It’s important to compare policies for cost and cover. The average price of travel insurance fell slightly in the year to September 2024, but well over half of the policies actually increased in price. So it still pays to shop around.
“86% of travellers will find ways to keep costs down but this may increase their exposure to risk if those options are less safe.”
Buy early
The further out from your departure date that you buy travel insurance, the more you’re likely to pay for it, but you’ll be covered from the moment you buy your policy. For example, if you buy insurance 2 months before you fly, you effectively have cheap cover for any events that affect your travel plans in those 2 months.
Left it until the last minute, or even later? Only a few insurers let you buy insurance once you’re already overseas (look for the ‘Have you already left Australia?’ checkbox when viewing policy options).
Buy online
While not all policies offer online discounts, plenty do. Make sure you understand the policy and what it covers. Sometimes (but not always) a reduced price may mean reduced cover.
Tip: Check asic.gov.au/afslicensing to find out whether the agent has an Australian financial services (AFS) licence or is an authorised representative of a licence holder. Take the usual precautions when giving your credit card and other details over the internet.
Member discounts
Does your health, car or home insurance provider also sell travel insurance? Some companies give 10–15% discounts to existing members.
Shop around
Trying to negotiate with a website will probably get you nowhere, but if you’re buying over the phone or through a travel agent, give it a go. Travel agents pocket a commission when they sell you insurance, so if you find a better deal elsewhere, ask them if they can beat it.
“Almost two-thirds (62%) of overseas travellers who buy insurance do so on or before the day of booking travel”
Use your credit card
Some credit cards come with ‘free’ travel insurance when you use them to buy a ticket, pay for other travel expenses or otherwise activate it (we say ‘free’ because you’ll pay a premium in fees for the card itself).
This type of insurance can sometimes be a money-saver, and the level of cover can be just as good or even better than standard insurance, but make sure it gives you the cover you need.
Compromise on cover
While good medical cover is always essential, you could save money on your premium by choosing a policy with lower or variable cover for cancellation, delays and lost baggage, especially if you aren’t spending big on your holiday or taking expensive items with you.