Whether you’re looking at booking an expansive overseas holiday or a quiet interstate getaway within Australia, it’s important to not find yourself caught with a hole in your pocket if not everything goes to plan. Travel insurance not only brings greater peace of mind to jetsetters but can also help you out when you’re in a bind.
At Savvy, we’re partnered with trusted and affordable insurers to help you compare a range of competitive offers for your next holiday. Get started today with a free, no-obligation quote.
What is travel insurance and why do you need it?
Travel insurance is designed to cover you for certain unexpected circumstances which may arise while you’re travelling, whether domestically or internationally. The incidents which may be covered, and the amount you're able to claim for different included incidents, vary between providers and different types of policies, such as between basic, mid-level or comprehensive cover options.
There's a range of reasons why it's important to purchase travel insurance before you take off on your next trip, including:
- Peace of mind: above all else, having a policy in place can bring you comfort that should a claimable event take place, you can recoup some of what you lost.
- Avoid hefty medical expenses: in certain countries around the world, being admitted to hospital can be extremely expensive. Travel insurance could help you avoid having to fork out tens of thousands of dollars if you're covered.
- Protect your belongings: many of the items you bring along with you are valuable, from your mobile phone to computers, cameras and even your luggage as a whole. Because of this, you may wish to take out a policy with suitable cover in this area (limits apply).
- Cover you for cancellations: should a covered incident take place, such as sustaining an injury which prevents you from travelling, your travel insurance can help you recoup non-refundable costs like flights, hotels and experiences (up to a set limit).
What does travel insurance cover?
There are many areas which are covered by travel insurance. What's included in your policy's coverage will ultimately depend on the insurer and the type of level of policy you buy. With a comprehensive travel insurance policy, you can expect the following to be included (subject to your insurer's terms and conditions):
You can be covered for certain overseas medical expenses, with some insurers offering protection for unlimited costs.
If disaster strikes and you have to change your plans, your policy may help you cover costs you can't get back.
Loss of personal items
We're partnered with insurers who can offer up to $15,000 for lost luggage (with sub-limits for phones, tablets and more).
If you're legally liable for property damage or bodily injury, some providers can cover you for up to $5 million.
Rental car excess
Damaging a rental car could incur a steep excess, but we're partnered with insurers who can offer up to $8,000 in cover.
Many travel insurance policies today offer cover for COVID-19, such as for medical and cancellation expenses.
Theft of cash
If your cash is stolen in a covered incident and reported to police, you could claim up to $500 with our partners.
Loss of income
If a covered accident on holiday leaves you unable to work, you could claim for lost income for up to six months.
How should I compare different travel insurance policies?
There are several key areas to look at when comparing different travel insurance quotes, which you can do right here with Savvy. The factors to compare include:
Inclusions and exclusions
The main feature of policies you should look towards is what is and isn’t included. It’s all well and good finding a cheap travel insurance policy, but if it doesn’t cover you where you need it to, you may as well not take out insurance at all. For example, some of the most common exclusions on these policies include:
- Medical expenses for treating undiagnosed pre-existing symptoms
- Unattended baggage
- Valuables stolen from a locked car (however, some insurers can offer cover if your valuables were stored in a boot or another covered compartment and there is evidence of forced entry)
- Claims arising from breaking local laws
- Cancellation fee cover due to a demonstration or terrorist incident at your destination
- Travelling against government advice
Policies on pre-existing conditions
The most relevant exclusion for many, however, is pre-existing conditions. If you require medical attention due to a condition or disease which was already known about before travelling, most comprehensive policies won’t cover you. It’s important to check different insurers thoroughly if you have such a condition, as it may be important to find one which covers you where required. Some of the pre-existing conditions which can be excluded are:
- Heart conditions
- Mental health conditions
- Terminal illnesses
Cost of premiums
It’s also important to try to secure the most affordable travel insurance deal. Travel insurance, in many ways, is about striking the balance between coverage and cost: while basic policies will be the cheapest, they may not always cover you for what you need. As such, you should always compare the costs of insurance providers and policies which also afford you suitable cover.
The excess on your travel insurance is the lump sum you pay when making a claim. You might look to a policy or provider which only requires you to pay a smaller excess, while there are some which may not charge an excess at all. However, in most cases, lower or no excesses will cost more in premiums, so it’s worth considering your priorities.
On top of the inclusions and exclusions, your insurer will likely also have a list of extras you can add to your policy. This may be a particular activity such as motorcycle riding or skiing. However, some insurers may include things like these in their comprehensive policy, rather than charging extra for them to be added, making it important to compare between options.
Why compare travel insurance with Savvy?
Types of travel insurance you can choose with us
International travel insurance can offer cover for a range of events, including medical expenses, lost luggage or items, cancellation fees and more when you're overseas and a long way from home.
If you're journeying within Australia, domestic policies are designed to offer many of the same protections as international travel insurance (with the exception of medical expenses).
The most standard and common type of travel insurance, this policy can cover you for one trip starting and ending in Australia (and is available for both international and domestic travel).
As the name suggests, this type of travel insurance covers multiple trips over a 12-month period. Depending on your insurer, you may be able to take an unlimited number of trips up to 90 days each.
You don't have to have a return ticket booked to take out cover while you're overseas. One-way travel insurance enables you to access cover without a set end date, such as if you're moving temporarily.
You may need to take out specialist coverage if you're setting sail on a cruise. Fortunately, cruise insurance can cover emergency evacuation, cabin confinement and more.
Just because you're older doesn't mean travel insurance isn't still important. If you qualify for cover, seniors' travel insurance can offer greater peace of mind for included events while you're travelling.
Adding winter sports or ski cover to your policy can add protection against damage to your equipment, piste closure due to bad weather and activities such as back-country skiing, heliskiing and more.
Looking to enjoy some adventure sports on holiday? An adventure sports pack can grant you cover for a range of activities, such as hiking, scuba diving and motorcycle or scooter riding.
Jetsetting with the whole clan in tow? Some insurers offer family travel insurance, which enables you to include yourself, your partner and your dependent children under one policy to help you save.
If you're travelling interstate or overseas with your partner (or simply another friend or family member), you may be able to access a discount by taking out a joint or duo travel insurance policy.
Frequently asked questions about travel insurance
Helpful travel insurance guides
Explore your travel insurance options for your next destination
We do not compare all travel insurance brands currently operating in the market. Any advice presented above or on other pages is general in nature and does not consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.
Savvy earns a commission from our partners each time a customer buys a travel insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via their websites.
Before purchasing your policy, we recommend you refer to the provider’s PDS for any further information on the terms, inclusions and exclusions.