Find out why travel insurance premiums are skyrocketing in Australia
The most recent Travel Insurance Report for 2024 from financial comparison site Mozo highlights a notable increase in the costs of travel insurance for Australians.
Essential, comprehensive, cruise, and ski travel insurance premiums have increased by an average of 24% in the last year, according to the price comparison website.
Based on the findings, here are a few places where the growth is particularly noticeable: With a significant increase of 31.86%, cruise travel insurance is at the top of the pack, closely followed by ski travel insurance at 25.85%. Following closely behind with a 23.23% increase is comprehensive travel insurance, and essential travel insurance recorded the lowest increase of 14.81% year-on-year.
Financial analyst Rachel Wastell of Mozo warned Australians to be wary of this steep price increase.
“You should be thinking about travel insurance if you’re already back at work and planning your next holiday,” she advised.
Reasons to Avoid Skipping Travel Insurance
In light of the current international crisis, Wastell stressed the need to purchase travel insurance.
While the average cost of fundamental protection is just $13 per day, the analysis revealed that travel insurance costs less than $20 per day, which isn’t much in the grand scheme of things, she added. “If anything goes wrong on vacation, it’s worth it, and it’s cheaper than a meal these days.”
Although COVID instances are on the decline, the report stated that the threat is still there and that travelers should not forego insurance.
The number of reported cases of COVID has decreased, which has boosted traveler trust. However, according to Wastell, it is essential that vacationers do not forego insurance completely. Even though there are now no COVID-19 travel restrictions in place by the Australian government, over 100,000 instances are reported weekly worldwide.
“Without health insurance, being abroad with COVID could quickly become a crippling financial burden, particularly in the United States, where medical expenses are substantially higher.”