Southern Cross Travel Insurance Review

Updated 11 October 2019

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Summary of Southern Cross Travel Insurance

• Looking to buy Southern Cross Travel Insurance? Our guide covers its stand out points, pros, cons and limitations. 
• Policies cost at least $400+ for a couple for 4 weeks in Europe; our pricing review compares Southern Cross Travel Insurance to other popular products offered by AMI, AA and 1Cover.
• Southern Cross Travel Insurance is widely popular, insuring thousands of New Zealanders every year who travel overseas. But is it right for you? ​
• 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
• Southern Cross Travel Insurance in 10 Points
• Southern Cross Travel Insurance Pros and Cons
• 5 Must-Know Southern Cross Travel Insurance Facts
• Southern Cross Travel Insurance Frequently Asked Questions

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: 

1. Medical expenses - should you get sick or have an accident, all of your medical costs will be taken care of. 
2. Lost, damaged and stolen items - if something is lost, stolen or damaged, you will be paid out up to a reasonable amount
3. Cancellation - if you book your travel arrangements and then get ill, you can claim on the non-refundable costs
4. 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 $3,000, unless you specify extra cover and pay additional costs.
• This means that if you lose a $7,000 watch or $6,000 handbag, the most you will be able to claim is the limit of the policy ($1500), unless you insure the items separately and pay for additional cover.

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.

Southern Cross Travel Insurance in 10 Points

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

1. What does the policy cover?

Southern Cross Travel Insurance offers two policy options - 'Single Trip', or 'Annual Multi-Trip'. Unless you plan to travel frequently to and from New Zealand within twelve months, the Single Trip is likely to be the most appropriate choice. Southern Cross calls its policy 'TravelCare', and it is what other travel insurers would call a 'Comprehensive Plan'. This includes a range of benefits covering:

• Cancellation and Travel Disruption
• Medical Events
• Life Benefits
• Personal Baggage, Effects and Personal Money

In the table below, we outline the benefits and limits of the Southern Cross policy, and compare it to those offered by 1Cover, AA and AMI. You can also download it as a PDF here. 

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:

1. ​Cancellation before or during travel - the death of a policyholder's mother, for example, would not be covered, because there is no cover if the event was caused by a pre-existing medical condition suffered by an immediate family member, or any complications directly attributable to those conditions. If you have a sick relative and go on holiday only to get a call to return home, it's unlikely you will be covered for the costs you incur for cancelling a trip or returning earlier.
2. Policy purchase and cover - your policy needs to be purchased BEFORE you start making your travel arrangements. If you purchase a travel insurance policy AFTER making your travel arrangements, and later need to cancel your trip before your departure, you won't be covered.
3. Validating a claim requires receipts of bank statements - Southern Cross requires original receipts for any items you are claiming for. If you don't have them, their claims team "may consider bank statements, valuations, or reprinted receipts from the store you purchased the item/s from".

3. Is it expensive?

• Southern Cross offered the cheapest policy costs for our example trips for two 35-year-old visitors to Australia, the USA, Bali and Europe, when compared to 1Cover, AA and AMI travel insurance policies.​ For 75-year-old visitors, the Southern Cross policies were second cheapest, coming just behind 1Cover overall. 
• Southern Cross offers a range of benefits, some are superior to other insurers, but others are not. You will need additional cover if you plan to ski or ride on a moped, motorbike or scooter.
• 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.

Table 1 - Quotes for two 35-year-old travellers

Insurer	1 Week Australia	2 Weeks USA	2 Weeks Bali	​4 Weeks Europe
1Cover Travel Insurance	$100.04	$​344.46	$189.71	$​288.33
AA Travel Insurance	$90.00	$512.00	$280.00	$580.00
​AMI Travel Insurance	$84.00	$382.00	​$314.00	​$436.00
Southern Cross Travel Insurance	$70.01	​$312.00	$168.61	$286.54

Table 2 - Quotes for two 70-year-old travellers​

Insurer	1 Week Australia	2 Weeks USA	2 Weeks Bali	​4 Weeks Europe
1Cover Travel Insurance	$​128.66	$759.63	$328.96	$​532.21
AA Travel Insurance	$144.00	​$786.00	$404.00	​$878.00
​AMI Travel Insurance	​$156.00	$644.00	$558.00	$654.00
Southern Cross Travel Insurance	​$150.51	$670.80	​$336.10	$565.09

Quotes obtained
1Cover Travel Insurance - $100 Excess, Comprehensive Policy
AA Travel Insurance - $100 Excess, Comprehensive Policy, NB: Prices are taken before 10% AA Member discount
AMI Travel Insurance - $100 Excess, International Plan. No existing customer discount applied. 
Southern Cross Travel Insurance - $100 Excess, TravelCare Policy. Prices are taken before 5% Member discount 
Note: Where "Europe" isn't an option, we have selected "France" in its place. 

4. Who guarantees the policy?

Southern Cross Benefits Limited is the insurer behind Southern Cross Travel Insurance. The company has an A-grade financial strength rating given by Standard & Poor’s, which is the equivalent of being rated 'strong'. Most travel insurers outsource the risk to a large overseas insurance company, but Southern Cross does not given its size and presence in New Zealand.

5. Does Southern Cross sell other travel insurance in New Zealand?

No, Southern Cross does not provide cover for any other insurer - to get TravelCare, you must buy it from Southern Cross directly.

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

• ​Emergency assistance is provided 24 hours/7 days a week via +64 9 359 1600
• Policyholders make a claim via the Southern Cross Travel Insurance website, although an estimated time for making an assessment is not given. 
• Most claims (except those medical-related), will normally be settled when the traveller returns to New Zealand. This means if you lose an item overseas, have money stolen, experience a flight disruption or any other misfortune that isn't medical, the standard procedure is to asses your claim when you return home.

7. What about pre-existing medical conditions?

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

8. Can I get a discount on the policy?

Yes, if you are a Southern Cross member, you automatically qualify for 5% off the total price of the policy.

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

Similar cover is offered by a range of travel insurers, including AMI, AA and 1Cover.

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

Many claims are rejected every year by travel insurers all over New Zealand. If this happens to you, 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 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.

Southern Cross Travel Insurance Pros and Cons

Pros

• Southern Cross offered the cheapest policy costs for our example trips for two 35-year-old visitors to Australia, the USA, Bali and Europe, when compared to 1Cover, AA and AMI travel insurance policies.​
• For 75-year-old visitors, the Southern Cross policies were second cheapest, coming just behind 1Cover overall. 
• There is a $0 excess option - this means you can claim without having to pay a fee.
• The benefits apply to anyone aged up to 100 years of age.
• The cover and claims are managed by Southern Cross, which means should you need to claim, you won't be shipped off to a third party insurer like most other travel insurers in New Zealand.
• Southern Cross offers 24/7 global support and a 5% discount for members.

Cons

• If you plan to ski or ride a motorbike, moped or scooter, you will need to buy an optional add-on to cover these activities. ​

Overall:

• AA 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. 
• Among the big brands, it offers generous cover and lower-than-average policy prices.
• Our extensive travel insurance comparison lists other insurers, such as Columbus Direct or TINZ, which offer lower-priced cover, and are worth considering. 

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5 Must-Know Southern Cross Travel Insurance Facts

Travel Insurance is about covering for the unpredictable and unaffordable

• 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.

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

Many travel insurers, including Southern Cross, 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.

What does 'pre-existing' actually mean?
Southern Cross defines a 'pre-existing medical condition' as any illness or injury which that person is aware of, where, in the last 3 years prior to your travel dates, you have sought, received, been recommended, or are waiting for: 

1. advice from a health professional, or
2. tests, investigations or specialist consultations, or
3. care, treatment, or medical attention including surgery, or
4. medication or a script for medication

...whether or not a medical diagnosis has been made.

So, if you've had any medical condition in this time, diagnosed or not, Southern Cross defines it as 'pre-existing'. 

Do I need to tell Southern Cross about a pre-existing condition?
Unlike other insurers, Southern Cross does not offer a list of covered/included pre-existing conditions. Instead, Southern Cross asks customers to disclose whatever pre-existing conditions they have for an assessment by their medical team. The medical team will quote separately for the pre-existing condition(s), or inform you that you cannot be covered for one or any of the disclosed conditions.
 
While Southern Cross does not require disclosure of pre-existing conditions, it makes it clear that any claims later on could be affected by anything undisclosed that it related to the issue.

What if I am undiagnosed but have a condition?
Undiagnosed conditions do not fall under pre-existing, unless a 'reasonable person should have been aware of your condition', so if you don't know you have something and get ill later, your claim should be successful.

Top Tip: To minimise any concern or limited cover, it is best to consult with Southern Cross directly if you have a pre-existing condition. 

Check our list of activities that travel insurance generally doesn’t cover, UNLESS you specifically request to add it on

• If you plan to go beyond the beaten path or do anything else considered adventurous, check that Southern Cross Travel Insurance covers it. If it doesn't, you will be uninsured if anything goes wrong. Even 
• Southern Cross​ specifically excludes professional sport, contact sport, racing, motorsports, hunting, pot-holing or caving, rodeo, microlight flying or kitesurfing, mountaineering, hiking, trekking or tramping, abseiling or outdoor rock climbing, base jumping, parachuting, paragliding, parasailing, hang gliding, bungee jumping, white water rafting, black water rafting, white water kayaking or land yachting (unless you are with an operator licensed in the relevant country). 
• If you want to ski or ride a moped, scooter or motorbike, extra cover is required (see below).
• Any scams or fraud you fall victim to, self-harm and losses from the breakdown of a family relationship, losses from unknown persons invited to your accommodation (or you visiting the accommodation of persons unknown to you), participating in any prostitution and any unlawful activity are also excluded.

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

Southern Cross​ Travel Insurance's terms and conditions make it clear - you won't be covered if you are "under the influence or effect of alcohol, solvents or drugs (other than a drug administered or prescribed by a registered medical practitioner, and taken as prescribed), including any conduct
engaged in whilst under the influence or effect of alcohol, solvents 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 Southern Cross to clarify, their response, and will update this section when we are provided with their reply.

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, Southern Cross 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. ​

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Southern Cross Travel Insurance has a bunch of exclusions meaning it will deny a claim if you don't comply - our summary helps you to understand what to be aware of...

The Southern Cross travel insurance policy document is 40+ pages so you'll be forgiven if you don't read it in detail. To minimise the risk of being caught out, we have summarised the 20+ categories of exclusions below to help you be aware of where the policy won't pay out. We have grouped these into three categories of risk, but it's important you understand them all. Without exception, Southern Cross will deny any claim relating to:

Higher chance events:

• ​Losses exacerbated by the health of a relative or business partner (who are not travelling) if that person has been hospitalised in the previous two years for a condition that was related to causing the claim, was living in a nursing home or had home care assistance, was on a waiting list, knew they needed surgery, had a drug or alcohol addiction or had a terminal illness.
• Anything relating to prohibited activities (see the full list here), snow activities and moped/motorbike without additional cover.

Medium chance events:

1. Any pre-existing medical condition
2. Bankruptcy of a travel agent, airline or any tourism service provider.
3. You break the law, or are not honest in your insurance application or claim
4. Travel booked or undertaken after a terminal illness was diagnosed
5. If you are under the influence or addicted to alcohol, solvents or drugs​ during the time of an incident
6. Consequential loss after an event, i.e. if you have an accident in your rental car and get a parking ticket while you wait for help, your parking ticket won't be covered.
7. Where you don't follow the directions or instructions given by Southern Cross Emergency Assistance in relation to an incident.
8. Loss of enjoyment which is non-financial - for example, if you get sick during a week in Fiji, you can claim medical costs but you won't be compensated for the loss of enjoyment of your holiday. 
9. Any change to your health which occurs prior to your start date of journey
10. If you intentionally or recklessly put yourself in a situation where you pose a risk to yourself and/or your baggage or personal items. For example, if you pose for photos behind a fenced-off area and have an injury, you won’t be covered.
11. Pregnant women over 20 weeks, and for anyone less than 20 weeks, the cover is for medical complications only (pregnancy-related conditions are not covered)
12. Private hospital and medical treatment if public funded services or care is available. If you are in a country with a reciprocal health agreement with New Zealand (such as Australia or the United Kingdom), Southern Cross requires that you ask for public hospital treatment first.

​Lower Chance events:

1. Private sea or air travel - for example, non-scheduled or sight-seeing flights
2. Any claim arising from damage caused by domestic pets owned by a someone related to your travel (i.e. family, people you are staying with)
3. Terrorist incidents with chemical or biological substances, or any nuclear event
4. Losses from participating in any gambling.
5. Events related to a governmental or official authority directive, restriction, prohibition, quarantine, or detention, including border closures and seizures by government authorities. For example, if you are backpacking around Africa and a border closes causing you to be delayed and miss a flight, you won't be covered. 
6. Any incidents relating to hitchhiking (either being a hitchiker or picking someone up)
7. Any claims relating to natural events which started before your start date of insurance, although exceptions are allowed in the policy document.
8. Any incident that happens outside of the period of insurance.
9. Unused prepaid costs unrelated to you or anyone named on your insurance certificate
10. Travelling to anywhere with a 'do not travel' or 'avoid non-essential travel' has been issued by the New Zealand Government Ministry of Foreign Affairs and Trade www.safetravel.govt.nz
11. Riot or civil commotion (unless you have already left New Zealand prior to the riot/civil commotion, and you promptly take steps to avoid related risks), or any incident relating to a war, invasion or civil war.
12. Working overseas – any incidents incurred during work, even volunteer work, undertaken overseas during your journey

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Southern Cross Travel Insurance Frequently Asked Questions

How many people can I include a policy?

You can include up to two adults and nine children on one policy.

Are children covered for free?

Yes - dependent children under 21 years are covered at no additional charge. To qualify, the 'children' must be:

• Your children, stepchildren, foster children, grandchildren, nieces and nephews
• Unmarried
• Under 21 years old at the start date of your insurance
• Financially dependent on the adults listed on the certificate of insurance
• Not in full-time employment

Does Southern Cross Travel Insurance cover lost, stolen or damaged luggage?

Yes - up to a maximum of $25,000 per journey. There are per-item limits, outlined below:

1. Mobile Phone (repair or replacement) - $1,500
2. Electronic equipment, video and camera equipment - $3,000 (up to a maximum of $10,000 per claim)
3. General items limit - $1,500 per item
4. Unspecified jewellery and watches - $2,500 per claim

Does Southern Cross 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. You can also increase the cover from the standard $5,000 to $10,000, $20,000 or an unlimited amount, for an additional fee. 

Can I pay to reduce my excess?

Yes - Southern Cross Travel Insurance offers excesses in $250, $100 and $0 - choosing a $0 or $100 excess means the overall policy cost increases slightly (compared to the same policy with a $250 excess).

What is the maximum length of a single trip?

The maximum time is one year (365 days)

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

General personal items valued at above $1,500 are excluded, other than cameras, laptops etc. Extra cover is available for a set fee for 'specified items', with a limit of $10,000 per item, up to a maximum for all items of $15,000 per journey. This will be of use if you want to insure high-value items, such as a diamond ring, computer equipment and clothing etc.

As an example, we received a quote of $200 to insure an item valued at $10,000 for four weeks in Europe. Standard excess amounts apply to any claim.

Am I covered if I go on a cruise?

Yes - Southern Cross Travel Insurance covers cruises automatically on its TravelCare policy. This also includes boat charters where you pay to be onboard. However, the policy must cover all of the destinations you will be visiting during your journey (i.e. where it docks and finishes). 

Am I covered for skiing and my equipment?

No - ski cover is an optional paid extra. It will cover you for medical incidents, personal item claims and everything else that arise up on the mountain, but it the list of excluded activity is extensive and strict. Even if you buy the additional cover, you won't be covered if you ski:

1. Off-piste, outside a designated commercial ski area
2. In any way that is not in accordance with any notices or regulations the commercial ski area publishes
3. Without a helmet on your head
4. In a professional capacity, racing or any timed event or competition

So, if you don't usually use a helmet, you will need to for your insurance to be valid. And you will need to ski responsibly and keep to the trails.

Am I covered if my tour company collapses?

No - this is a standard exclusion. Southern Cross specifies that there won't be any cover for any 'default or financial collapse of any service provider', meaning if your airline, transport provider, travel agent, or wholesaler, your travel insurance won't cover it. 

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

Southern Cross only sells travel insurance policies to:

1. New Zealand citizens or permanent residents
   
2. Australian citizens or permanent residents residing in New Zealand
   
3. Foreign nationals on a visa or permit which allows you access to all publicly funded health and disability services in New Zealand. The visa or work permit must be valid until after your end date of insurance.

Am I covered to ride a moped, scooter or motorbike?

A standard policy will not cover you for ​any claim related to riding a motorbike, moped or scooter. Southern Cross sells cover as an optional extra, with strict conditions. To be covered:

1. The engine cannot be larger than 200cc
2. You must wear a helmet on your head
3. Have a valid driver’s licence from the country of origin or country you are in
4. You cannot be speeding or under the influence of drugs or alcohol
5. You cannot be riding in a professional capacity, racing, competing etc

If you plan to ride a scooter, many media stories talk of New Zealanders getting into accidents in Bali and Thailand. Being uninsured is a major risk; in many places, hospital treatment won't be provided if there are no insurances of guarantees of payment.

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

TBC

Does Southern Cross Travel Insurance cover rental vehicle excess?

Yes - you are covered 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. So, if someone hits you, you hit someone or the car is involved in any type of accident or theft, you will pay the excess to the car insurer and then claim it back from Southern Cross.

How is this a benefit?

• When you rent a car, a standard excess in the thousands of dollars/euros/pounds is included.
  
• If you wish to reduce it to something much lower, or even zero, the car rental company charges an additional 'insurance' fee.
  
• This can be considerable. With this benefit from Southern Cross, you can avoid paying for 'excess protection' or 'excess reduction' insurance when you rent a car, as long as you're comfortable putting a hold on your credit card and paying the excess if you have an incident.

Where is Southern Cross Travel Insurance based?

Southern Cross Travel Insurance's head office is in Auckland.

What is the best way to buy a Southern Cross Travel Insurance policy?

Either online on the Southern Cross Travel Insurance website, or over the phone (0800 800 571, Monday to Friday). If you are insuring for pre-existing medical conditions, it is best to call to explain your situation. 

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