Travel Insurance for New Zealanders

General travel insurance questions

1. What is travel insurance?
   

   Travel insurance is a specific type of insurance that helps cover a number of costs and disruptions associated with travelling both domestically and overseas. Levels of cover differ per policy, however, travel insurance typically protects against trip cancellation, delays, lost luggage and personal belongings, medical expenses and repatriation, and personal liability.

   Most travel insurance providers offer single or multi-trip policies, which can cover multiple countries within a specific timeframe. The destination, length of trip, specific activity add-ons and pre-existing medical conditions all help determine the cost of a travel insurance policy. Policies can be purchased at the time of booking a trip up until the time a traveller leaves their home.

2. How much does travel insurance cost?
   

   Travel insurance varies for individual travellers based on the options selected by them, so prices vary from person-to-person. The cost of a travel insurance policy is determined by:

   • Age of traveller/s: the older the traveller, the higher the policy cost may be.
   • Number of travellers included in the policy: a higher number of travellers creates more variables, therefore increasing risk.
   • Length of trip/s: a single trip policy is generally around half the amount of a multi-trip policy, making the latter more cost effective for frequent travellers, while shorter trips often pose less risk of medical incidents and travel interruptions, resulting in lower costs.
   • Destination/s: costs vary greatly depending on the countries and regions covered by a policy. For example, regions such as Europe will often be cheaper than trips to the USA because of the high cost of medical treatment in America.
   • Level of coverage: travellers can opt for cheaper travel insurance as well as comprehensive, more expensive plans to cater to their different customer.
   • Existing medical conditions: a customer’s policy will increase if their medical history shows an increased risk of possible medical treatment requirements while travelling.

   While a cheaper policy cost upfront may seem appealing, always read the Policy Wording to ensure your needs are adequately covered should an incident occur.

3. When is the best time to purchase travel insurance?
   

   Purchasing a policy soon after a trip is booked has a number of benefits and increases a traveller’s protection.

   When purchased ahead of time, a traveller can cancel their travel insurance policy for a full refund within the cooling off period. If the policy is purchased before the customer leaves their home to depart for their trip, claims for rearrangements and cancellations caused by unforeseen circumstances can also be made.

   By considering travel insurance as an essential part of booking a holiday - not an afterthought when at the airport - travellers are likely to be covered should an incident arise before take-off.