Travel insurance is non-negotiable when it comes to planning your overseas adventure – as essential as your passport, your sunscreen and a cute holiday 'fit. And you need to ensure you're choosing a policy that actually gives you the cover you need.
Research by Smartraveller found that one in four Australian travellers experienced an insurable event on their last overseas trip – this includes anything from lost luggage, to delayed or missed flights, or more serious medical emergencies.
And although reading small print isn't as much fun as researching luxury hotels, the devil is in the details – insurance policies are not all created equal.
In fact, we've compared international travel insurance policies from over 30 insurers (almost 100 policies in total) and found that many have tricky exclusions, miserly limits, or just don't offer good value for money.
What makes a good travel insurance policy?
CHOICE travel insurance expert Jodi Bird says the best policies cover your needs for a good price. They should cover where you're travelling to and the activities you'll be doing, whether that's cruising, riding a moped or skiing.
And as we're all trying to save a few bucks where we can these days, they should also be a good price for your age, and include cover for any medical conditions.
In our travel insurance review you can compare policies on the cover they offer, and view how each policy compares on cost using our 'price score'.
CHOICE tip: You'll save money and get better cover with insurance policies recommended by CHOICE. Unlike other insurance comparison websites, we don't get paid by any of the insurers we're comparing. CHOICE is nonprofit, so your membership fees help us fight for fair consumer rights, and empower you to get the best products.
Annual or single-trip policy?
If you're just going on one holiday, you only need a standalone or 'one-trip' travel insurance policy.
We've listed the worst-value single trip policies below, but if you travel often, you might like to consider an annual multi-trip policy.
If you visit our insurance review, and filter on annual policies, you'll find these policies can provide good value for money. Check the fine print as some can restrict the length of each trip you take.
The lowest scoring travel insurance policies
The best CHOICE Expert Rating we've given a one-trip policy in our review is 72%. The policies we list below get 56% or less.
We rate travel insurance based on the value you get for the price. The lowest rating policies cover overseas emergency medical and hospital expenses, so they're better than no cover at all, but there are cheaper policies out there with better cover.
CHOICE experts recommend you give these policies a wide berth in your travel planning.
1. World Nomads Standard one-trip policy
- CHOICE Expert Rating: 55%
- Cover score: 55%
- Price score: 54%
This is a perfectly average policy for a perfectly average price. It doesn't have the worst cover or the worst price, but there are a lot of policies that provide more cover and are cheaper, including several we recommend.
Compared to several policies that are cheaper (on average), this policy has a lower age limit and a lower limit for medical, baggage and cancellation expenses. Look elsewhere for better and cheaper cover.
Read the full World Nomads Standard one-trip policy review.
2. Allianz Basic one-trip policy
- CHOICE Expert Rating: 56%
- Cover score: 41%
- Price score: 79%
This is a medical-only policy, which means it will only provide coverage for certain types of medical expenses, and not for other travel-related costs such as lost baggage or missed flights.
Unfortunately, CHOICE experts say that even with the lower than average price, the minimal cover means it's not a great deal.
Read the full Allianz Basic one-trip policy review.
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Stock images: Getty, unless otherwise stated.
