17 August 2023 by Laura Sedgwick

With many of us feeling the pinch of the cost-of-living crisis, it’s tempting to scrimp on travel insurance and take the risk on our next holiday. Southern Cross Travel Insurance (SCTI) is here to remind us that getting covered is unlikely to break your holiday budget, but it could potentially save you a lot of money in the long-run.

The cost of a single-trip policy for two weeks in Bali can cost as little $230.36 for a 30 year-old couple, with SCTI’s International Comprehensive travel insurance policy. What’s more, dependent children are covered at no extra cost, if you have little ones travelling with you.

That’s only $16.45 a day, which is less than the price of a coffee and a sandwich at lunchtime.

Jo McCauley, CEO at SCTI, is keen to remind Aussies heading off overseas that what they might consider to be a short-term financial gain could end up being an expensive mistake.

“We’re all feeling the pinch at the moment and so it’s natural that people are starting to look at ways to save money. However, it’s important to remember not to cut back on your travel insurance,” says McCauley.

“We carried out research at the beginning of the year which showed that 1 in 10 Aussies would cut back on travel insurance as a direct result of the cost-of-living crisis. With interest rates continuing to rise, we think this number may have increased even further.”

The research also found that three in four (74%) Australians who travelled overseas last year experienced an issue with their travel or travel plans. The most common issues experienced during international travel were an illness other than COVID-19 (43%), followed by airline-related issues such as lost luggage, flight delays or cancellations (38%), followed by COVID-19-related travel disruption (36%).

“Aussies might think that dropping travel insurance will leave them with more money to enjoy their holiday. But the savings won't stretch very far,” says McCauley.

“For the budget-conscious traveller, we have an International Medical Only policy which provides medical expenses cover for overseas travel but it doesn’t cover trip cancellations or lost luggage, so we can offer it at a lower price than our fully comprehensive product,” says McCauley.

SCTI has pulled together some popular travel related purchases that will likely cost you more than your daily cost for travel insurance:

• A grab taxi from Singapore airport to Marina Bay Sands - $18.27
• Two Double-Double Burger combo meals at In-N-Out in LA - $20.40
• Adult entry to the Kula Wild Adventure Park in Fiji - $35.32
• A bucket of Bintangs at Ku De Ta in Bali - $30.11
• One-day adult lift pass for Queenstown & Mt Hutt - $139
• Adult entry to the Tower of London - $65.18
• Two margaritas at Skylight bar in Phuket - $20.20
• Adult admission to the Petronas Towers in Kuala Lumpur - $32.81

“Many of us happily accept the costs of these common place travel purchases and yet we might consider travelling without travel insurance. However, if you end up needing to seek medical treatment overseas and you don’t have travel insurance then the costs could have a significant financial impact," says McCauley. “An air ambulance from Bali to Sydney can cost anywhere between $80,000 and $110,000 and not many people can afford a medical bill that size. It’s just not worth taking the risk!”

“We’d encourage everyone to ensure they take out travel insurance regardless of where they’re travelling as it could end up saving you significantly and you can relax and enjoy your holiday with the peace of mind you’re covered in the case of the unexpected.”