The latest travel statistics from the Australia Bureau of Statistics (ABS) reveal Australians are on the move with passports in hand.
In the 2022 to 2023 financial year, the number of Australian travellers returning from short-term overseas trips skyrocketed to 8.3 million – five times more than the previous financial year.
It’s no surprise why. COVID-19 travel restrictions have eased. Global travel is officially open. Australians are keen to jet-set on holiday.
But between airfare and accommodation, travel budgets have also stretched. Now more than ever, saving money however you can is essential, including on travel insurance.
But how much does travel insurance cost? And how can travellers save?
Mozo’s latest research revealed a +24% increase (on average) in the cost of travel insurance since 2022. Now, the average comprehensive policy cost* is $515.
Some types of travel insurance increased in price much more than others.
Using pricing data from previous Mozo Experts Choice Travel Insurance Awards, Mozo analysis found cruise travel insurance had the highest annual increase in cost, rising +32% to $528.
The cost of essential or basic travel insurance rose the least (+15%), coming to an average $376.
Ski travel insurance rose +26% to $549.
The average multi-trip travel insurance policy costs $985.
*Family of four on a 14-day trip. Average calculated using all destinations analysed by Mozo judges.
Mozo research found international travel insurance costs on average between $13 and $20 per day.
Comparing could literally pay off for Aussie travellers. Mozo found comparing quotes for travel insurance could save Aussies between $100 - $150, based on the average vs. cheapest policy prices.
Comparing travel insurance quotes lets you know how much one policy could save you.
Mozo research found these destinations have the biggest difference between average travel insurance cost and the cheapest travel insurance.
According to Mozo’s research, these travel insurance providers had the cheapest comprehensive travel insurance policies for a family of four on a 14-day trip to these popular destinations.
Every traveller has different needs, so no single policy is the best for everyone.
However, Mozo’s expert judges compared hundreds of travel insurance policies for the 2024 Mozo Experts Choice Travel Insurance Awards.
Now in its tenth year, these awards recognise travel insurance providers that offer the highest quality coverage for the best value for money.
“The winners’ list can help Australians find the best travel insurance policy without having to secure dozens of quotes,” says Mozo money expert Rachel Wastell.
All travel insurance policies considered in the awards included unlimited medical coverage, including for COVID-19 infection.
Always read the product disclosure statement (PDS) before signing up for a policy.
For two years in a row, Mozo’s expert judges crowned World2Cover as the Travel Insurance Provider of the Year.
World2Cover stood out in judging for its exceptional quality and value coverage.
Although World2Cover did not offer the cheapest policies, Mozo experts found it provided higher quality coverage for just $5 more daily than the cheapest policy.
In a world of pandemics, flight cancellations, and lost luggage, travel insurance has become an important expense for travellers – if not always glamorous.
Travel insurance is designed to financially protect travellers from unexpected costs, such as medical evacuations and treatment, damaged belongings, or even rental car excess.
Instead of the traveller paying completely out of pocket, they can make eligible claims on their travel insurance to get some or all of their money back.
For travellers on a budget, the right policy could make a huge financial difference.
However, many Australians may avoid considering travel insurance simply because they don’t know how much it costs in the first place.
Travel insurance costs depend on many things (such as destination, length of stay, and activities), so comparing travel insurance providers can help Aussies save where they can.
According to Mozo’s research, opting from an average premium to a cheaper one could save Aussie travellers over $100 per trip.
“Mozo’s research shows Aussies could be paying hundreds of dollars more than they need to if they’re not comparing travel insurance policies,” says Mozo money expert Rachel Wastell.
“Travel insurance might not be the most exciting expense to organise when planning a holiday, but it’s critical Aussies don’t rip themselves off by choosing the first policy they see.”
The figures above are based on the cost of a comprehensive travel insurance policy for a family of four (two adults and two children), travelling to and from that destination for 14 days. The costs were then divided by two, as with family travel insurance policies, dependents are included for free.
