1Cover Travel Insurance

Updated 12 April 2019

Summary of 1Cover Travel Insurance

Looking to buy 1Cover Travel Insurance? Our guide covers its stand out points, pros, cons and limitations.
On the outset, if you are going skiing or on a cruise, the standard 'Comprehensive' policy won't be enough - you will need to purchase additional cover on the policy.
Our pricing review compares 1Cover Travel Insurance to other popular products offered by AA, AMI and Southern Cross.
1Cover Travel Insurance is widely popular, insuring thousands of New Zealanders every year who travel overseas. But it may not be right for you, and we have put together this guide to outline the most important features.
We update our example pricing every 90 days, with an extensive number of policies reviewed in our travel insurance comparison guide.

Our guide covers:

Travel Insurance Basics - What You Need, and Why

Travel insurance is a major expense on any holiday, but it need not be. There are many companies selling travel insurance, but finding out 'which one is best' is not easy.

What should travel insurance cover?

Basic travel insurance must cover four key risks:

Medical expenses - should you get sick or have an accident, all of your medical costs will be taken care of.
Lost, damaged and stolen items - if something is lost, stolen or damaged, you will be paid out up to a reasonable amount
Cancellation - if you book your travel arrangements and then get ill, you can claim on the non-refundable costs
Disruption - if you need to return home, experienced delayed flights or missed connections, you will be compensated

Limits always apply

Be aware - many travel insurance policies limit almost EVERYTHING. For example, the maximum cover of individual items is usually $1,500 to $2,500, unless you specify extra cover and pay additional costs.
This means that if you lose a $5,000 watch or $3,000 handbag, the most you will be able to claim is the limit of the policy, unless you insure the items separately.

Do I need travel insurance?

If you're going overseas, basic risks must be covered to prevent serious financial problems if and when disaster strikes. For example, medical costs can run up into thousands of dollars for simple treatments overseas. Theft, or damage to belongings can be expensive and ruin a trip, while cancellation and disruption to your travel plans can be costly.

By insuring for these risks with travel insurance, you are 100% protected if and when a problem arises. If you don't have travel insurance, you are taking a serious risk. The media is full of stories about uninsured travellers stuck in hospitals while bills run up into thousands of dollars. Worse than that, many hospitals around the world will not treat you unless there is payment upfront.

Cover for medical bills is the most important benefit of travel insurance

Travel Insurance protects you from having to pay huge medical treatment and air-evacuation bills. As mentioned above, In many countries, hospitals and clinics won't treat a patient without pre-approval from an insurer. Having insurance in such situations could make a difference between life and death.
To limit the risk of a claim being denied, it is the responsibility of the person buying a policy to FULLY disclose all pre-existing medical conditions. This includes a condition that has been diagnosed, treated and/or investigated by medical practitioners.
Travel insurers never check customers' medical records before a claim. Only when a claim is made do they check. And they check in incredible detail.
Buying travel insurance should never be rushed - travellers with pre-existing conditions must tell the insurer, and check to make sure any claims that relate to that condition will be covered.

Is expensive travel insurance better than cheaper travel insurance?

The best travel insurance is the one with the best cover and minimum exclusions. A low excess (the cost of making a claim) is also an advantage. What each insurer charges is not a reflection of the benefits offered - comparing travel insurance is essential to avoid being ripped off.

1Cover Travel Insurance in 10 Points

To simplify the policies, we present the most important details below.

1. What does the policy cover?

1Cover Travel Insurance's most popular policy is the 'Comprehensive Plan'. This includes a range of benefits covering:

Cancellation and Travel Disruption
Overseas Medical Assistance
Rental Car Excess
Luggage and Personal Effects

2. Is there anything that could stop me from being paid out for a claim

There are few exclusions; which have been reported in the media. For example:

Cancellation before or during travel - Stuff reported a story where the costs of returning to New Zealand due to the death of a policyholder's mother was not covered, because there is no cover if the event was caused by a "pre-existing medical condition suffered by a Close Relative or any complications directly attributable to those conditions". If you have a sick relative that you already know about before you go on holiday, and need to return home because of that relative, it's unlikely you will be covered for the costs you incur for cancelling a trip or returning earlier.
Policy purchase and cover - your travel insurance and benefits generally start from the start of the policy (except for already overseas policies). For example, if you booked your trip in March, purchase 1Cover travel insurance in June and were set to travel in September, but had to cancel, you would be covered if there was provision to claim
Resumption of Travel - if you are forced to return to New Zealand due to serious Injury, illness, disease or death of a close relative, you won't be covered to resume your travel overseas at a later date if you were away already for more than 50% of your time, or the total trip is less than 14 days in total. This means any policy issued for less than 14 days doesn't include this cover.

3. Is it expensive?

When compared to similar policies available from other insurers, 1Cover's insurance quotes were the cheapest for three of our example trips, and second-cheapest for another five. We compared 1Cover Travel Insurance with AA, AMI and Southern Cross travel insurance policies.
The policy offers a range of benefits, some are superior to other insurers, but others are not. The table above details the cover.
On 22 March 2019, we obtained sample quotes for two travelling couples - two 35-year-olds, and two 70-year-olds. The overseas cover we sourced quotes for four trips - 7 days in Australia, 2 weeks in Bali, 2 weeks in the USA and 4 weeks in Europe. The results are presented below.

4. Who guarantees the policy?

Lloyd's, one of the world's largest insurers, provides the cover on behalf of 1Cover Travel Insurance who merely sells the insurance under its own brand.

5. Does Lloyd's sell other travel insurance in New Zealand?

Yes, similar cover is offered by 1Cover's sister companies, Zoom Travel Insurance, and Downunder Worldwide Travel Insurance.

6. Is there 24/7 support, how do I make a claim and how long does it take process a claim?

Emergency assistance is provided 24 hours/7 days a week by First Assistance who operate an international assistance network.
Policyholders make a claim via the 1Cover Travel Insurance website, over the phone, or via email. Claims must be made within 30 days of the date you return to New Zealand. It's best to claim as soon as you can, even if you are overseas.
Claims are assessed within 10 business days, and payments are made in New Zealand Dollars into a nominated bank account.

7. What about pre-existing medical conditions?

Some are automatically covered, but others are not. Our section on pre-existing conditions below explains everything in detail.

8. Can I get a discount on the policy?

1Cover has a page with all the latest discount codes and offers.

9. What are the alternatives that offer a similar level of cover?

Similar cover is offered by a range of travel insurers, including AA, AMI and Southern Cross.

10. What happens if my travel insurance claim is rejected?

Many claims are rejected every year by travel insurers all over New Zealand. It can cause misery and frustration, but in many cases the reason is justified.
If you are denied a claim and you feel the decision is wrong or not justified, you can take your complaint to the Financial Services Complaints Limited (FSCL).
Travel insurance policies, in general, make up a large number of the complaints formally investigated by FSCL.
According to our research, after having their claims rejected people complained to the FSCL about the following topics:

The policyholder not receiving important information, or if information was received, it was ambiguous or poorly worded.
The policyholder failing to disclose certain information
The policyholder not understanding the insurance policy

If you do need to complain, the FSCL will investigate and see if your claim is valid. If it is, it will decide in your favour, which usually means the insurer will pay out. However, if the travel insurer's original assessment is found to be correct, you won't receive any money. There is no cost for using the FSCL.

1Cover Travel Insurance Pros and Cons

Pros

1Cover offered the best quotes in our testing of elderly travel with no pre-existing medical conditions (compared to AA, AMI and Southern Cross).
For personal belongings, there is a generous $3,000 cover limit for computer/camera and $1,000 for phone/tablet, with each additional item limited to $750.

Cons

Cruise cover and ski cover are additional charges
There is no $0 excess option - this means you'll either pay $100 or $200 per claim.
No online or loyalty discounts, and coupon codes are rarely made available.

Overall:

1Cover Travel Insurance is a major player in New Zealand, and offers a level of cover consistent with that of other providers. The usual limitations and stipulations apply.

Similar cover at half the price?

We compared the cover and policy costs to those in our full travel insurance comparison review.
Many other insurers offer similar cover of core benefits (medical, personal liability, personal items, dental etc) at a discount to the quotes we obtained from 1Cover.
We base this observation on a sample quotes for our two 35-year-old travellers visiting the Australia, USA, Bali or Europe.

Four Must-Know 1Cover Travel Insurance Facts

Travel Insurance is about covering for the unpredictable

Many New Zealanders 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, and if disaster strikes, being without cover can be frightening and financially ruinous.
Any trip overseas exposes you to unpredictable events; no one can predict the future and even “safe” destinations expose you to unforeseen risks.
We believe travel insurance is about protecting yourself from the things you don’t plan for and don’t want to pay for.

Be completely honest when buying a policy and ALWAYS declare ALL medical conditions

All travel insurers, including 1Cover, have a good reputation for paying claims, but they are under no obligation to pay you if you lied or withheld information when you applied. To best protect you from a nightmare later on, give your insurer a full description of any or all of your health problems. You may have to buy additional cover for pre-existing conditions, but this protects you should something happen while you're away.

1Cover Travel Insurance's Comprehensive Policy will include pre-existing medical conditions when:

The condition has been stable for more than 12 months, and
There is no planned surgery, treatment or specialist review, and
You have no attended hospital for treatment for the condition in the last 12 months

The covered pre-existing conditions include, for example, asthma, vertigo, cataracts, hypertension and hernias, among others. It's best to read over the table of pre-existing conditions to see where you stand.

Advance purchase: If you buy the policy in advance before your trip, and then later, leading up to your departure, you have treatment for a medical condition that arises, you will need to notify 1Cover immediately to see if you will be covered for any related-medical expenses overseas.

Check that your activities will be covered

1Cover, like most travel insurance policies, has a number of exclusions.
For example, if you plan to go beyond the beaten path and hire a motorbike, you must have a motorbike licence.
Skiing will require additional cover, as it's not included in the standard comprehensive policy.
If you go on a cruise, you'll need additional cover as well.
1Cover Travel Insurance specifically excludes a number of activities, including hunting, sailing 10 miles off the coast, quad biking, mountaineering and rock climbing, hiking above 3,500 metres, professional sports, parachuting, hang gliding, diving without a licence, flying in a aircraft that's not an airline or charter, among others. 1Cover's website lists the details under 'General Exclusions'.

Intoxication or being under the influence of drugs will void your cover

1Cover Travel Insurance's terms and conditions make it clear - you won't be covered if you are "under the influence of any intoxicating liquor or drugs". It doesn't define if 'under the influence' is one drink, two drinks or intoxicated by local laws or New Zealand laws. We asked 1Cover to clarify, their response:
"Intoxicated is determined by local laws and regulations. For example if you were on a scooter after drinking and your Blood Alcohol Concentration (BAC) was higher than the limit for that particular country, you would be classed as intoxicated".

What does this mean for day-to-day travel?

It's best to behave with caution, and be responsible. If you go out at night and lose your bag while intoxicated, 1Cover Travel Insurance won't cover you.
It’s important to have common sense when it comes to alcohol and travel. 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.

1Cover Travel Insurance Frequently Asked Questions

How many people can I include a policy?

You can include up to 25 individuals on one policy.

Are children covered for free?

Yes - dependent children under 19 years are covered at no additional charge.

Does 1Cover Travel Insurance cover lost, stolen or damaged luggage and personal belongings?

Yes - up to a maximum of $15,000 per incident, with limits to the value of each item per 'category' as outlined below:

Item Category	Maximum payable for the first item	Maximum payable for every subsequent item in the same category
Category 1 - Personal computer, video recorder or camera	$3,000	$750
Category 2 - Mobile phone, tablets	$1,000	$750
Category 3 - other items	$750	$750

Does 1Cover Travel Insurance cover cancellation fees?

Yes - unlimited cover is provided for loss of deposits and cancellation of any journey paid in full. But, there are exceptions, and you will need to purchase a policy BEFORE you make any bookings to ensure they are covered.

Can I pay to reduce my excess?

Yes - 1Cover Travel Insurance offers excesses in $200 (standard) and $100 - choosing a $100 excess means the overall policy cost increases slightly.

What is the maximum length of a single trip?

365 days

What additional extras are there, and how much do they cost?

A Comprehensive policy does not cover ski or cruise activities, so these need to be purchased separately (see below).

Personal items - insuring specific items you need protected

1Cover offers the option of purchasing additional cover for specific items, with a limit up to $5,000 per item, with a limit of $5,000 per claim.
These items cannot be older than 12 months from the date you take out the insurance, and you will also have to provide receipts and/or valuations if making a claim.

Am I covered if I go on a cruise?

No - you need to purchase a separate 'Cruise Pack'. The benefits and limits include:

Pre-Paid Shore Excursions Cancellation - $1,000
Missed Cruise Departure - $2,500
Cabin Confinement/Loss of Enjoyment - $1,500
Missed Port Cover - $750
Formal Attire Cover - $1,500
Formal Attire Delay Allowance - $250

The cruise pack covers you if disaster strikes and the weather prevents activities, have an accident or get sick etc. 'Missed departure' is a restrictive benefit where a claim will only be paid if you are in an accident, there is a riot or strike, natural disaster or weather conditions. Being late because you got lost track of time is not covered.

Am I covered for skiing and my equipment?

No - you need to purchase a separate 'Winter Sports Pack' if you plan to ski or snowboard at a ski field. The benefits and limits include:

Emergency Rescue - unlimited cover
Ski Pack - $750
Piste Closure - $1,000
Bad Weather & Avalanche Closure - $750
WInter Sports Equipment Hire - $1,500
Winter Sports Equipment Excess - $1,750

If you plan to claim, it is likely you will pay a 'double excess' if the loss is ski-related. For example, if you damage your skis and have a $100 excess, you will need to pay $200 when you make a claim. At all times, you must stick to on-piste on a regular ski field, and the activity is non-competitive.

Am I covered if my tour company collapses?

No - this is a standard exclusion and there are no exceptions. The same applies to any airline, transport provider, travel agent, or wholesaler.

I'm not a New Zealand resident - can I buy cover?

No - 1Cover only sells travel insurance policies to New Zealand citizens, residents and permanent visa holders.

What size moped or motorbike am I covered to ride overseas?

Yes, but there are restrictions.

Motorbike: You need to hold a New Zealand Motorbike Licence (or if you're a passenger, the driver needs to have a valid licence valid for the country you are travelling in)
Scooter and Moped: You need to hold a New Zealand Motorbike Licence or Drivers Licence (or if you're a passenger, the driver needs to have a valid licence valid for the country you are travelling in) AND the Scooter or Moped has to have an engine size of 'less than 50cc'.
The policy is silent on whether or not you need to wear a helmet to be covered.

Can I extend or upgrade my policy while I am travelling overseas?

Yes, you can extend. Here are the scenarios where you may need to delay:

1. Extension because you're staying away longer

If you need to extend before your policy has ended because you are staying away longer, 1Cover offers policy extensions, where applicable, but you will need to pYay for this.
You can apply to extend your policy by either getting in contact with 1Cover's call centre team, or alternatively you can log in to the Policy Manager. 1Cover states that extensions are not always available, but you will be made aware of this.
Be aware, once a policy lapses, 1Cover are unable to extend it.

2. Extension because of a delay
1Cover allows this, free of charge, if you find that your return to Australia has been delayed because of one or more of the following:

A bus line, airline, shipping line or rail authority you are travelling on, or that has accepted your fare or luggage and personal effects, is delayed.
The delay is due to a reason for which you can claim under your policy (subject to 1Cover approval) per 1Cover's policy document.

Does 1Cover Travel Insurance cover rental vehicle excess?

Yes - the Comprehensive policy covers you for the insurance excess you are required to pay, as a result of loss or damage to a rental vehicle you have hired, up to $5,000. You can also pay extra to increase the cover up to $8,000, although in most cases $5,000 should be sufficient.

How does this work?

This benefit means you can avoid paying for 'excess protection' or 'excess reduction' insurance when you rent a car
Usually, you will need to put a hold on your credit card.
If you have an incident, your credit card will be charged the car rental's excess fee. You will then need to claim this fee from 1Cover when you get back to New Zealand.

Where is 1Cover Travel Insurance based?

1Cover Travel Insurance's head office is in Auckland.

What is the best way to buy an 1Cover Travel Insurance policy?

Online, or by phone (operating 7 days a week - 0800 000 333).