Cheap Travel Insurance
Annual policy $XXX, family $XXX
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Travel insurance for New Zealanders is expensive, but saving money on your next policy is easy with our complete guide. With one in six Kiwis flying out of New Zealand without travel insurance, taking a risk that could be costly. If you have booked a trip but not bought travel insurance, buy it now – it can cost as little as $XXX for annual cover and the peace of mind and full protection is worth the expense.
We don’t believe Travel Insurance is about picking the lowest price or the biggest brand. In this guide, we explain how travel insurance works and offer expert tips and tricks to get the most suitable cover while avoid paying top dollar. |
Over 65
Pre-existing conditions?
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The purpose of travel insurance is to protect you from paying for unplanned travel costs, such as medical bills, theft, delayed flights, lost luggage and cancellation, as well as returning early. Before you buy any policy for yourself or your family, we have 20 things you should know:
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Travel Insurance is about covering the unpredictableMany Kiwis take a risk and say “why would I get travel insurance, I probably won’t use it”. It’s the “probably” which is the issue. Any trip overseas exposes you to unpredictable events; no one can predict the future and “safe” destinations expose you to unforeseen risks. In summary, travel insurance is about protecting yourself from the things you don’t plan for and don’t want to pay for.
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Buy travel insurance as soon as you've booked your trip to take advantage of cancellation coverage and and pre-trip illnessMany travel insurance policies include pre-trip illness and cancellation benefits, so buying it at the same time as a flight/holiday gives you added protection for free. It’s never early enough to insure your trip and get refunded if you are too ill to travel.
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NEVER assume all policies are the sameThe coverage and terms of travel insurance are not always clear, and New Zealand insurers offer different inclusions and exclusions. There are many questions to ask yourself to make it easier, including:
What's typically covered under a travel insurance policy?
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Going away twice or more this year? Annual cover is cheaperIf you know you're going to travel at least twice in a 12-month period, consider an annual policy instead of single trip cover. This is because annual cover often works out cheaper than buying two single trip policies. But always do the calculations.
Of course, this varies depending on where you're travelling and for how long, but if you get an annual policy you also have the added comfort of knowing if you have a third trip within that 12-month period, you already have the cover in force. How many days can I travel for on my annual policy?
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Do I need travel insurance?Coming soon
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If I am holidaying in New Zealand, do I need travel insurance?Most policies will cover domestic New Zealand travel, but the benefits are not as useful compared to when you are overseas. As you can use ambulances, airlifts and hospitals for free as a New Zealand resident, the only significant benefits are theft/loss protection and cancellation. If you want peace of mind and protection for valuables, buying travel insurance for a New Zealand trip is recommended.
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Check with your credit card provider to see if you are already coveredMany credit cards include “free” travel insurance as part of their annual fee. If you have one of these cards, check out our credit card travel insurance guide to see what policy you have, who it covers and what it covers.
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If you are 65+ or there is a 65+ year old person in your group, consider taking a separate policyInsurers consider older travellers as high risk, and charge a lot more for a policy. If you are buying for a group, the price of the policy will be higher if you have one or more older people. It is often cheaper to get separate policies, i.e. one for the family and one for the grandparents, than combining everyone together in one policy.
To help you save money on travel insurance, we have written a full 65+ y/o Travel Insurance guide with tips, tricks and our recommended best policies. |
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Get quotes for individual policies and family policies, as one policy is often cheaper than two.If you are travelling with your partner or your family, you have two options. Firstly, you can get everyone covered under one policy, or get each person to take their own policy. However, in most cases it is much cheaper to get a combined policy.
However, in certain situations a separate policy may be cheaper, such as when one of the travellers:
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Be completely honest when buying a policy - ALWAYS declare your medical conditions!Travel insurers in New Zealand have a good reputation of paying claims, but they are under no obligation to pay you if you lied when you applied. To best protect you from a nightmare later on, give your insurer a full description of all of your health problems, as well as informing them if you are pregnant.
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One drink can prevent a claim from being paidThe terms and conditions of a travel insurance policy make clear - 'drinking too much' to 'approx four pints' to 'alcoholic abuse'.
It’s important to have common sense. If you are going to go wine tasting, don’t drive your rental car until you are sober. If you have half a bottle of wine at lunch and then go skiing, you may invalidate your policy. |
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Going skiing? It’s essential to have winter sports coverWinter sports can be dangerous, so as soon as you've splashed out on your break, make sure you are insured on the slopes. As well as covering you for the basics you'd get under a standard travel policy, you'll also be insured for activity-related injury and your winter sports equipment.
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Check our list of activities that travel insurance generally doesn’t cover, UNLESS you specifically get it added on:“Scooters”
“Off-piste skiing”. A MSL reader writes – “my friend was talked into going off-piste skiing by her friends during a week in Switzerland, despite knowing she wasn’t insured for that. She had an accident, broke her leg and had to pay very expensive bills. Had she been 50 metres away on the trail, she would have been fully covered by her travel insurance”. |
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Avoid overpaying on travel insurance, as the price difference is never worth it.Do you need $20m of medical coverage? The answer is no. Insurers love to make us Kiwis afraid and make us buy expensive coverage, but there is absolutely no reason to do so. With New Zealand insurers paying on average $3,500 for a medical claim, lower coverage limits are perfectly suitable and significantly cheaper.
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Avoid buying insurance with an airlineAirlines often offer travel insurance and “cancellation” insurance. We advise to avoid purchasing any insurance with an airline, as the policies cannot realistically be understood or assessed while you are focused on buying your airfare. Also, airlines are not insurers, and while they outsource their policies to third party insurers and offer frequent flyer points as a bonus, we strongly suggest buying a policy directly from an insurer to save money and get the most appropriate policy for your travel needs.
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Buying travel insurance from your travel agent can cost 4X moreThere is huge commission in travel insurance, far more than any airline ticket or hotel booking. Travel agents push travel insurance and rarely offer more than one provider. Avoid this trap and buy it yourself online – you will save hundreds of dollars.
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Read the reviews of your insurer before you purchaseFacebook pages are a good place to see how responsive the company is. Are there are lot of complaints about delays in paying claims, or not paying claims at all? Have a read through before buying any policy to make sure you are happy with the service.
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Avoid travel insurance comparison sites (for the moment)New Zealand websites such as “comparetravelinsurance.co.nz” and “trademeinsurance.co.nz” don’t compare every travel insurance company, in fact, far from it. One of these sites is even owned by a travel insurance provider! We suggest starting with our handpicked list below, which offer the best value and most appropriate coverage.
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Think about the excess charge, and pick a policy that suits you |
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Going on your OE? You will need specialist 'backpacker' insuranceThe big OE can be covered by If you're going away for more than 60 consecutive days then standard travel insurance is unlikely to cover you.
You'll therefore need specialist backpacker insurance – sometimes called gap year or extended leave insurance. These policies can protect you for up to 18 months as standard in most cases, and can even be extended. |
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Going on a cruise? Cruises need extra cover, so make sure you get it.Kiwis love cruises, but standard travel insurance cover often won’t protect you from cruise-specific events, such as missing your departure or being sick due to an onboard virus. See our best Cruise travel insurance picks below.
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How to claim successfully on your travel insurance policy
Claiming on your travel insurance shouldn't be daunting and – if you understand the terms and excesses on your policy – you shouldn't be in for any nasty shocks. Follow the five steps below in the event you need to claim.
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Submit your claim as soon as possibleContact your insurer as soon as you can. Some parts of your policy may have a short window to submit a claim and it may take a while to be processed.
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If it's a medical claim get an insurer to accept it firstIf you need to make a medical claim – and it is not an emergency – get an insurer to accept the claim over the phone first. For example, thieves make off with medicine kept in a handbag that you need urgently. If the insurer accepts the claim over the phone, you're less likely to be faced with a rejected claim later down the line. For obvious reasons, don't delay treatment if it is an emergency.
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If it's a theft or loss claim notify the policeIf something goes missing or is stolen when you are abroad you may need to get a crime reference number or the overseas equivalent to make a successful claim. Report the incident to the police as soon as you can – you often have to do it within 24 hours – to make sure your claim doesn't hit the skids.
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Keep your receiptsIf something goes missing or is stolen when you are abroad you may need to get a crime reference number or the overseas equivalent to make a successful claim. Report the incident to the police as soon as you can – you often have to do it within 24 hours – to make sure your claim doesn't hit the skids.
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Complain if you feel your claim was unfairly rejectedIf your insurance company rejects your claim and you think it has done so wrongly, do not take it lying down. Complain to the free Financial Ombudsman. The ombudsman is an independent adjudicator that will make the final decision on a claim if you are locked in a dispute with your insurer. For more on how to make a complaint, read our Financial Rights guide.
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How to complain about your insurance provider
The insurance industry doesn't have the best customer service reputation and while a provider may be good for some, it can be hell for others. Common problems include claims either not being paid out on time or at all, unfair charges, or exclusions being hidden in the small print. It's always worth trying to call your provider first, but if not then…
