Understanding Your Allianz Travel Insurance Premium

Travel insurance premiums are likely to change and you may wonder why. As an established insurer, we aim to be transparent with our customers. We want to help you understand your premium. This guide gives you the facts: how your premium works, how we calculate it, and why the costs can change over time.

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How your premium works

The money you pay us to insure your travels is called a premium. By paying your premium, you’re contributing towards a shared pool of funds that helps to pay claims. It’s also used for expenses – such as staff, office space and other things that keep our business going.

We consider each policyholder’s circumstances to determine their likelihood of making a claim. That’s how we make sure each policyholder’s premium makes a fair contribution to the shared pool of funds.

Calculating your premium

We’ll base your premium on your circumstances, the cover you’ve chosen, and your likelihood of making a claim. That’s how we make sure each policyholder’s premium reflects what we believe is the likelihood to make a claim. To work out how much it will cost to provide insurance for your travels, we ask you specific questions. The answers you provide help us determine your premium. Your answers are important, and all our customers have a duty to take reasonable care not to make a misrepresentation.

To calculate your premium, we look at a number of factors. Some of the key factors to determine your likelihood of making a claim include:

Travel destination

The cost of medical treatment in some countries will be higher than in others. We also look at how much it would cost to bring the traveller back to Australia due to a serious medical emergency or death. This varies between destinations. For example, travelling to certain destinations can impact your premium because of the different medical costs there.

Trip length

The longer you’re travelling, the more exposure you'll have to potential risks. This is because the possibility of an incident happening increases with time. So, the more days you spend travelling, the higher the chance of an unexpected event occurring. For example, in a 30 day trip, you’ll be exposed to more potential risks than you would be in a 10 day trip.

How many people are travelling

The number of travellers listed on the policy can influence the premium. With each extra person covered, there’s an increased chance of making a claim. For example, of needing medical attention or experiencing a travel-related issue.

The age of the travellers

Older travellers may be more likely to make insurance claims. As people age, they can become more prone to health issues. This means there’s a higher chance they’ll need to cover the costs of medical care while travelling. Older travellers are also more likely to experience trip cancellations or interruptions, especially due to health emergencies.

How far in advance of your trip you purchase insurance

The amount of time between buying travel insurance and departure date affects how long the policy is in effect before the trip begins. The longer this time is, the more chance there is for unexpected changes in travel plans. This could result in needing to claim for trip cancellation. For example, buying travel insurance six months before the trip may result in a higher premium, than if it was bought the week before.

Pre-existing medical conditions of the travellers

If you have a pre-existing medical condition before taking out travel insurance, it could increase the premium. This is because there's a higher chance that you’ll need medical help while travelling. Some health problems could also make it more likely for your trip to be cancelled or cut short. Our Comprehensive Travel Insurance lets you apply to extend cover to eligible pre-existing medical conditions.

The amount and type of cover

Additional cover, or increased limits on benefits, impacts the potential size of a claim. For example, a policy with a $20,000 cancellation benefit limit will increase the size of a potential claim compared to a policy with a $5,000 cancellation benefit limit. These may, therefore, impact the price of your premium.

The Allianz difference

As part of a global network with over a century of experience, we’re ready to help you.

World’s #1 Insurance Brand 2023

We’re part of the Allianz Group, the world’s top insurance brand as recognised by Interbrand’s Best Global Brands 2023.

We’re well-established in Australia

We’ve been securing the future of our customers in Australia since 1914, and over 4 million Australians trust us with their insurance.

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Disclaimer

This article has been prepared by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL234708 ("Allianz"). In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way.

Any opinions expressed constitute our views at the time of issue and are subject to change. Neither Allianz, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article.

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Allianz acknowledges Aboriginal and Torres Strait Islander peoples as the Traditional Custodians of the lands on which we live and work across Australia. We pay our respect to First Nations Elders past and present.

Any advice here does not take into account your individual objectives, financial situation or needs. Terms, conditions, exclusions, limits and applicable sub-limits apply. Before making a decision about this insurance, please consider the relevant Product Disclosure Statement (PDS)/Policy Wording and Supplementary PDS (if applicable). Where applicable, the PDS/Policy Wording, Supplementary PDS and Target Market Determination (TMD) for this insurance are available on this website.

Travel Insurance is issued and managed by AWP Australia Pty Ltd ABN 52 097 227 177 AFS Licence No. 245631, trading as Allianz Global Assistance (AGA) as agent of the insurer Allianz Australia Insurance Limited ABN 15 000 122 850 AFS Licence No. 234708 (Allianz). Travel Insurance is underwritten by the insurer Allianz. Terms, conditions, exclusions, limits and applicable sub-limits apply.

We don’t provide advice based on any consideration of your objectives, financial situation or needs. Before making a decision, please consider the Product Disclosure Statement available on this website. If you purchase this insurance, AGA will receive a commission that is a percentage of the premium. Ask us for more details before we provide you with any services on this product.

Understanding your Allianz Travel Insurance premium