For most of us, insurance is usually something of a grudge purchase and travel insurance is no exception. Amid the excitement of booking your flights and accommodation, the idea of forking out for something you may not use can leave many of us reluctant to part with our dollars.
But, travel insurance is a must. Without it, you could be left with hundreds of thousands of dollars of debt and some countries won't even let you enter unless you have travel insurance.
To help you get the best possible deal we asked CHOICE travel insurance expert Jodi Bird to share his top tips for how to save when choosing travel insurance.
1. Compare the options
Our travel insurance reviews of more than 30 different insurers compare benefits, average policy costs, medical expense limits and a range of other criteria. We've waded through the thousands of pages of product disclosure statements to recommend policies that offer the best value for Australians embarking on an overseas adventure.
While it can be tempting to simply choose the cheapest option when buying any kind of insurance, that strategy may result in spending money on a policy that doesn't give you what you need. The policies we recommend take into account all the features that make for good value, not just price.
"The cost of similar levels of cover can vary widely. That's why we recommend policies that perform well on price and cover," says Jodi.
2. Compromise when you can
While it's vital that you have good coverage for medical expenses, there are some typical policy inclusions that you may be able to do without, meaning you'll pay a lower premium.
If you're not spending a lot on your holiday or taking expensive items with you then it could make sense to reduce the cover for cancellation, delays and baggage. Make sure you explore these options when getting quotes for your travel insurance.
"If you're embarking on a cheap backpacking holiday in Vietnam as opposed to an expensive cruise, for example, you probably don't need all the bells and whistles for cancellation and baggage cover," explains Jodi.
In other words, don't pay for coverage you can't use.
3. Check if you have insurance through your credit card (and check your coverage)
Some credit cards offer complimentary travel insurance, though describing this insurance as "free" is debatable, considering the fees you pay to use the card.
Our experts have found that some of these cards can offer good coverage, though you need to be mindful of the conditions required to use them. For example, just having the card may not be enough and generally, you'll only be eligible for the insurance if you buy your tickets with it. You may also find your coverage won't apply to pre-existing conditions.
Make sure you understand what's included and how to activate the policy, as there may be additional steps beyond simply using your card for holiday expenses
If you're considering using travel insurance attached to a credit card, make sure you understand what's included and how to activate the policy, as there may be additional steps beyond simply using your card for holiday expenses.
"Some credit cards may require a minimum trip spend of, say, $500 to activate the insurance. So a bargain flight to Bali that costs less than the minimum spend won't activate your insurance. You'll need to check your card's rules to make sure you're covered," says Jodi.
4. Look for member discounts from your existing insurance providers
If you have home, car or health insurance, your insurer may offer travel insurance at a discount to existing customers. In some instances this can be as much as 10–15%, so it's worthwhile investigating this option when you're shopping around for travel insurance.
"Many travel insurance policies are packaged up by the same provider and sold with another company's name on them, like Medibank and Qantas. The advantage for consumers is the discounts you can get if you're already a Medibank member or a Qantas frequent flyer," Jodi explains.
Just ensure you check the details of the policy offered to ensure the coverage suits your needs, even if it is substantially discounted.
Stock images: Getty, unless otherwise stated.
