How to choose travel insurance

Travel insurance policies include varying degrees of cover for:

• medical and dental
• baggage and belongings
• cancellation
• personal liability
• legal costs
• delay
• resumption of journey
• rental car excess cover

Choosing a policy

Step 1: You’ll need different levels and types of cover depending on where you’re going. For example, if travelling to the US where healthcare is expensive, we recommend you take a policy that has ‘unlimited’ medical cover.

Step 2: How do you travel - backpacker or first class?

• Luggage and personal belongings: will you be taking expensive items or will you be travelling light?
• Activities: will you be skydiving or bungy-jumping, hiring a car, or backpacking and picking up work as you go?
• Family, needs and health: do you have special medical needs, are you travelling with children or do you have relatives that may become ill while you are away?
• Advance bookings: are you booking fares, accommodation and tours in advance? If so, consider cover for cancellation, additional expenses and delays.

Step 3: How to save $$$

• Buy online if you can find a discounted policy that suits your needs.
• High commissions leave plenty of room to negotiate with agents.
• If you travel overseas several times each year, annual multi-trip policies may work out cheaper overall.
• Some companies (for example health insurers) give discounts to members.

Step 4: Start shopping for a policy. Contact at least 3 insurers and read their policies to decide which one suits you best.

Special requirements: travellers with pre-existing medical conditions, older travellers, single parents, pregnant women, adventure travellers and travellers planning on working during your holiday need to be even more careful when choosing a policy.

Want to know more?

See the full report from Choice. Choice is an independent, non-profit Australian organisation.