Compare Cheap Holiday and Travel Insurance (2024)

Our Expected Relaunch Date is August 2023 - Policy Details and Comparisons are Currently Being Finalised

Updated 27 July 2023 (preparing for relaunch)

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.

Introduction: The Golden Rules of Travel Insurance

You don't need to buy it from your bank-our researchshowed banks likeWestpacandBNZcan charge up to double for like-for-like policies from well known travel insurers.
You don't need tobuy it from well-known brands-our researchshowedStateand AMI can charge up to double compared to other challenger insurers whocan often provide the same or even better cover with the same or equally strong underwriters.
Buy itwhen you book your tickets so you don't forget(and be sure that the policy includes cancellation cover).
Credit card travel insurance can leave you without full cover - while it's free as part of your annual card fee, many policies have exclusions and caps on travel days. If you're going to use it, make sure you read the policy from start to finish to avoid any nasty surprises.

Our Guide Covers:

Travel Insurance Need to Know Facts
Understanding the Meaning of the Terms in a Travel Insurance Policy
The Best Travel Insurance Policies Compared Benefit by Benefit

- 7 days from $X
Asia Travel Insurance- 14 days from $X
Europe Travel Insurance - 4 weeks from $X
North America Travel Insurance- 2 weeks from $X
Cruise Travel Insurance- 14 days from $X

Price Busting: Big Insurance Brand Travel Insurance,Travel Agent Travel Insuranceand Bank Travel Insurance - avoid paying up to 100% more for similar policies
Credit Card Travel Insurance vs Buying a Standalone Policy
Making a Claim on Your Travel Insurance Policy
Travel Insurance Frequently Asked Questions

Know this first:

We have published this guide to explain 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 have shortlisted the best travel insurance policies for travel in Australia, the Pacific Islands, Asia, Europe, North America and cruises.

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.

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 toperhaps a more manageable $100.

Do travel insurance policies cover COVID-19 illness-related costs?

In general, most travel insurers do not provide full coverage for events related to COVID-19. However, some limited coverage may still be available:

For example, some insurers may cover medical expenses if you are diagnosed with COVID-19 while on your journey or costs to change your travel arrangements if you are diagnosed with COVID-19 before you leave and your journey is cancelled or amended.
The coverage and specific events may vary depending on the policy and the insurer. Therefore, it's essential to carefully review your travel insurance policy's fine print to understand the extent of coverage for events related to COVID-19.
Any unvaccinated policyholder will not be specifically covered for any events related to Covid-19 under their policy, but will be covered for everything else in their policy unless specifically excluded upfront.

We expect to see COVID-related queries and cover diminish as we approach 2024 and will update our guide and comparison data accordingly.

Travel Insurance Need-to-Know Facts

Travel insurance for New Zealanderscan beexpensive, 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 per 2019 research, taking a risk could be costly. If you have booked a trip but not bought travel insurance, we suggest strongly considering it. Policies are not as expensive as you may think and the peace of mind and full protection is worth the expense.

Our View: We don’t believe Travel Insurance is about picking the lowest price nor going with a well-known brand without properly comparing. Our list of facts below is published to help you make a fully-informed decision and get the most suitable cover without overpaying.

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.

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.

Don't 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:

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

Answering these questions will help you pick the right policy. In our Best Travel Insurancesection 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.

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, rental car excess charges and cancellation. If you want peace of mind and protection for valuables, buying travel insurance for a New Zealand trip is a popular option.

MoneyHub user Zac writes:
"One of the main benefits of domestic travel insurance is rental car excess. For example - as an NZ resident, you rent a car for a weekend. Most car insurers will charge a rental vehicle excess fee, usually around $20 a day, to bring the excess down from $2,000 to $0 should you have an accident. Often, domestic travel insurance covers car rental excesses and is cheaper (around $10/day) and more comprehensive than what is sold by the car rental company. The only drawback is that if you have an accident, you'll need to pay the car insurance excess directly and claim on your insurance policy later".

Check with your credit card provider to see if you are already covered

Many Platinum and Gold-branded 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. You can find the policy online or contact your card issuer.

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 given the medical costs they can often incur. If you are buying for a group, the price of the policy will be higher if you have one or more older travellers on the policy. 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.

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

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 big problem 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 as this can affect the cover offered.

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 Bali and lose your bag while intoxicated, your policy won't cover you.

It’s important to have common sense when it comes to alcoholand 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. Temptation is all around, but travel insurers won't cover when you've breached the terms of the 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.

A MoneyHub user (who wishes to remain anonymous) shares a 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”.

Avoid just taking out "medical only" travel insurance - the price difference is rarely 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.

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.

Travel insurance comparison sites don't often include more than 3-4 insurers which makes incomplete

New Zealand websites such as “comparetravelinsurance.co.nz” don’t compare every travel insurance company, but instead sell on behalf of a handful.

Our process is different and with sample pricing we aim to be as complete as possible. We also encourage everyone reading this guide to source multiple quotes to get the best price and cover.

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 ourbest Cruise travel insurance picksbelow.

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.

Understanding the Meaning of the Terms in a Travel Insurance Policy

Travel insurance policies are made up of terms, conditions and fine print. We've explained the key terms and inclusions to help you understand what's important in a typical insurance policy.

Important:The coverage amount varies based on the policy selected, and an excess payment applies to most claims. This can be $0 (if you select it) or as much as $500+ if you choose a high-excess policy. For example, most travel insurance policy excesses will be $100, $200 or $250, but some benefits won't have benefits.

Medical and Dental Expenses

What it means:This coverage provides unlimited financial protection for hospital, medical, surgical, nursing, ambulance, and emergency dental expenses incurred overseas due to sickness or injury. This is arguably the most important benefit of travel insurance, and if disaster strikes and you get sick or injured, you'll be fully looked after until you recover. All significant claims on travel insurance policies concern medical expenses.
Cover preference:The best policies will have unlimited medical coverage.

Additional Expenses

What it means:This coverage provides financial protection for additional accommodation and transportation expenses resulting from unexpected events such as sickness, natural disasters, severe weather, loss of travel documents, and strikes. It's useful when you incur out-of-pocket expenses due to things not going to plan.
Cover preference:The best policies will have unlimited additional expense coverage; the reality is that, in practice, you'll be able to claim for any costs that cause your trip to be disrupted in a significant way.

Cancellation or Amendment Costs

What it means:This coverage provides financial protection for rearranging or cancelling your trip due to unforeseen circ*mstances outside your control, such as illness, accidents, or extreme weather conditions.
Cover preference:The best policies will have generous amendment/cancellation costs cover, for example, $X

Luggage and Travel Documents

What it means:This coverage protects lost, stolen, or damaged luggage and personal items. There are limits to the coverage amount for certain items, such as cameras, laptops, and other items, and a maximum amount payable per item.
Cover preference:The best policies will cover $3,000 or more per item rather than a $500 or $750 cap per item, which can leave some people out of pocket when the value exceeds the lower limits.

Delayed Luggage Allowance

What it means:This coverage provides financial protection for essential emergency items of clothing and toiletries purchased when a transport provider delays your luggage for more than 6-24 hours (depending on the policy).
Cover preference: INSERT

Money

What it means:This coverage provides financial protection for money accidentally lost or stolen from your person.
Cover preference:A decent amount; around $250 to $500 is reasonable. Post-COVID-19, fewer people are carrying cash as cards are widely accepted. However, anyone carrying perhaps 200 euros in cash and having their wallet stolen will benefit from cover that's $300+, and these claims are not uncommon.

Rental Car Insurance Excess

What it means:This coverage provides financial protection for the excess payment you become liable to pay due to damage to, or theft of, a rental car. Many rental car companies encourage you to 'buy out the excess' at a surcharge per day, which means you'll pay nothing if your rental car is damaged. However, the costs of buying out an excess can be $30 or even $50+ per day on top of the rental costs. For this reason, a travel insurance policy that takes care of the excess is favourable to avoid the upfront 'buyout' costs. However, you'd need to charge the repairs/excess fee to your card and claim from the insurer. Our guide to rental cars has more details.
Cover preference:At least $4,000. Most car rental excesses will be at least 2,000 Euros, USD$2,000 or £1,500 when you're overseas. If something bad happens to your car, you need cover to ensure there's no shortfall between the excess you've paid to the car rental company and what you get back from the insurer.
MoneyHub Founder Christopher Walsh explains Rental Car Excesses in this video - LINK

Travel Delay

What it means:This coverage provides financial protection for additional accommodation expenses if your scheduled transport is delayed for more than 6 hours. This usually benefits people who find their flights delayed or cancelled and need to book a hotel and pay for meals.
Cover preference:Per event, e.g. delay, an amount of $1,000 is reasonable, given delays don't last that long.

Resumption of Journey

What it means:This coverage provides financial protection for the cost of returning overseas if you have to return to New Zealand early due to the ill health of a relative or business partner in New Zealand.
Cover preference:The costs of resuming travel can be high -the best cover will be for at least $50,000.

Missed Connection

What it means:This coverage provides financial protection for the cost of alternate public transport services to catch up on your planned itinerary if you miss a connection due to unforeseen circ*mstances outside your control.
Cover preference: INSERT

Special Events

What it means:This coverage provides financial protection for costs due to unforeseeable circ*mstances outside your control that result in you being unable to arrive in time to attend a special event, such as a wedding, funeral, conference, concert, music festival, or sporting event.
Cover preference: INSERT

Loss of Income Coverage

What it means:This coverage provides financial protection if you cannot return to your work in New Zealand due to an injury sustained during your journey.
Cover preference:A benefit of $4,500, up to $500 per month, is reasonable, as it provides adequate protection for potential loss of income while you recover.

Disability Coverage

What it means:This coverage provides financial protection for an injury that causes permanent total loss of sight in one or both eyes or the permanent loss of use of one or more limbs within 12 months of the date of the accident.
Cover preference:Travel insurers seldom offer generous disability coverage, as the policies are not designed to offer income protection (LINK) or permanent disability (LINK). For this reason, a cash payout of $5,000 or $10,000 is reasonable.

Accidental Death Coverage

What it means:This coverage provides financial protection to your estate if you die within 12 months from an injury that occurred during your trip.
Cover preference:Travel insurance is not designed to act as a life insurance policy (LINK), so the benefits paid for accidental death are usually $5,000 to $10,000.

Legal Expenses Coverage

What it means:This coverage provides financial protection for your reasonable legal expenses if you are falsely arrested or wrongfully detained by any government or foreign power. However, it won't cover legal expenses if you commit a crime (such as driving over an alcohol limit) or anything else.
Cover preference:A coverage limit that is adequate to cover reasonable legal expenses is reasonable.

Personal Liability Coverage

What it means: This coverage provides personal liability cover if your negligent act or omission during the journey causes bodily injury or damage to the property of other persons, and you are legally liable to pay compensation.
Cover preference:Travel insurers are often generous with their benefits, knowing it's rarely claimed. A limit of $2,500,000 is reasonable should, in rare cases, you need to claim.

The Best Travel Insurance Policies Compared Benefit by Benefit

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 - Excesses vary, but we're pleased to see many insurers offer $100 and $150 excesses without hiking the policy price.
Zero excess on essentials - some policies don't charge an excess on certain events - delays and hospital cash being some examples, which means you can claim without being out of pocket for the excess.
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 onthe travel specified.
User-friendly websites - we valued insurers who presented their policies, payout limits and other essential informationclearly 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 givenbelow, the age of school-aged children is not a significant factor for policy prices.

Our travellers:

Individuals - one 25-year-old
Couples - two 35-year-olds
Family -two 35-year-olds and two children aged 8 and 10
65 year old couple - two 65 year olds
75 year old couple - two 75 year olds

Underwriters:

Most travel insurance sold in New Zealand by brands such as State, AA, 1Cover and House of Travel 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 byAllianz, QBE, Chubb, Lloyds, Southern Cross and Tower for example, and we have noted the underwriter with every best buy.

Best Australia & Pacific Travel Insurance

7 days in Australia

Individuals - one 25-year-old
Couples - two 35-year-olds
Family -two 35-year-olds and two children aged 8 and 10
65 year old couple - two 65 year olds
75 year old couple - two 75 year olds

7 days in Fiji

Individuals - one 25-year-old
Couples - two 35-year-olds
Family -two 35-year-olds and two children aged 8 and 10
65 year old couple - two 65 year olds
75 year old couple - two 75 year olds

Best Asia Travel Insurance

14 days in Bali (Indonesia)

Individuals - one 25-year-old
Couples - two 35-year-olds
Family -two 35-year-olds and two children aged 8 and 10
65 year old couple - two 65 year olds
75 year old couple - two 75 year olds

14 days in Japan

Individuals - one 25-year-old
Couples - two 35-year-olds
Family -two 35-year-olds and two children aged 8 and 10
65 year old couple - two 65 year olds
75 year old couple - two 75 year olds

Best Europe Travel Insurance

4 weeks in Europe

Individuals - one 25-year-old
Couples - two 35-year-olds
Family -two 35-year-olds and two children aged 8 and 10
65 year old couple - two 65 year olds
75 year old couple - two 75 year olds

Best North America Travel Insurance

2 weeks in the USA

Individuals - one 25-year-old
Couples - two 35-year-olds
Family -two 35-year-olds and two children aged 8 and 10
65 year old couple - two 65 year olds
75 year old couple - two 75 year olds

2 weeks in Mexico

Individuals - one 25-year-old
Couples - two 35-year-olds
Family -two 35-year-olds and two children aged 8 and 10
65 year old couple - two 65 year olds
75 year old couple - two 75 year olds

Best Cruise Travel Insurance

14 day Pacific and Australia Cruise

Individuals - one 25-year-old
Couples - two 35-year-olds
Family -two 35-year-olds and two children aged 8 and 10
65 year old couple - two 65 year olds
75 year old couple - two 75 year olds

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 offerlow excess and generous medical and personal item cover, were priced aroundhalf the price when compared to major brands like State, AMI, AA Travel, Cover More and Air New Zealand.

Recap - Our Best Buys for Couples:

1 Week Australia -
2 Weeks USA -
4 Weeks Europe -

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 CoverTravel 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 offerlow 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.

Credit Card Travel Insurance vs Buying a Standalone Policy

Credit card travel insurancecan be a convenient (and free) option to insure a trip. However, it's important to note that the coverage offered may have limitations, such ascaps on the number of travel days,exclusionsfor certaintypes of activitiesordestinations,and no coverage for certain travel-disrupting events. In addition, the coverage may only apply if you havespent enough on your credit card to activate the insurance.

For these reasons, some cardholders of platinum and gold bank-issued credit cards decide to purchase a standalone travel insurance policy. By doing so, the benefits aremore comprehensive coverageand theflexibilityto choose benefits that best protect your trip. A standalone policy can cover many risks, including medical expenses, trip cancellations, lost or stolen luggage, and emergency evacuations. While it may be annoying to pay for something you get for free, credit card travel insurance policy benefits vary widely.

Know This:If you're considering relying on credit card travel insurance, it's essential toreview the terms and conditionsof the policy andunderstand any limitations or exclusionsthat may apply.

However, purchasing a standalone travel insurance policy may offer more peace of mind and protection if you plana longer or more complex trip. However, if you're taking a shorter trip and the coverage offered by your credit card is sufficient, it may make more sense to rely on that coverage.

Before relying on credit card travel insurance, we suggest considering the following potential limitations:

Coverage Limits:Most credit card travel insurance policies have caps on coverage. What's offered will vary depending on the specific card and policy; reviewing the policy details is important to understand the limits and whether they're realistic for your plans.
Duration of Coverage:Credit card travel insurance policies may only cover trips up to a certain number of days, which may not be sufficient for longer trips.
Pre-Existing Medical Conditions:Credit card travel insurance policies may exclude coverage for pre-existing medical conditions, so reviewing the policy details is essential if you or someone travelling with you would fall into this category.
Activation of Coverage:To activate coverage, you may need to pay for all or a portion of your travel expenses with the credit card that offers the insurance. This may be paying for half of the trip, the flights or something else. If you don't qualify, the policy won't be valid.
Coverage for Travel Companions:Some credit card travel insurance policies may provide coverage for your travel companions, while others may not. If you have a group, then it's unlikely you'll be covered.
Coverage for Adventure Sports:Credit card travel insurance policies may exclude coverage for adventure sports and high-risk activities, but in some cases, you may pay to add this. Whether this is cost-effective depends on the credit card's insurer and your plans.
Coverage for Lost or Stolen Items:Credit card travel insurance policies may include coverage for lost or stolen items, such as luggage, but the coveragelimits may be lowerthan what you would get with a standalone travel insurance policy.
Understand the Claim Process:It's important to understand the claim process for the credit card travel insurance policy, including the documentation required and any time limits for submitting a claim. You should also be aware of any deductibles or excesses that may apply.
Consider Supplementary Coverage:If the credit card travel insurance policy's coverage is insufficient for your needs, you may want to consider purchasing additional coverage to supplement the policy.

Know This:Credit card travel insurance can be a convenient option for some travellers, but it's important to carefully review the policy details and understand the limitations and exclusions that may apply.

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.

Travel Insurance Frequently Asked Questions

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.

We have published this guide to help you maximise the benefits while minimising the cost of travel insurance wherever and whenever you travel outside of New Zealand.

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.

What does travel insurance usually cover?

Standard travel insurance policies usually provide cover for the following:

Cancellation and traveldelays: 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 coverdamage you causeto 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 personalbelongings: 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.

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 onlybasic 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. This means that if you don't get sick, you still could experience some other out of pocket expenses and inconvenience.

Our view: Travel insurance to Australia is affordable, and to protect yourself from unknown costs and stress we suggest considering buying a policy. Our research confirms you can buy 5-day policies for around $20 which is affordable and provide a lot of upsides should you need to claim.

Expert tip: When purchasing a policy, check that the medical cover goes beyond standardreciprocal 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.

Do I need travel insurance if I'm on holiday in the Pacific Islands?

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 may quickly turn into big ones if there's no suitable treatment.

Comprehensive travel insurance is a popular solution to eliminate the costs and stress associated with an accident or emergency when holidaying in any of the Pacific Islands.

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 andpublic 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.Beyond the inclusions, it's essential to look at the policy limits and exclusions, as these can vary between insurers.

In terms of adding specific coverage, many insurers offer additional options for coverage, such as coverage for extreme sports or high-value items like cameras orjewellery. For this reason it's essential to read through the policy documents carefully and make sure that any additional coverage you need is included or can be added for a reasonable cost.

Your policy cost will vary depending on a variety of factors, such as your destination, length of travel, age, and pre-existing medical conditions. To get the best pricing, you'll need to obtain several quotes. However, the process of online quotes is fast and you should be able to compare 3-5 policies in about five minutes (unless you have pre-existing conditions or need specialist underwriting).

Related guides:

Travel Money Cards
Flight Centre Mastercard Review
Wise Debit Card Review
Foreign Currency Exchange
Best Foreign Currency Debit and Credit Cards
Air New Zealand Airpoints Dollars-Earning Credit Cards
Qantas Credit Cards
Singapore Airlines Credit Cards
Air New Zealand OneUp Upgrade Bid Guide