Travel Insurance NZ - Compare International & Domestic Cover | InsureNZ

What is Travel Insurance?

Travel insurance protects you financially against unexpected events while traveling domestically or internationally. It covers medical emergencies, trip cancellations, lost luggage, flight delays, and many other travel-related risks. For New Zealanders traveling abroad, travel insurance is essential protection against potentially devastating costs.

A medical emergency overseas can cost tens or hundreds of thousands of dollars. A broken leg in the USA might cost $50,000-$100,000 for treatment and medical evacuation home. Trip cancellations due to illness or family emergencies can mean losing thousands in non-refundable bookings. With over 3 million overseas trips taken by New Zealanders annually, travel insurance has never been more important for protecting your finances and wellbeing while abroad.

Types of Travel Insurance Coverage

Single Trip Travel Insurance

Single trip insurance covers one specific journey from departure to return. It's ideal for annual holidays, business trips, or one-off travel. Coverage typically includes medical expenses, cancellation, curtailment, luggage, and personal liability. Policies can be purchased for trips ranging from a few days to 12 months, with premiums calculated based on destination, duration, age, and coverage level.

Annual Multi-Trip Travel Insurance

Annual multi-trip policies cover unlimited trips over 12 months, with each trip typically limited to 30, 60, or 90 consecutive days. This is cost-effective for frequent travelers, usually cheaper than 2-3 single trip policies combined. Perfect for business travelers, those with overseas family, or anyone taking multiple holidays annually. Annual policies typically cost $300-$800 depending on age, destinations, and coverage level.

Domestic Travel Insurance

Domestic travel insurance covers trips within New Zealand. While medical costs are covered by the public health system, domestic insurance protects against cancellations, lost luggage, rental vehicle excess, and travel delays. It's particularly valuable if you've paid significant non-refundable deposits for accommodation, tours, or events. Domestic policies are affordable, typically $20-$60 for a week depending on value of trip.

Adventure and Sports Travel Insurance

Specialized adventure policies cover high-risk activities like skiing, snowboarding, scuba diving (below 30m), mountaineering, or extreme sports. Standard policies often exclude these activities or limit coverage to recreational participation. Adventure policies cost 20-50% more than standard travel insurance but provide essential coverage for New Zealanders pursuing overseas adventure activities.

Cruise Travel Insurance

Cruise-specific insurance includes standard travel cover plus cruise-related benefits like missed port departures, cabin confinement, itinerary changes, and higher medical coverage for shipboard treatment. Standard travel insurance may not adequately cover cruise-specific scenarios. Cruise policies typically cost 10-30% more than standard international travel insurance.

How Much Does Travel Insurance Cost in NZ?

Travel insurance costs vary based on destination, duration, age, and coverage level. Here are typical premiums for New Zealand travelers in 2024:

Single Trip Insurance (Comprehensive Cover):

Australia (1 week): $50-$100 (ages 18-60), $100-$180 (ages 61-75)
Pacific Islands (2 weeks): $80-$150 (ages 18-60), $150-$250 (ages 61-75)
Asia (2 weeks): $120-$200 (ages 18-60), $200-$350 (ages 61-75)
Europe (3 weeks): $200-$350 (ages 18-60), $350-$600 (ages 61-75)
USA/Canada (2 weeks): $250-$450 (ages 18-60), $450-$750 (ages 61-75)
World Trip (6 months): $800-$1,500 (ages 18-60), $1,500-$2,500 (ages 61-75)

Annual Multi-Trip Insurance:

Ages 18-40: $300-$500/year (30-day trip limit)
Ages 41-60: $400-$700/year (30-day trip limit)
Ages 61-75: $600-$1,200/year (30-day trip limit)

Specialist Policies:

Winter Sports Add-on: +$30-$80 per trip or +$100-$200 annually
Cruise Insurance: +10-30% above standard international premiums
Pre-existing Conditions: +20-100% depending on condition severity

What's Covered by Travel Insurance?

Medical & Emergency Coverage:

Overseas medical treatment (typically $10-50 million limit)
Hospital accommodation and surgery
Emergency dental treatment ($500-$2,000 limits)
Medical evacuation and repatriation ($unlimited on most policies)
24-hour emergency assistance hotline
Return of remains (in event of death)

Cancellation & Disruption Coverage:

Trip cancellation before departure (typically up to $10,000-$50,000)
Trip curtailment (cutting trip short) for covered reasons
Travel delay compensation ($100-$200 per 6-12 hours typically)
Missed connections and alternative transport costs
Accommodation if stranded due to covered events
Cancellation due to natural disasters, illness, death of family member

Luggage & Personal Effects:

Lost, stolen, or damaged luggage (limits typically $5,000-$15,000)
Individual item limits (often $500-$2,000 per item)
Delayed luggage allowance ($200-$500 for essential purchases)
Personal money and travel documents ($500-$2,000 limits)
Laptop and electronic device cover (with limits)

Other Coverage:

Personal liability ($1-5 million typical limits)
Rental vehicle excess (up to $5,000-$7,500)
Legal expenses for overseas incidents
Hijack and kidnap coverage
Loss of passport and emergency document replacement

What's NOT Covered by Travel Insurance?

Pre-existing Medical Conditions: Any medical condition you had before purchasing insurance is typically excluded unless declared and accepted (often with premium loading).
High-Risk Activities: Adventure sports beyond basic recreational level often excluded unless specifically added.
Alcohol or Drug-Related Incidents: Injuries or losses while intoxicated or under influence of drugs are excluded.
Travel Against Medical Advice: Traveling when medically unfit or against doctor's recommendations voids coverage.
Travel to Unsafe Destinations: Travel to countries with MFAT "Do Not Travel" warnings typically excluded.
Pregnancy After 26-32 Weeks: Most policies exclude pregnancy-related claims after 26-32 weeks gestation.
Routine Medical Care: Pre-planned medical treatment or routine checkups aren't covered.
Non-Declared Valuables: High-value items not specifically declared may exceed policy limits.
Mysterious Disappearance: Items lost without evidence of theft or specific incident often not covered.
Change of Mind: Canceling travel because you no longer want to go isn't covered.

Comparing Major Travel Insurance Providers

Southern Cross Travel Insurance

Southern Cross is one of New Zealand's most trusted travel insurers with comprehensive coverage options. They offer single trip, annual multi-trip, and cruise insurance with high medical coverage limits (up to $50 million) and excellent emergency assistance services. Southern Cross provides good coverage for pre-existing conditions (with declaration), winter sports options, and 24/7 emergency support. Premiums are mid-range to premium but backed by strong customer service and claims support.

AA Travel Insurance

AA Insurance offers comprehensive travel insurance for AA members with discounts up to 10%. Their policies include high medical coverage, good cancellation benefits, and rental vehicle excess coverage. AA provides single trip and annual multi-trip options with optional winter sports cover. Known for straightforward policies and efficient claims processing. Premiums are competitive, particularly for AA members.

ANZ Travel Insurance

ANZ offers travel insurance with comprehensive medical coverage, good cancellation benefits, and competitive premiums for ANZ customers. They provide single trip and annual policies with optional adventure activity coverage. ANZ travel insurance integrates well with their credit cards (some cards include complimentary travel insurance). Their premiums are competitive, often 10-20% below specialist travel insurers for equivalent coverage.

Travel Insurance Direct

Travel Insurance Direct specializes in travel insurance only, offering comprehensive coverage with competitive premiums. They provide flexible policy options, good medical coverage limits, and excellent customer service. Known for transparent pricing and straightforward policy wording. Their online quote system is user-friendly, and they offer good value for money, typically 15-25% below premium insurers.

World Nomads

World Nomads specializes in backpacker and adventure travel insurance with coverage for extensive adventure activities. Popular with working holiday makers, gap year travelers, and adventure tourists. They allow policy purchases after departure and extensions while traveling. Coverage includes over 200 adventure activities, though premiums are 20-40% higher than standard travel insurance. Ideal for extended travel and adventure seekers.

Travel Insurance for Different Destinations

Australia Travel Insurance

While New Zealand has a reciprocal healthcare agreement with Australia covering basic public hospital care, it doesn't cover specialist treatment, ambulance costs, repatriation, or many medical expenses. Private hospital treatment in Australia can cost $1,000+ per day. Ambulance costs $500-$2,000 per trip. Medical evacuation back to NZ can exceed $50,000. Travel insurance for Australia is essential despite the healthcare agreement.

USA & Canada Travel Insurance

The USA has the world's most expensive healthcare. A broken leg can cost $50,000-$100,000, a heart attack $100,000-$200,000+, and complex medical evacuation $200,000-$500,000. Medical coverage of at least $10 million is essential. Many insurers provide unlimited USA medical coverage. Premiums for USA travel are 50-100% higher than Asian or European destinations due to extreme medical costs. Never travel to the USA without comprehensive travel insurance.

European Travel Insurance

Europe offers good medical care at lower costs than the USA, but treatment for tourists can still be expensive. Medical evacuation from remote areas (Alps, Mediterranean islands) can cost $20,000-$100,000. European travel insurance should include $5-10 million medical coverage and comprehensive cancellation benefits given expensive European trips. Winter sports coverage essential if skiing or snowboarding.

Asian Travel Insurance

Asia offers diverse destinations from developed (Japan, Singapore) to developing (Southeast Asia). Medical standards vary significantly by location. Medical evacuation from remote areas to quality facilities can cost $30,000-$100,000. Asia travel insurance should include good medical coverage ($5-10 million), evacuation benefits, and coverage for adventure activities (scuba diving, trekking). Premiums are moderate, reflecting lower medical costs but higher adventure activity risks.

Pacific Islands Travel Insurance

Pacific islands often have limited medical facilities, making medical evacuation coverage crucial. Serious medical issues require evacuation to NZ or Australia ($30,000-$80,000 costs). Ensure your policy covers evacuation from remote islands and marine activities (snorkeling, diving, kayaking). Cyclone season (November-April) creates cancellation risks - ensure trip cancellation coverage includes weather events.

Pre-existing Medical Conditions

Pre-existing conditions are any medical conditions you had before purchasing travel insurance, including conditions you've seen a doctor about, taken medication for, or have ongoing symptoms. Failure to declare pre-existing conditions can void your entire policy, not just claims related to that condition.

Most insurers require declaration of all pre-existing conditions. Some stable, well-controlled conditions (like controlled high blood pressure, well-managed asthma) may be covered at standard rates or with minor premium loadings (10-30%). Serious or unstable conditions may result in that condition being excluded, or premium loadings of 50-200%.

Some insurers offer automatic coverage for certain stable conditions if you meet specific criteria (no symptoms, medication unchanged for 3-12 months, doctor's clearance). Always declare everything and get written confirmation of what's covered. If one insurer won't cover your condition, shop around - different insurers have different medical underwriting criteria.

Adventure Activities and Winter Sports

Standard travel insurance typically covers recreational activities like swimming, snorkeling (to 10m), hiking on marked trails, cycling, and popular tourist activities. More adventurous pursuits often require additional coverage or specialist policies:

Activities Often Requiring Additional Cover:

Skiing and snowboarding (usually available as add-on $30-$80)
Scuba diving below 30 meters depth
Bungee jumping and skydiving
Rock climbing and mountaineering
White water rafting (grade 4+)
Motorcycling (particularly without appropriate license)
Competitive sports participation
Professional or paid activities

Always check your policy's adventure activities list before traveling. If an activity isn't explicitly covered or is on the exclusion list, you won't be covered for related injuries. Specialist adventure travel insurance covers extensive activities but costs 20-50% more than standard policies.

How to Choose the Right Travel Insurance

Assess Your Trip: Consider destination, duration, activities planned, and value of non-refundable bookings.
Determine Medical Coverage Needed: USA/Canada trips need unlimited or $10+ million. Other destinations $5-10 million adequate.
Review Pre-existing Conditions: Declare all medical conditions and ensure they're covered or explicitly excluded in writing.
Check Activity Coverage: Ensure your planned activities (skiing, diving, adventure sports) are covered or can be added.
Compare Cancellation Benefits: If you've paid significant non-refundable deposits, ensure adequate cancellation coverage.
Consider Annual Policies: If taking 2-3+ trips annually, annual multi-trip is usually more cost-effective.
Review Excess Amounts: Higher excesses ($100-$500) reduce premiums but increase out-of-pocket costs when claiming.
Check Age Limits: Many policies have age limits (often 75-80). Senior travelers need specialist policies.
Read Exclusions Carefully: Understand what's NOT covered to avoid claim surprises.
Buy Early: Purchase within 14-30 days of booking to maximize cancellation coverage.

Making a Travel Insurance Claim

If you need emergency medical treatment abroad, contact your insurer's 24-hour emergency line immediately. They'll direct you to appropriate facilities, arrange payment guarantees, and coordinate care. For medical claims, the insurer often pays providers directly, so you don't need to pay upfront for major expenses.

For cancellations, contact your insurer before canceling travel if possible. Provide documentation supporting the cancellation reason (medical certificates, death certificates, employer letters, etc.). For luggage claims, report theft to police within 24 hours and obtain a police report. For airline-delayed luggage, get written confirmation from the airline.

Keep all receipts, documentation, medical reports, police reports, and correspondence. Take photos of damaged items. Submit claims promptly - most policies require claims within 30-90 days of returning home. Straightforward claims (delayed luggage, minor medical) typically settle within 2-4 weeks. Complex claims (major medical, cancellations) may take 6-12 weeks.

Ways to Save on Travel Insurance

Choose Annual Policies: If taking 2-3+ trips yearly, annual multi-trip saves 30-50% versus multiple single trip policies.
Increase Excess: Raising excess from $0 to $200-$500 can reduce premiums by 15-30%.
Compare Multiple Providers: Premiums vary 30-50% for identical coverage. Compare at least 3-4 insurers.
Use Credit Card Insurance: Some premium credit cards include travel insurance, but check coverage carefully - often less comprehensive than standalone policies.
Skip Domestic Insurance: For low-value NZ trips, self-insure rather than purchasing domestic travel insurance.
Buy Direct: Purchase directly from insurers rather than through travel agents (who add commissions).
Travel Off-Peak: Some insurers offer seasonal discounts for non-peak travel periods.
Group Policies: Family policies cost less than insuring each member separately (typically 30-40% savings).
Reduce Coverage for Short Trips: Basic policies adequate for short, low-value trips to low-risk destinations.

Frequently Asked Questions

What does travel insurance cover?

Travel insurance typically covers medical emergencies abroad, trip cancellation and interruption, lost or stolen luggage, flight delays and missed connections, personal liability, emergency evacuation, and 24-hour emergency assistance. Coverage varies by policy level.

How much does travel insurance cost in NZ?

Travel insurance for New Zealanders typically costs $50-$150 for a week in Australia, $150-$400 for a two-week trip to Europe or North America, and $200-$600 for a month in Asia. Annual multi-trip policies cost $300-$800 per year depending on age and destinations.

Do I need travel insurance for Australia?

Yes. While New Zealand has a reciprocal healthcare agreement with Australia, it only covers basic public hospital care. You're not covered for many medical costs, repatriation, trip cancellations, or lost luggage. Travel insurance is essential even for Australian travel.

Does travel insurance cover COVID-19?

Most NZ travel insurance policies now cover COVID-19 related medical expenses if you contract it while traveling. However, coverage for cancellations due to COVID-19 varies - some policies exclude pandemic-related cancellations while others include them. Check policy wording carefully.

What is medical evacuation cover?

Medical evacuation covers the cost of emergency transport to adequate medical facilities or back to New Zealand if you're seriously ill or injured abroad. This can cost $50,000-$200,000+ without insurance. All comprehensive travel policies include this essential cover.

Can I get travel insurance with pre-existing medical conditions?

Yes, but you must declare all pre-existing conditions. Some conditions may be excluded, others covered with premium loadings (20-100% extra), or covered at standard rates if stable and well-controlled. Failure to disclose conditions can void your entire policy.

What is an annual multi-trip policy?

An annual multi-trip policy covers unlimited trips over 12 months, with each trip limited to a specified duration (typically 30-90 days). It's cost-effective if you travel 2-3+ times annually, often costing less than 2-3 single trip policies combined.

Does travel insurance cover adventure activities?

Standard policies cover common activities like snorkeling and hiking. Adventure activities like skiing, scuba diving, bungee jumping, or skydiving often require additional coverage or specialist policies. Always check your policy covers your planned activities before traveling.

When should I buy travel insurance?

Buy travel insurance as soon as you book your trip. Many policies only cover cancellations if purchased within 14-30 days of booking. Early purchase also protects against unexpected events between booking and departure that might force cancellation.

Does travel insurance cover flight cancellations?

Travel insurance covers cancellations due to covered reasons (illness, injury, death, natural disasters). It doesn't cover cancellations due to changed plans, fear of travel, or airline cancellations (which airlines must compensate). Read policy wording for specific covered cancellation reasons.

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