Travel Insurance

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​Updated 19 September 2018

What is Travel Insurance?

​Travel insurance is an insurance policy that is intended to cover medical expenses, lost luggage, flight accident and other losses incurred while travelling. Many travel insurance companies offer a range of policies; the more expensive the premium, the more extensive the coverage. 
This guide is designed to walk you through the ins and outs of travel insurance. We explain how travel insurance works, what you need to consider when buying a policy and what to watch out for. 

We conclude with our thoughts on the best travel insurance policies for travel in Australia, the Pacific Islands, Asia, Europe, North America and cruises for different types of travellers. 

If you have any tips you would like to share with fellow readers, please contact our research team.

Disclaimer: While we have taken the utmost care in putting together this guide, you use it at your own risk and we do not guarantee the accuracy of the information presented. We recommend confirming policy terms and conditions directly with any travel insurance company before purchase. 

In May 2018, the findings of this travel insurance guide appeared in Stuff.co.nz alongside commentary from our research team and the Financial Services Ombudsman - read the article here.
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Quick Guide

Our Travel Insurance Best Buys 
​Travel Insurance - 15 Need to Knows

Price Busting: Big Insurance Brand Travel Insurance, Travel Agent Travel Insurance and Bank Travel Insurance - avoid paying up to 100% more for similar policies

​Making a Claim on Your Travel Insurance Policy
Introduction: The 3 Golden Rules of Travel Insurance
  1. You don't need to buy it from your bank - our research showed banks like Westpac and BNZ can charge up to 100% more for like-for-like policies
  2. You don't need to buy it from well-known brands - our research showed State and Tower can be up to 100% more expensive than other providers who can often provide better cover
  3. Buy it when you book your tickets so you don't forget (and be sure that the policy includes cancellation cover)
Why do I need travel insurance?
You need travel insurance for many reasons, but most importantly you need it as it can help cover any medical expenses you incur overseas. Travel insurance also can cover you for accidental damage, lost or stolen items. Some insurance policies also cover delayed flights and cancellation. MoneyHub has put together this guide to help you maximise the benefits while minimising the cost of travel insurance wherever you are heading off to. 
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What type of travel insurance is the best for my holiday?
Finding the right travel insurance involves knowing how long you will be away, how many people will be travelling together, where you are going and what you will be doing. Are you going solo (individual), travelling as a couple, a family, over 65 years old or part of a group? Your answer will determine what you pay for travel insurance.
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What does travel insurance usually cover?
Standard travel insurance policies usually provide cover for the following:
  • Cancellation and travel delays: This includes pre-departure cancellations due to illness, delayed flights and delayed luggage
  • Medical expenses: The costs of visiting a doctor and/or having medical treatment, and all related medicines
  • Personal liability: This is to cover damage you cause to a person and/or property
  • Emergency evacuation: If you need medical treatment or aftercare back in New Zealand, this is the cost of flying you home. 
  • Baggage and personal belongings: This covers you if your bags or items are lost, stolen or damaged. 

Expert tip: When purchasing a policy, check that the policy covers more than just medical - the difference in cost between policies NOT covering baggage and travel cancellation/delays and those that DO cover them is often very little. 
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Do I need travel insurance when visiting Australia?
You may have heard that medical costs are covered if you need treatment in Australia, but the reality is that only basic subsidised emergency care is included. Also, there are a lot of costs if you need medical care that won't be covered - medicines, unused hotel nights and re-booked flights back to New Zealand are just some of these items. Beyond medical costs, travel insurance will cover lost, stolen or damaged property as well as a number of other unfortunate events so even if you don't get sick you still could experience some other inconvenience. 

It's our view that travel insurance to Australia is affordable, and to protect yourself from unknown costs and stress we recommend getting it. Our researchers found 5-day policies for around $20 which won't break the bank and provide a lot of upsides should you need to claim.

Expert tip: When purchasing a policy, check that the medical cover goes beyond standard reciprocal agreement between Australia and New Zealand and includes private care. Otherwise you run a risk of joining a waiting list in Australia for non-urgent treatment (just as you would in New Zealand) which makes for a miserable holiday.
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Do I need travel insurance if I'm on holiday in the Pacific Islands?
The answer is yes, and for the same reasons you would buy travel insurance for a visit to Australia. The Pacific Islands offers even less protection to visitors by way of emergency care, and if an illness is serious you may need to be emergency evacuated back to New Zealand. Remember, the medical technology and expertise you find in Auckland probably won't be the same in Tonga or Niue, so small problems can quickly turn into big ones. 

Comprehensive travel insurance is the best solution to eliminate the costs and stress associated with an accident or emergency when holidaying in any of the Pacific Islands. 
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What information do I need to get travel insurance quotes?
You can speed up the process and focus on what matters by making a note of:
  • Your travel dates (include the day you arrive back into New Zealand when you price policies)
  • The ages of anyone travelling with you, and any pre-existing medical conditions they may have
  • A list of valuables you plan to bring, such as cameras, laptops and other high-value items. Some policies may require additional cover fees for them to be included.  
  • The amount you are prepared to pay for a claim - this is called the "excess". The higher the excess, the cheaper the policy. But if you don't want to pay, for example, a $250 excess for a claim worth $400, consider paying a little more upfront to lower the excess to perhaps a more manageable $100. 
What should I consider when shopping for a travel insurance policy?
The travel insurance policy you will need depends on what you are doing. A week in Australia is fairly standard and many policies offer cover which includes all the important things. However, if you're skiing for a week in Whistler or heading off to backpack around Asia for six months, you'll need a different travel insurance policy.  

The most suitable policy has the right level of cover and inclusions, such as lost baggage, theft, travel cancellation, medical treatment, emergency repatriation and public liability cover. If you have something specific you need to be insured for, you should be able to add this to the policy for a small fee. 
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Travel Insurance - 15 Need to Knows

  • ​Travel insurance for New Zealanders can be 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 could be costly. If you have booked a trip but not bought travel insurance, buy it now – it is not as expensive as you may think 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 or most well-known 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. 
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Travel Insurance is about covering the unpredictable

Many 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 for a family event or pre-trip illness

Many 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 too early to insure your trip and get refunded if you are too ill to travel. 
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NEVER assume all policies are the same

The 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:
  1. Am I checking in bags, or travelling only with hand luggage?
  2. Am I taking expensive electronics (camera, laptop, phone etc)?
  3. Am I partaking in adventurous sports, including skiing?
  4. Am I taking a lot of cash?

​Answering these questions will help you pick the right policy. In our Best Travel Insurance section below, we pick providers who meet our minimum inclusion criteria, protecting you for things like pre-travel cancellation and cover what you would expect travel insurance to include. These two providers also have positive customer feedback and are consistent in paying out on claims, even in very extraordinary cases.
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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 covered

Many credit cards include “free” travel insurance as part of their annual fee. If you have one of these cards, check out exactly what it covers and who exactly is protected, as well as how to activate the insurance cover. 

If you are 65+ or there is a 65+-year-old travelling with you, separate policies may often be cheaper

Insurers 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, rather than combining everyone together in one policy.
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Get quotes for individual policies and family policies, as one policy is often cheaper than two

It's likely that covering your partner and/or family will be cheaper with one policy than buying individual cover for each person, but not always. In some situations, separate policies may be cheaper. This is usually the case when an individual:
  • is 65+
  • Has a medical condition
  • Has a history of making travel insurance claims
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Be completely honest when buying a policy and ALWAYS declare ALL medical conditions!

Travel insurers in New Zealand have a good reputation for 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, it is also important to inform them if you are pregnant.
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One drink can prevent a claim from being paid

The terms and conditions of a travel insurance policy make the rules around alcohol clear - if you are "under the influence" during an incident, your claim will be invalid. This means that if you go out clubbing in Barcelona and lose your bag while intoxicated, your policy 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.

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 and hire a scooter, go off-piste skiing or do anything else considered adventurous, check your policy covers it. Often it won't, which means you are uninsured if anything goes wrong. 
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A MoneyHub reader emailed us a horror story: “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 just taking out "medical only" travel insurance - the price difference is never worth it

Some insurers are offering "medical only" policies, but for 10% more you can get a fully comprehensive policy which includes everything from delays to cancellations and theft. The price difference may work out to be $10 or $20 but it's worth it if or when something does happen. 
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Read the reviews of your insurer before you purchase

​Facebook pages are a good place to see how responsive the company is. Are there are a 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. 

Take advantage of travel insurance comparison sites

New Zealand websites such as “comparetravelinsurance.co.nz” and “trademeinsurance.co.nz” don’t compare every travel insurance company but they do a fairly decent job. But keep in mind both of these sites are not "independent" - one 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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Off 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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Heading off to live overseas? You'll need a specialist travel insurance policy

Long-term cover usually means travel insurance policies that last around 12 months, with the option to extend. What you will pay varies greatly, even if the cover is similar. Shopping around and comparing the market online is the best way to save the most and get the best cover. 

Travel Insurance Best Buys

What we looked for:
  • Comprehensive cover for more than just medical - we analysed in detail, beyond the cheap policies offering nothing but accident cover. We looked for reasonable levels of medical cover (i.e. $5 million or more), lost or stolen personal items and travel delays.
  • Low excess - $100 excess policies beat $200+ excess policies
  • Zero excess on essentials - some policies don't charge an excess on delays and hospital cash saving travellers money from day one
  • Payout history - we cross-checked online to get an indication of any issues with claim payouts from existing customers
  • Value for money - the selection below presents what we consider the best value for money and would personally purchase if embarking on the travel specified.  
  • User-friendly websites - we valued insurers who presented their policies, payout limits and other essential information clearly for easy and quick comparison.

Our Sample
To obtain our quote data and recommended value-for-money policies, we used a number of different ages as specified below. In most cases, travel insurance quotes rarely move "within the range", so if you and your children are of a different age to what we used, the quotes will still be similar to what we have given below,  the age of school-aged children is not a significant factor for policy prices.

Our travellers: 
  • Individuals - one 30-yearold
  • Couples - two 35-year-olds
  • Family - two 35-year-olds and two children aged 8 and 10
  • ​65+ - one ​70-year-old
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Underwriters
  • All travel insurance sold in New Zealand by brands such as State, 1Cover and TINZ is underwritten by major insurers. ​This means the policy has strength and you are not relying on the solvency of your provider to pay out any claim.
  • You'll see statements that say the policy is underwritten by Allianz, QBE, Chubb, Lloyds, Southern Cross and Tower for example, and we have noted the underwriter with every best buy. 
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Best Australia & Pacific Travel Insurance

7 days in Australia
  • Individuals - Comprehensive from TINZ ($25, underwritten by Lloyd's) offers complete family protection with a $100 excess.  
  • Couples - Premier from NZ Travel Insurance ($52, underwritten by Allianz) protects couples with a $100 excess on all claims (for $6 more, the excess reduces to $0)
  • Family - Comprehensive from TINZ ($53, underwritten by Lloyd's) offers complete family protection with a $100 excess. 
  • ​​65+ ​- Premier from NZ Travel Insurance ($36, underwritten by Allianz) protects 65+ with a $100 excess on all claims (for $7 more, the excess reduces to $0)

7 days in Fiji
  • Individuals - Comprehensive from TINZ ($35, underwritten by Lloyd's) offers complete protection for individuals with a $100 excess. 
  • Couples - Comprehensive from TINZ ($63, underwritten by Lloyd's) offers complete protection for couples with a $100 excess 
  • Family - Comprehensive from TINZ ($63, underwritten by Lloyd's) offers complete family protection with a $100 excess. 
  • ​65+ ​- Premier from NZ Travel Insurance ($72, underwritten by Allianz) protects 65+ with a $100 excess on all claims (for $9 more, the excess reduces to $0)

Best Asia Travel Insurance

14 days in Thailand
  • Individuals - Standard from Columbus Direct ($72, underwritten by Lloyd's) offers complete protection for individuals with a $0 excess for any travel delay or delayed luggage claim, with a $150 excess for everything else.
  • Couples - Comprehensive from TINZ ($131, underwritten by Lloyd's) offers complete protection for couples with a $100 excess or Standard from Columbus Direct ($136, underwritten by Lloyd's) which also offers complete protection for couples with a $0 excess for any travel delay or delayed luggage claim, with a $150 excess for everything else.
  • Family - Comprehensive from TINZ ($131, underwritten by Lloyd's) offers complete family protection with a $100 excess. 
  • ​65+ - ​Premier from NZ Travel Insurance ($110, underwritten by Allianz) protects 65+ with a $100 excess on all claims (for $16 more, the excess reduces to $0)

14 days in Japan
  • Individuals - Standard from Columbus Direct ($72, underwritten by Lloyd's) offers complete protection for individuals with a $0 excess for any travel delay or delayed luggage claim, with a $150 excess for everything else.
  • Couples - Standard from Columbus Direct ($136, underwritten by Lloyd's) offers complete protection for couples with a $0 excess for any travel delay or delayed luggage claim, with a $150 excess for everything else.
  • Family - Standard from Columbus Direct ($136, underwritten by Lloyd's) offers complete family protection with a $0 excess for any travel delay or delayed luggage claim, with a $150 excess for everything else.
  • ​65+ - Premier from NZ Travel Insurance ($161, underwritten by Allianz) protects 65+ with a $100 excess on all claims (for $26 more, the excess reduces to $0)

Best Europe & North America Travel Insurance

4 weeks in Europe
  • Individuals - Standard from Columbus Direct ($125, underwritten by Lloyd's) which has a $0 excess for any travel delay or delayed luggage claim and a $150 excess for everything else or Comprehensive from TINZ ($120, underwritten by Lloyd's) with a $100 excess 
  • Couples - Comprehensive from TINZ ($225, underwritten by Lloyd's) offers complete protection for couples with a $100 excess
  • Family - Comprehensive from TINZ ($225, underwritten by Lloyd's) offers complete family protection for families with a $100 excess
  • ​65+ - Premier from NZ Travel Insurance ($238, underwritten by Allianz) protects 65+ with a $100 excess on all claims (for $34 more, the excess reduces to $0)

2 weeks in the USA

Best Cruise Travel Insurance

14 day Pacific and Australia Cruise
  • Individuals - Premier  from Columbus Direct ($60, underwritten by Lloyd's) which has a $0 excess for any travel delay or delayed luggage claim and a $150 excess for everything else
  • Couples - Premier from Columbus Direct ($115, underwritten by Lloyd's) which has a $0 excess for any travel delay or delayed luggage claim and a $100 excess for everything else
  • Family -  Premier from Columbus Direct ($115, underwritten by Lloyd's) which has a $0 excess for any travel delay or delayed luggage claim and a $100 excess for everything else
  • ​65+ - Essentials from TINZ ($123, underwritten by Lloyd's) offers complete protection for couples with a $100 excess

Price Busting: Big Insurance Brand Travel Insurance

We compared our Best Buys (above) with well-known brands such as Southern Cross, AA Travel and Air New Zealand for couples travel insurance for trips to Australia, the USA and Europe.  

Our findings:
  • Our best buys, which offer low excess and generous medical and personal item cover, were priced around half the price when compared to major brands like State, AMI, AA Travel, Cover More and Air New Zealand.

Recap - Our Best Buys for Couples: ​

Couples Travel Insurance

Big Insurance Brand Travel Insurance Quotes for 3 Example Holidays

Brand/Insurer
1 Week Australia
2 Weeks USA
4 Weeks Europe
Southern Cross
$​66.51
$​296.40
$249.69
​1 Cover
$72.28
$​273.55
$​253.81
Cigna
$65.87
$​349.78
$​291.55
Tower
$​57.24
$​275.53
$​394.97
AMI
$76.00*
$354.00
$​434.00
State
$76.00*
$354.00
$​434.00
AA Travel
$76.00
$416.00
$480.00
Cover More
$90.00
$420.00
$516.00
Air New Zealand
$102.00
$466.00
$526.00
Quotes obtained
Southern Cross Travel Insurance - $100 Excess, TravelCare Policy 
1 Cover Travel Insurance - $200 Excess, Comprehensive Policy
Cigna Travel Insurance - $100 Excess, Standard Policy
*Tower Travel Insurance - $100 Excess, NB: Australia - Family Plan A - medical cover limited to $200,000; Europe/USA - Plan C - unlimited)
AMI Travel Insurance - $100 Excess, International Plan 
State Travel Insurance - $100 Excess, International Plan
AA Travel Insurance - $200 Excess, Comprehensive Policy, NB: Prices are taken before 10% AA Member discount
​Cover More Travel Insurance - $100 excess, Options Plan
Air New Zealand Travel Insurance - $100 excess, International Plan
Note: Where "Europe" isn't an option, we have selected "France" in its place. 

Price Busting: Travel Agent Travel Insurance

We compared our Best Buys (above) with well travel agents such as House of Travel, Mondo and STA Travel. We excluded Flight Centre as they did not provide online quotes or offer policy information without engaging a travel agent.  We priced travel insurance for couples travelling on trips to Australia, the USC and Europe. 

Our findings:
  • Our best buys, which offer low excess and generous medical and personal item cover, were around half the price of that charged by travel agents for cover in Australia.
  • For the USA and Europe, our best buys were around 30% cheaper than the travel agent travel insurance for very similar policies
Brand
1 Week Australia
2 Weeks USA
4 Weeks Europe
House of Travel
$100.00
$372.00
$486.00
Mondo
$102.60
$298.30
$336.30
STA Travel
$88.00
$318.00
$300.00
Quotes obtained:
House of Travel Travel Insurance - $100 Excess, Comprehensive policy
Mondo Travel Insurance - $100 Excess, Basic policy
STA Travel Insurance - $250 Excess, Comprehensive policy
​Note: Where "Europe" isn't an option, we have selected "France" in its place. 

Price Busting: Bank Travel Insurance

We compared our Best Buys (above) with the banks offering travel insurance, pricing policies for couples travelling on trips to Australia, the USA and Europe. 

Our findings:
  • Westpac was the most price-competitive bank across the board, with low priced cover for a week in Australia.
  • Banks policies were still at least 25% more expensive than our best buys, and in some cases (i.e. ANZ and AMP) the policies offered were twice as much for similar cover to the USA and Europe.
Brand
1 Week Australia
2 Weeks USA
4 Weeks Europe
Westpac
$60.00
$276.00
$342.00
BNZ
$84.29
$270.09
$350.71
TSB Bank
$81.96
$277.80
$360.98
ANZ
$92.00
$460.00
$524.00
AMP
$88.00
$476.00
$538.00
Quotes obtained:
Westpac Travel Insurance - $100 Excess, TravelPlus policy
BNZ Travel Insurance - $100 Excess, Standard policy
TSB Bank Travel Insurance - $100 Excess, Standard policy
ANZ Travel Insurance - $100 Excess, Travel Protector policy
AMP Travel Insurance - $100 Excess, Comprehensive policy
Note: Where "Europe" isn't an option, we have selected "France" in its place. 

Making a Travel Insurance Claim

If something has gone wrong, it's a straightforward process to claim on your travel insurance policy. You'll need to know the excess fee on your policy and be prepared to answer any follow-up questions the claim assessor asks. 

If you do need to claim, follow our 5 step process:

1. Contact your insurer immediately (or as soon as you can) to make a claim
You'll have all the information and can gather more details if requested - do not wait until you get home to make claims. The quicker you submit a claim, the quicker it will be assessed and paid out. 

2. If you are planning to claim for non-urgent medical treatment, get your insurer to accept it BEFORE you go any further
Call your insurer and talk about the medical treatment and if it is covered by your policy. For example, if your bags are lost and you have essential medicines inside them, make sure they cover this and make a note of who you spoke with so there is less chance of a rejected claim later. If it's an emergency, don't delay any treatment. 

3. If you've had something stolen, inform the police
The more evidence you have of a loss, the better your chance of you have of being successful in your claim. Don't hesitate to report the theft and get the police report and/or crime reference number details to include in your claim. 

4. Keep all of your receipts
Whatever type of problem you experience, if you need to buy anything make sure you keep hold of all the receipts. This includes food and drinks for delayed flights, new clothes for delayed bags and so on. A credit card statement may suffice, but actual itemised receipts make a claim go a lot smoother. 

5. If your claim is rejected, appeal and complain
Facebook is full of complaints from travel insurance policyholders who have been rejected. If you have been rejected and you think it's unfair, appeal it. Jump on the phone and explain why your claim meets the T&Cs of the policy you bought. If they don't agree, you can lodge a complaint with the Insurance & Financial Services Ombudsman Scheme which resolves disagreements between customers and their insurers. Their free-of-charge service will make the final decision about your claim and order the insurer to pay out if they find in your favour.