How to Determine the Cost of Travel Insurance

Have you ever wondered how much travel insurance costs? Finding the right coverage at an affordable price can be a challenge. In this article, we will explore the factors that affect the cost of travel insurance and help you make an informed decision. So, let’s dive right in!

Factors Affecting the Cost of Travel Insurance

Woman with a travel insurance hiking

Your Age

The cost of your travel insurance will be influenced by your age. Generally, as you get older, the cost of insurance increases. Senior travelers, for example, might have to pay extra for coverage.

Your Destination

Where you plan to go also impacts the cost of your travel insurance. Some countries, like New Zealand and several European countries, have reciprocal healthcare agreements with Australia. In these destinations, you can receive subsidized medical care. However, in countries like the USA, medical treatment is expensive, and insurance providers charge more due to higher medical claims.

Duration of Travel

The length of your trip is another factor that affects the cost of travel insurance. Longer trips are more likely to result in claims, hence the higher premium. If you’re unsure about your return date, you can still purchase one-way travel insurance, although finding an affordable policy may be more challenging.

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Level of Cover Needed

There are three levels of cover available for overseas travel, each with a different cost. The cheapest level is the medical-only/basic cover, which includes overseas medical and hospital bills, as well as personal liability. The standard/essentials cover offers additional benefits like trip delay and cancellation cover, luggage cover, and higher claim limits. The comprehensive cover includes everything in the standard cover with even higher claim limits. This type of cover is recommended for longer journeys or if you’re carrying valuable items.

Optional Extras

If you require coverage for specific activities, insurers offer optional extras for an additional premium. Common extras include cruise cover, adventure cover for activities like hiking and white water rafting, winter sports cover for skiing and snowboarding, rental vehicle excess cover, and motorcycle, scooter, and moped cover. Be sure to read the policy details carefully to understand what is covered.

Pre-existing Medical Conditions

If you have pre-existing medical conditions, they may affect the cost of your travel insurance. Some conditions may be automatically included in your cover, while others may be excluded. You can declare your conditions to your insurer, who will determine if they can offer coverage and if any additional premium is required.

Your Policy Excess

The policy excess is the amount you pay to your insurer when making a claim. Choosing a higher excess amount will lower your travel insurance premium, while a lower excess amount will result in a higher premium. It’s important to select an excess amount that fits your budget.

Type of Insurance

There are various types of travel insurance available, such as single trip policies, annual multi-trip policies, group cover, family cover, and couples cover. The type you choose will depend on your travel itinerary and the number of people you are traveling with.

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Choice of Insurer

The insurance company you choose can also impact the cost of your cover. Prices, inclusions, exclusions, limits, and sub-limits vary between insurers and policies. Comparing quotes from different insurers can help you find a policy that offers great value for your needs.


Q: How do I find affordable travel insurance?
A: To find affordable travel insurance, consider factors such as your destination, trip duration, level of cover needed, and optional extras. It’s also essential to compare quotes from different insurers to find the best deal.

Q: Should I declare my pre-existing medical conditions?
A: Yes, it’s crucial to declare any pre-existing medical conditions to your insurer. This allows them to assess if they can offer coverage and if any additional premium is required.

Q: Can I adjust my excess amount to lower the premium?
A: Yes, you can choose a higher excess amount to lower your travel insurance premium. However, it’s important to select an amount that you can comfortably afford if you need to make a claim.


When it comes to travel insurance, several factors influence the cost. Your age, destination, trip duration, level of cover needed, optional extras, pre-existing medical conditions, policy excess, type of insurance, and choice of insurer all play a role. By considering these factors and comparing quotes, you can find the right coverage at a price that suits your budget. Stay protected and enjoy your travels with peace of mind!

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