How much is travel insurance?

The average cost of travel insurance for Australians in September 2023 is $235.37. 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.

• Looking for quick stats?

  1. The average cost of travel insurance for Australians in September 2023 is $235.37.
  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 from January to September 2023 have been above $230 consistently.
  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.
  7. From our 2023 Finder Awards, we found the average cost of a seniors domestic policy was $510 and an international policy was steeper at $786.

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.

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  1. The cost of travel insurance has increased by 87% between now and before the height of the pandemic.
  2. That means that the cost of travel insurance has almost doubled in the last few years.

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.

Jo McCauley
CEO – Southern Cross Travel Insurance

Then versus now

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 2019

This is 2024

*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:

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  1. Destination. High-risk destinations will often attract a higher premium, especially countries with expensive healthcare like the US.
  2. Age. Insurers have identified high-risk age groups. Generally, the older you are, the more likely you'll need to make a claim.
  3. Optional add-ons. It'll cost more to add on extra cover for things like skiing, cruises, rental vehicle excess and cover for valuables.
  4. Pre-existing medical conditions. If you have a medical condition that increases the likelihood of needing healthcare overseas, you'll be charged extra.
  5. Trip length. The longer your trip, the more cover you'll need. This means that your policy will be more expensive.
  6. Level of cover. From basic to comprehensive. The more basic your policy, the cheaper it will be.

Finder survey: Are Australians loyal to a travel insurance brand?

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.

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.

Gary Ross Hunter
Finder's insurance and innovations editor

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.

What is the cost of travel insurance for seniors?

As part of the 2023 Finder Awards, we collected data on almost 200 quotes for seniors. We had a look at a single 79-year-old travelling for 2 weeks in Australia (domestic) and a few other destinations like New Zealand, Bali, Europe and the US (international).

We found the average cost of a seniors domestic policy was $510 and an international policy was steeper at $786.

Frequently asked questions

• What is the cheapest and best travel insurance?

  It always depends on what you consider to be cheap and the best. But to help, Fast Cover was the Value winner at the 2023 Finder Awards.

• 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.

Why you can trust Finder's travel insurance experts

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You save time. We spend 100s of hours researching travel insurance so you can sort the gold from the junk faster.

You can trust us. We say it like it is. We aren't owned by an insurer and our opinions are our own.

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

Jessica Prasida

Publisher

Jessica Prasida is a travel insurance expert for Finder. She lives and breathes travel, having worked as a travel agent and branch manager at STA Travel for over 4 years, then writing about travel insurance with Finder for another 5 years. Jess has a Bachelor of Business from the University of Technology, Sydney and a Tier 1 General Insurance qualification. See full bio