Best travel insurance in New Zealand. What are the options and how do they work?

Each year hundreds of thousands of New Zealanders travel abroad to explore new places, visit family and follow up on exciting opportunities. Many choose to buy travel insurance for the peace of mind of knowing they’re covered if the unexpected were to happen.

In this guide we’re going to take a look at what travel insurance is, why it’s beneficial to have and five of the top international travel insurance options available in New Zealand.

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What is travel insurance?

Travel insurance is coverage that’s designed to help you financially if something unexpected were to go wrong. Some of the benefits that are often included under a travel insurance policy are medical emergencies, travel cancellations or delays, personal liability costs and luggage.

Policies vary between insurers and there tends to be different policies offered for domestic and international travel.

The benefits of getting travel insurance coverage for your trips

There are quite a few benefits to having travel insurance.

• Gain the peace of mind knowing you have financial protection while travelling
• In the event of a medical emergency you can seek effective treatment without worrying about the cost
• If a personal item is damaged or stolen, there are unexpected delays or cancellations, or your luggage is lost, you may be able to receive some compensation or a replacement

It’s also important to note that some countries require you to have valid travel insurance as a condition of entry.

Here are some of the top travel insurance packages in New Zealand

To get you started in your travel insurance search, here are five policies to consider.

• Cover-More International Travel Insurance
• AA International Travel Insurance
• AMI Travel Insurance
• Southern Cross Travel Insurance
• Tower Travel Insurance

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1. Cover-More International Travel Insurance

Cover-More’s Options Travel Insurance is for international travellers seeking a comprehensive insurance solution.¹ The insurer that administers this policy is Zurich Australian Insurance Limited.

Here’s some of the main benefits.

• Unlimited overseas medical expenses including emergency repatriation or evacuation up to 12 months from the onset
• No limit on valid additional expenses
• Includes coverage for luggage, travel documents, missed connections and rental vehicle insurance excess
• Able to choose the level of cover for cancellation and amendment costs
• $3,000,000 limit for personal liability

These are some of the general exclusions to be aware of.

• Personal liability does not apply to motorcycle or moped riding, and there is no coverage for motorcycles over 250cc
• Snow skiing, snowboarding, snowmobiling and On-Piste or cross-country skiing are not covered without the Snow Sports add-on
• Any claims arising from a COVID-19 mandatory quarantine or isolation you need to undergo that are related to cross area, border, region or territory travel expenses.
• Claims connected to drinking too much alcohol, which is defined as 950mg/l.

To sign up for Cover-More International Travel Insurance head to their website and complete the online quote. If you’re happy with the policy and price you can follow the prompts to complete the purchase.

Read more: Cover-More travel insurance. Packages, application, fees and tips

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2. AA International Travel Insurance

For overseas holidaymakers, AA offers the International Leisure Cover Policy.² It’s managed by AWP Services New Zealand and underwritten by The Holland Insurance Company.

Here’s some of the benefits available under the Comprehensive Plan.

• Unlimited overseas medical expenses as well as $250,000 coverage for Terrorism Overseas Medical Expenses
• Epidemics and pandemics are covered with some sub-limits and restrictions
• Includes coverage for travel delays, lost frequent flyer points, missed connections and loss of deposits
• Personal baggage is covered up to $30,000 with sub-limits
• $2,500,000 limit for personal liability and $10,000 for defence costs

These are a few of the general exclusions that apply.

• No coverage for motorcycles or mopeds over 200cc, without a helmet or without a valid drivers licence, whether you’re the driver or passenger
• Skiing or snow-boarding outside of a ski resort
• Travelling for for medical or dental treatment, or against the recommendation of the New Zealand Government
• Any extreme versions of sports and a range of activities including skydiving, rock climbing, white water rafting and hunting

If AA Travel Insurance sounds right for you, you can purchase it online by inputting your trip information and following the prompts.

Read more: AA travel insurance. Packages, application, fees and tips

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3. AMI Travel Insurance

AMI has one travel insurance plan available for international travellers which can be purchased as a single trip or annual multi-trip policy. The insurer behind the policy is Zurich Australian Insurance Limited.³

Here’s some of the key benefits of the AMI International Travel Insurance policy.

• Unlimited overseas medical expenses including emergency repatriation or evacuation
• Some benefits for COVID-19 have been specifically included
• Includes coverage for delayed luggage, personal belongings, cash and loss of income
• Choose the level of cover you prefer for cancellation and amendment costs
• $2,500,000 limit for personal liability with $10,000 for legal expenses

These are some of the general exclusions to consider.

• Any claims arising from government actions including restrictions, sanctions and prohibitions.
• Scuba diving to a depth of 30m unless you have an Open Water Diving Certificate or are with a qualified instructor
• Snow skiing, snowboarding or snowmobiling unless you have purchased additional coverage
• Claims arising from childbirth

Purchasing the policy is a relatively simple process which can be initiated by completing the online quote on their website.

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4. Southern Cross Travel Insurance

Southern Cross Travel Insurance are their own insurer and offer a few different policies.⁴ The most inclusive one for international travellers is the International Comprehensive policy.

Here’s some of the benefits.

• Unlimited overseas medical and evacuation expenses
• Up to $1,000 limit for valid claims related to childcare
• Includes coverage for emergency dental, travel interruption, cutting the journey short, personal items and cash
• Able to increase the amount of cover for some benefits
• $1,000,000 limit for personal liability per insured person

These are some of the things that aren’t covered based on the general exclusions.

• Claims arising for government directives, restrictions, prohibition, quarantine or detention
• If a natural event impacted your destination before your journey commenced
• Cruises, riding a moped or motorbike and skiing or snowboarding unless the relevant optional coverage was selected and added to the Certificate of Insurance
• Scams or fraud you could have anticipated

To buy a Southern Cross Travel Insurance policy you need to complete the online quote process and once that’s done you can follow the prompts to complete the purchase.

Read more: Southern Cross travel insurance. Packages, application, fees and tips

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5. Tower Travel Insurance

When it comes to international travel insurance Tower offers Comprehensive and Essentials plans. The policy is issued by AWP Services New Zealand and underwritten by Tower Limited.⁵

Here’s a few of the benefits for the Comprehensive plan.

• Unlimited overseas medical expenses
• No limit on loss of deposits, cancellation of journey paid in full or the curtailment of your journey
• Includes coverage for frequent flyer points, emergency baggage, emergency dental and personal items
• Unlimited coverage for valid claims relating to epidemics and pandemics
• $2,500,000 limit for personal liability and $10,000 for defence costs

These are some of the general exclusions that apply to both international plans.

• If your claim arises from something they deem a deliberate or reckless act
• The New Zealand recommended not to travel to the destination prior to the purchase of the insurance policy
• Being under the influence of any intoxicating liquor, drug or substance unless prescribed
• No coverage for drivers and passengers riding motorcycles or mopeds over 200cc, without a helmet or without a valid drivers licence

Getting a policy with Tower is a simple matter of completing their online quote then continuing on to the payment page.

Read more: Tower travel insurance. Packages, application, fees and tips

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What to look for when searching for travel insurance

When searching for a travel insurance policy you want to make sure it suits you and your plans. Here’s a few criteria you can use to judge them.

• Is the overseas medical coverage unlimited and does it include emergency evacuation and repatriation?
• Are your pre-existing medical conditions covered?
• What’s covered if your plans change?
• Are the activities you intend to do while you travel covered?
• Is there anything in the list of general exclusions that could impact you due to your travel plans or health?

What to keep in mind

The main thing to keep in mind when purchasing travel insurance is to carefully read the Product Disclosure Statement so you know exactly what you are and aren’t covered for.

Not all policies are equal and the available coverage for your travel plans and health conditions may not be clear until you’ve checked the fine print.

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Sources:

1. Cover-More -Option Travel Insurance
2. AA Travel Insurance - International Leisure Cover Policy
3. AMI - AMI Travel Insurance Policy Wording
4. Southern Cross Travel Insurance - International Comprehensive Single Trip
5. Tower - Travel Insurance

Sources checked on: 24 November 2023