The Cost of Travel Insurance Sees Double-Digit Growth in 2023
A recent study conducted by Canstar has revealed that the cost of travel insurance has experienced a significant increase in 2023. The average policy price has risen by 11 percent, going from $337 to $375. Families and seniors have been hit the hardest, with policy prices increasing by nearly $50 compared to the previous year.
According to travel insurance expert Steve Mickenbecker from Canstar, this price hike marks the second consecutive increase in policy costs. He attributes this rise to the higher risks associated with traveling in a post-Covid world. While there are fewer insurers available compared to pre-pandemic times, the market remains competitive. The increased premiums serve as a warning to travelers that the risks are real and that they should not embark on their journeys without adequate medical insurance at the very least.
How to Save on Travel Insurance Policies
Canstar advises travelers to shop around before purchasing travel insurance. They recommend referring to their 5-Star Rated international travel policies, which are on average 32 percent cheaper than other policies available in the market. Mickenbecker emphasizes the importance of finding the best deals for insurance, just as travelers would for flights and hotels. Those who fail to compare policies may end up paying significantly more for their coverage.
Savings can be achieved by opting for policies with lower dollar limits on claims for loss of baggage or cancellation. While losses in these categories can be substantial, they are unlikely to cause long-term financial harm. However, travelers should not compromise on insurance coverage for overseas medical care, as the costs associated with such care can be astronomical and have a severe impact on family finances.
Understanding Policy Limitations and Exclusions
Canstar recommends that consumers carefully read the fine print of their chosen travel insurance policy before making a purchase. Understanding the events that can trigger a claim, the types of financial damage covered by the insurer, and the dollar limits on different types of claims is crucial. Equally important are the exclusions that apply and the policyholder’s obligations under the policy. Being aware of these details upfront can prevent devastating surprises when a claim is declined.
Considerations for High-Risk Activities and Covid-19 Coverage
Engaging in high-risk activities such as off-piste skiing can invalidate insurance claims. Additionally, undeclared pre-existing medical conditions and intoxication can also lead to claim denials. Insurers have different approaches to handling intoxication-related claims, with some setting blood alcohol limits and others relying on evidence such as bar bills, witnesses, and expert opinions.
While nearly a quarter of insurance providers do not offer cover for Covid-19, the majority still provide coverage for overseas medical expenses and cancellations related to the virus. Policies with comprehensive Covid cover tend to have higher premiums, reflecting the increased risk. However, the peace of mind that comes with knowing Covid treatment will be available if needed makes the extra cost worthwhile for many travelers.
Best Value Travel Insurance Policies
Canstar’s research involved analyzing over 19,700 travel insurance quotes from 54 international and domestic insurance providers to identify the best value policies for Australian travelers. The winners of the Outstanding Value Award for 2023 are:
- International: InsureandGo, Tick Travel Insurance, and World2Cover
- Domestic: Qantas and Southern Cross Travel Insurance
- Seniors: InsureandGo and Southern Cross Travel Insurance
- Cruise: Go Insurance and Qantas
In recent years, there has been a significant increase in the number of Australians purchasing cruise travel insurance policies. The convenience and popularity of cruises have led to a surge in demand for coverage. It is essential for travelers to carefully consider their insurance needs before embarking on a cruise or any other type of trip.
Quote from the Website Author: “If you can’t afford travel insurance, you can’t afford to travel.”
Conclusion from the Website Author: “Travel insurance is a crucial aspect of any trip, providing protection against unforeseen circumstances and financial losses. It is essential for travelers to shop around, compare policies, and understand the terms and conditions before making a purchase. By doing so, they can find the best value coverage that meets their specific needs and ensures peace of mind throughout their journey.”
George Barham, an accomplished journalist and avid gambling enthusiast, serves as the esteemed Editor-in-Chief at fly-to-australia.com, Australia’s leading source for comprehensive gambling news and insights. With an unwavering passion for both the written word and the ever-evolving world of betting and gaming, George brings a wealth of knowledge and expertise to the helm of our editorial team.
