We’ve always purchased international travel insurance, but we never used to purchase domestic travel insurance in Australia.
We have socialized medicine in Australia so we always thought we’d be okay, and in regards to our luggage and equipment we just ran the risk.
That was until we did a quad bike tour near Newcastle and the guide explained to us what could happen if you had an accident. The only rescue would be a helicopter, which if you did not have health or travel insurance would cost around $25,000.
It is completely up to you. You can get policies that can fit in with your health and home insurance so you pay for only what you need.
6. Annual policy or single trip cover?
When searching for the best travel insurance policy you should have a basic idea of your travel habits and plans in advance in order to choose the right policy.
If you know you are going to travel several times within in a year, an annual travel insurance policy (multi-trip policy) covers all your trips and can be far more cost effective – they do have a maximum duration per trip though!
Other wise, stick with a single trip travel insurance policy!
NOTE:
Insurance premiums are based on the oldest traveler, and when a traveler turns 65 they hike up premiums.
Think carefully before opting for an annual policy for you or the family. If at least one of the travelers is 65 a separate policy for the older traveler may be the best option to avoid everyone else paying over the odds – but still do your calculations.
The deductible is the amount of money you pay for expenses before your insurance plan starts to pay. The higher your deductible, the lower your premium will be!
So if a claim is needed, you will be paying much more. If no claim is needed then you win as your upfront premium cost is lower.
If you take out a low deductible then your premium will be higher, meaning your upfront costs are more but you will end up paying less if you have to make a claim.
My comfort level is usually around $100 of deductible/excess. Depending on the travel circumstances though and premium price I will sometimes go for no deductible/excess.
8. How to Reduce Travel Insurance Premiums
A few tips on ways you may be able to reduce your premiums:
Check Your Home Insurance Policy
If traveling domestically, often home insurance policies may include coverage for personal belongings outside your home. This will help you save on travel insurance costs.
Buy Direct and Online
When buying the best travel insurance, it tends to be cheaper online and direct through an insurance provider.
Travel agents and airlines can get staggeringly large commissions from insurers for selling policies, sometimes up to 50%. Do your research just in case you discover an anomaly.
Traveling in a Group
If you are traveling in a group for business or leisure, you could save by purchasing one group policy instead of one policy for each individual.
Customer Loyalty
Check your other insurance providers, e.g. car and house as you could get a discount for a travel policy since you are already a customer.
Remember our Golden Rule, if you don’t ask the answer is always no. You can always highlight their competitor who charges less for the same coverage.
Family Travel Insurance
For families, some of the best travel insurance policies will cover kids for free, like World 2 Cover for Australians.
Credit Cards
Travel cover is a common add-on with select credit cards. Read the fine print and contact your bank to check for details. Obtain written confirmation that you are covered, what the insurance covers, and who to contact in an emergency.
Keep in mind:
Credit card travel insurance may not provide medical or evacuation coverage
You may have to pay for a higher level credit card in order to get insurance benefits
Restrictions on what is covered and the limits
You have to pay for the flights or other travel related expenses using that credit card in order to get covered!
Also, many basic policies cannot be activated without producing a copy of your credit card and do not cover any business or sporting activities, such as rafting.
And it’s not uncommon for the insurance to only last three months and once overseas, coverage cannot be extended. Personally, I would rely on credit card travel insurance.
9. Cheap Travel Insurance
A quick word about cheap travel insurance policies.
Getting the cheapest travel insurance policy is not always the best strategy. This could cost you a lot more in the long run if you do not get the right policy for yourself.
Travel insurance companies care about reducing their expenses (i.e their payout to you). The best travel insurance policies and companies provide good coverage and will work with you to give you the best experience possible.
But, there are a few dodgy ones also!
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