote from the brands in our panel, please head over to our domestic travel insurance page.
Our verdict: AllClear Travel Insurance covers globetrotters of any age and more than 1,300 pre-existing medical conditions, including heart complications and diabetes.
If you need a policy that covers the risk of medical expenses when you travel outside of Australia, then it is pivotal that you look beyond your Medicare cover. Compare the medical coverage of travel insurance policies online.
Planning a holiday is a lot of work. Webjet Travel Insurance makes the job easy with its range of policies, including comprehensive.
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travelling to france and scotland for 4 weeks plane, rail and hire car. have fully comprehensive travel insurance with racv. do i need to take out full insurance with car hire
Hi Steve, Your best bet is to look at the inclusions of your policy with RACV. It will stipulate your specific cover around car insurance. Many insurance policies provide coverage up to a certain excess amount, eg. $3000, and you can then elect to take out insurance with the car hire company to reduce this excess to a lower amount if you wish.
Best of luck!
Iwantalnsurancefora43and47yearoldstotasmania
Hi Beverley,
Thanks for getting in touch. To receive quote from the brands in our panel, please head over to our domestic travel insurance page.
All the best,
Richard