1Cover vs Southern Cross vs AA Travel Insurance - Comparing Comprehensive Policies Side-by-Side

Compare 1Cover, Southern Cross, and AA Travel Insurance comprehensive policies side-by-side. Understand the benefits and coverage limits to decide on your next trip. Our guide helps you navigate the complexities of travel insurance and select the best policy for your needs.

Southern Cross Travel Insurance vs AA vs 1Cover

Updated 21 June 2023

Summary

Much confusion exists around what travel insurance policy to buy, what's best and what you need to be covered for.
Popular travel insurers favoured by New Zealanders include 1Cover, AA Travel Insurance and Southern Cross Travel Insurance.
In this comparison guide, we look at the pros and cons of each insurer's comprehensive policy and compare it to its competitors.
The insurers listed are not the only options; many travel insurers use the same underwriters. This means all claims and processing are handled by the 'super insurer' rather than by the insurer you bought the policy from. The most notable exception is Southern Cross Travel Insurance, which doesn't use an underwriter but instead underwrites its policies (as outlined in their About Us section).
As a point of comparison, 1Cover is underwritten by Lloyd's (who also provides travel insurance policies for TINZ and Zoom), while AA Travel Insurance is underwritten by Allianz (who also provides travel insurance policies for AMP, Tower and World Care).

Our guide covers:

Our Comparison Approach:

MoneyHub receives more emails about travel insurance than anything else on our website, and we're proud to be a trusted source of information to help New Zealanders decide what's best for them.
Our view is that comprehensive policies provide better value for money than medical-only or 'budget' versions, given the complexities arising while overseas. For example, if the airline loses your bags, medical and budget policies generally won't offer you any form of cover or benefits, which arguably weakens the policy's value for money.
Every policy has a benefits list and cover limit; the benefit is what you're covered for (e.g. cancellation of travel, medical costs), and the cover limit is the maximum you will receive.
Many New Zealanders have been caught out by not reading their policy's fine print and making claims that exceed the cover limit or are part of an event that isn't listed as a benefit. This is arguably why travel insurance has a reputation for being problematic when claiming and getting approved. Understanding what a policy covers is essential to buying the right one.
The benefits of the travel insurance policies below encompass a broad range of common travel risks. These include medical emergencies, trip interruptions or cancellations, personal liability, loss or damage of personal items, and additional services like rental car excess coverage and pet services. We focus on providing a list encompassing many of the primary areas of concern for most New Zealanders heading overseas.
However, it's also essential to remember that individual needs and risks can vary greatly depending on the specifics of your trip and personal circumstances.
For example, some travellers need specific coverage for high-risk activities such as snow sports, pre-existing medical conditions, or coverage for pregnancy. Others may need higher coverage limits depending on their destination or the value of the items they travel with.
Whatever you buy, please ensure the policy you choose fits your needs and thoroughly understand the terms.

Do you want to buy a policy? We suggest you enter your travel details using 1Cover, AA Travel Insurance and Southern Cross Travel Insurance to see the current pricing. All three insurers offer online quotes in less than a minute.

Video Summary: Dive into our brief video below. It highlights essential points to guide you in choosing the ideal policy for your trip

Southern Cross Travel Insurance vs AA vs 1Cover Coverage and Limits

1Cover vs Southern Cross vs AA Travel Insurance: Benefits and Cover Limits Compared

Our comparison assumes you're between 18-65 and don't have any pre-existing conditions. If you have specialist needs, our guides have further information:

Our 1Cover vs Southern Cross vs AA Travel Insurance policy comparison look at two key benefit areas:

Medical, Travel Disruption, Baggage and Other Essential Benefits and
Life, Income and Personal Liability Benefits

1. Medical, Travel Disruption, Baggage and Other Essential Benefits

Medical Costs

Southern Cross: Unlimited
1Cover: Unlimited
AA Travel Insurance: Unlimited

Our View: Medical costs can be extremely high overseas, and when it goes wrong, not having travel insurance can be a matter of life, death or a huge debt. These are the situations you read about in Stuff.co.nz and NZHerald, which usually include links to a givealittle page when there's no travel insurance. A travel insurance policy offering unlimited medical costs coverage can provide significant peace of mind. This covers hospital charges, medication, treatments, and even medical evacuation back to New Zealand if necessary. With a medivac from Samoa costing $100,000+ and surgeries in the USA in excess of $250,000, "unlimited" medical expenses provides the best type of travel insurance cover.

Cancelling or Changing Your Journey Before You Leave

Southern Cross: $2,500+ (higher cover needs to be bought as an add-on)
1Cover: Unlimited
AA Travel Insurance: Unlimited

Our View: Travel plans can often change unexpectedly for various reasons - don't underestimate how common it is to get ill and cancel a trip altogether. A policy that covers cancellation or change costs can protect you from substantial financial loss - airfares out of New Zealand are expensive and rarely refundable if you cancel. A cancellation benefit is particularly crucial in times of uncertainty and general bugs going around New Zealand that can force you to cancel, and the cover starts as soon as you buy the policy.

Emergency Dental Treatment

Southern Cross: $2,000 per paying person
1Cover: $1,000 per adult
AA Travel Insurance: Emergency Dental Treatment – Pain Relief Only $1,000, as a result of an Injury $3,000

Our View: Dental emergencies can occur anytime and lead to substantial out-of-pocket costs; travellers often overlook this benefit, but it steps in when a dental issue derails your travel. The cover levels have a relatively low cap (compared to medical), but they're designed to insure you for treatment for sudden pain and emergency dental treatments.

Cash Allowance While in Hospital

Southern Cross NZ: $100 for each complete 24-hour period, up to $3,000 per paying person
1Cover: Hospital cash allowance up to $5,000
AA Travel Insurance: Incidental Hospital Expenses $4,000

Our View: A cash allowance while in hospital can assist with non-medical costs, such as additional transport or communication charges, which can add up when hospitalised overseas. This cover can ease the financial burden during a stressful time when you're undergoing medical treatments.

Changes to Your Journey Once You've Left

Southern Cross NZ: Up to $50,000 per paying person
1Cover: Additional accommodation and travel expenses up to $50,000
AA Travel Insurance: Resumption of Travel $10,000

Our View: Travel disruption can often result in extra expenses due to changes in accommodation and transport arrangements that must be booked at short notice. A policy that covers these costs can help to keep your trip on track and reduce stress.

Baggage and Personal Items

Southern Cross NZ: Up to $25,000
1Cover: Up to $15,000
AA Travel Insurance: Up to $30,000

Our View: Lost, stolen or damaged baggage and personal items can be a major travel inconvenience and expense. However, all insurers have 'sub limits', meaning each item has a cover cap (e.g. $1,500 etc.) unless specifically listed and/or insured as an add-on. Our view is that it's best to travel with lower-value items, but that does not apply to everyone, so if you need something on your trip, it's essential to ensure the items are specified. You'll need to buy extra cover if there's an insufficient standard limit.

Cash, Bank Cards, Travel Documents, and Passports

Southern Cross NZ: Up to $1,000 per paying person (Cash up to $500)
1Cover: Credit card fraud & replacement up to $5,000, theft of cash up to $250
AA Travel Insurance: Travel Documents $3,000, Personal Money $500

Our View: A policy that covers coverage for the loss or theft of cash, bank cards, travel documents, and passports is essential. Replacing these can be a costly and complex process. This benefit can mitigate the financial impact of such a situation.

Rental Vehicle Excess

Southern Cross NZ: $10,000 per paying person
1Cover: $5,000
AA Travel Insurance: $6,000

Our View: Rental vehicle excess cover can save you from paying the excess charge (equivalent to at least NZ$4,000+) in case of an accident or damage to the rental vehicle, whether or not you're at fault. This benefit can save you significant money should you not take out your car hire company's excess buy-out option. For more information on how this works, our guide to car rentals explains your options.

Pet Services

Southern Cross NZ: $100 for each day, up to $1,000 per paying person
1Cover: Domestic pets up to $500
AA Travel Insurance: Not covered

Our View: If you're travelling with pets, or leaving them at home, having cover for pet-related services can be beneficial. This can include costs related to pet care if your return home is delayed.

Do you want to buy a policy? We suggest you enter your travel details using 1Cover, AA Travel Insurance and Southern Cross Travel Insurance to see the current pricing. All three insurers offer online quotes in less than a minute.

2. Life, Income and Personal Liability Benefits

Life benefits generally cover serious events like accidental death, permanent disability, or severe injury, while personal liability benefits offer coverage if you are legally responsible for accidental injury or damage to another person or their property during your trip.

While not commonly claimed by New Zealanders overseas, these are crucial aspects of any travel insurance policy as they can provide financial support and protection in extreme circumstances.

Personal Accident

Southern Cross NZ: Up to $50,000 per injured or deceased paying person
1Cover: Accidental death up to $25,000, permanent disability up to $25,000
AA Travel Insurance: Accidental Death or Permanent Disablement $50,000

Our View: Personal accident cover provides a lump sum payment in the event of serious injury or death. This can be a significant help to you or your family during a distressing time.

Loss of Income

Southern Cross NZ: Up to $6,500 per injured paying person ($500 for each week)
1Cover: Up to $10,400
AA Travel Insurance: Not covered

Our View: If an injury during your trip prevents you from working once you return home, loss of income coverage can help offset your financial loss. Not all policies offer this, so consider whether it's important for your circumstances. If you already have income protection insurance, this will also provide benefits.

Personal Liability

Southern Cross NZ: $1,000,000 per paying person
1Cover: $5 million
AA Travel Insurance: $2,500,000

Our View: Personal liability cover is essential in case you're found legally liable for accidental injury or damage you may cause to another person or their property. This can protect you from potential lawsuits and large payouts.

Southern Cross Travel Insurance vs AA vs 1Cover Best Policies

Best Policies and Our Conclusion

Choosing between 1Cover, AA Travel Insurance, and Southern Cross Travel Insurance can be challenging due to their distinct offerings and areas of focus. However, all three provide robust and reliable cover, offering peace of mind during travel.

Overall:

1Cover stands out with its high coverage limits and comprehensive policy for personal liability and rental vehicle excess.
Southern Cross' self-underwriting model can lead to more seamless claim processes. However, depending on your travel costs, their cancellation cover may need a top-up.
AA Travel Insurance, underwritten by Allianz, brings strong industry backing and substantial coverage for baggage and personal items.
However, the best travel insurance policy depends entirely on your circumstances, travel plans, and the specific risks you want to cover. No single policy suits everyone. Remember to consider all your travel needs, including potential changes in plans, the value of your belongings, medical cover, potential rental car usage, and possible personal liability scenarios.
Also, bear in mind the importance of understanding the specific terms and conditions of the chosen policy. Ensure the policy covers all your needs and that you are well aware of the claim process should an unforeseen event occur during your travels.

Buying a Policy with Confidence:

Understand your travel needs and risk exposure.
Compare the different policies and benefits - start with 1Cover, AA Travel Insurance and Southern Cross Travel Insurance to compare the pricing.
Read the policy wording for all potential policies carefully.
Consider the insurer's reputation, customer reviews, and claim handling process.
Take time to decide – there's no need to rush, although cancellation cover will come into force from the day you purchase the policy.

Important:

No matter which provider you choose, the right travel insurance policy will give you peace of mind to enjoy your travels to the fullest.
If you have any questions or suggestions to improve our travel insurance research, please contact our research team.

Southern Cross Travel Insurance vs AA vs 1Cover Best Policies FAQs

Frequently Asked Questions

The information below is general in nature - each insurer's policy differs in the specifics of what is covered and the process for claims. Always read the policy wording for each insurer before making a decision, and ask the insurer to explain anything you don't understand.

How do I get a quote for 1Cover, Southern Cross or AA Travel Insurance?

For all three providers, you can get a quote online by visiting their official websites. You'll need to provide details about your trip, such as the destination, duration, and the travellers' ages.

Are there age restrictions for these insurance providers?

Yes, there may be age restrictions depending on the provider and the type of insurance. Check each insurer's policy documents for specific age requirements.

Are pre-existing medical conditions covered under these insurers?

Each insurer has a different approach to pre-existing medical conditions. 1Cover, for example, automatically covers a range of conditions, while others may require an assessment. Southern Cross covers some conditions automatically and others with an additional premium. AA Travel Insurance also covers certain pre-existing conditions but may require a medical assessment for others. Always disclose pre-existing conditions to your insurer to ensure proper coverage.

Can I extend my policy if I decide to travel longer?

Typically, you can extend your policy with 1Cover, Southern Cross and AA Travel Insurance as long as you request the extension before your original policy expires and meet their criteria. Note that terms and conditions apply; not all extensions may be granted.

What happens if I need to cancel my policy?

Each provider has a cooling-off period during which you can cancel your policy and receive a full refund, provided you haven't started your journey and don't intend to make a claim or exercise any other right under the policy. For 1Cover and Southern Cross, this period is 14 days per their website, while AA Travel Insurance's 14-day cooling off period is outlined in their policy wording.

What's the process for making a claim?

All three insurers offer an online claims process through their respective websites. You'll need to provide supporting documentation like medical reports, receipts, or police reports. Making a claim as soon as possible following the incident is essential - you can see how to do this for 1Cover, AA Travel Insurance and Southern Cross Travel Insurance.

Are adventurous activities covered?

Coverage for adventurous activities varies among insurers and may not be included as standard. For example, 1Cover provides a list of activities covered in their policy, while Southern Cross and AA Travel Insurance may require additional coverage or exclude certain high-risk activities. Always check the policy to confirm what activities are covered before participating.

Are valuables such as electronics, jewellery, or cameras covered?

Yes, these insurers typically provide some level of cover for personal items and valuables. However, there is usually a limit per item and overall. Also, high-value items may need to be declared separately, and an additional premium may be required. It's advisable to check the specific policy terms for each insurer for exact coverage and consider buying extra cover if it's available.

Does the policy cover travel disruption due to natural disasters?

Yes - 1Cover, AA Travel Insurance, and Southern Cross cover travel disruption due to unforeseen natural disasters. However, the exact terms and coverage amounts can vary, and certain conditions may apply. Reviewing the policy documents for detailed information is recommended.

What if I need to return to New Zealand earlier than planned?

If you need to return home earlier than planned due to a covered reason (such as a medical emergency or death in the family), these insurers generally provide cover for the additional cost of your return journey. In such situations, contact your insurer as soon as possible.

What happens if I have a complaint about my policy or claim?

All three insurers have a formal complaints process. If you have a complaint about your policy or a claim, you should first contact the insurer directly. If you're unsatisfied with their response, you can escalate your complaint to a higher authority like the Insurance & Financial Services Ombudsman (IFSO) in New Zealand.

Remember, when buying travel insurance, it's crucial to read the policy documents thoroughly and ask the insurer if you're unsure about any aspects of your cover.

Do you want to buy a policy? We suggest you enter your travel details using 1Cover, AA Travel Insurance and Southern Cross Travel Insurance to see the current pricing. All three insurers offer online quotes in less than a minute.