Everyone travels, but despite being such a major part of our lives, there are a lot of things we don’t plan for until it’s too late.

And when we’re in trouble, particularly when we’re on holidays, the best bet to combat the unexpected is having travel insurance.

“Travel insurance is a competitive market and there are hundreds of policies available,” said Canstar’s finance editor Justine Davies said.

“That choice adds to the confusion for travellers though; there are many quite significant differences between policies and choosing the wrong one is not much better than having no cover at all.”

“You absolutely don’t want to find out that you’re not covered for something important when the crisis is happening.”

Every year Canstar looks at eligible travel insurance policies in two categories – Domestic and International – to see how they perform for different types of travellers flying to various popular destinations. This year, they compared 229 policies from 73 insurers to find who offers the best of the best. Here’s the wrap:

Common Exclusions

“No travel policy will cover you for every single thing that might go wrong while you’re away,” Davies said.

“It’s stating the obvious but you need to be covered for the things that you’re intending to do. Some common exclusions can include hazardous pursuits such as motorcycling and scuba diving.”

“Then there are exclusions such as pre-existing medical conditions, risky behaviour – don’t do anything silly while drunk – and simply being careless with your stuff. Read the terms and conditions carefully.

Domestic travel insurance

Domestic travel insurance policies cover travellers for things such as cancellations, loss of luggage, rental vehicle excess and legal liability.

The average cost of domestic travel insurance is modest and the cost will stay the same regardless of which part of Australia you are visiting. The following table shows the minimum, maximum and average cost of domestic travel insurance for a 10 day holiday anywhere in Australia, based on the products surveyed.

Domestic travel insurance cover

Source: CANSTAR. Travel Insurance Star Ratings report research 2015

“While the cost of domestic travel insurance will be the same regardless of where people are going, they still need to be mindful of exclusions or possible loadings,” Davies said.

“If you’re going skiing, scuba diving, bungee jumping or rock climbing, for example, let your insurer know.”

This year, Canstar announced the following winners:

Outstanding Value – Domestic Travel Insurance Award.

• Downunder Insurance Services
• SGIO/SGIC/NRMA

International travel insurance

Unlike domestic cover the cost of international travel insurance will vary depending on the destination, but it is will still represent a small fraction of total travel costs. Canstar has crunched the numbers on policies from 73 providers to calculate the minimum, maximum and average travel insurance premiums you will pay for a 10 day jaunt, according to which countries you plan to visit.

Source: CANSTAR. Travel Insurance Star Ratings report research 2015

Outstanding Value – International Travel Insurance

InsureandGo

A winning combination of price and features has seen InsureandGo repeat its success of last year in CANSTAR’s international travel insurance ratings. It includes features such as:

• Accidental death coverage of up to $50,000 per person.
• Comprehensive coverage for Luggage and Travel documents.
• Standard coverage for Terrorism, Water Sport, Rock Climbing, Motor Cycle and Non-professional sporting trips.

Southern Cross Travel Insurance

This is the sixth year Southern Cross Travel (SCTI) has won the CANSTAR International Travel Insurance award. SCTI maintains consistency with a mix of features and standout prices. Features of note include:

• Cover for most pre-existing medical conditions, with the exception of diabetes and clinical depression.
• Unlimited cover for overseas medical and dental.
• Comprehensive cover for Luggage and Travel documents.
• Rental vehicle excess of $5,000 as standard.