One in three New Zealanders are boarding international flights without travel insurance, and many who do buy cover may face limited benefits in key areas, according to new analysis from personal finance research website MoneyHub. The findings, released on March 30, draw on more than 500 sample quotes from over 10 travel insurers. The updated guide compares cover for individuals, couples, families, and older travellers across 20 destinations and explains policy terms for consumers, including limits, exclusions, and common conditions. “Travel insurance isn’t about picking the lowest price – it’s about understanding what you’re actually covered for. A $30 bargain policy might leave you $15,000 short on stolen luggage or unable to cancel a $20,000 trip. The few extra dollars for proper coverage could save you thousands,” said Christopher Walsh, founder of MoneyHub.
MoneyHub estimates that about one in three New Zealand residents depart for overseas trips without any travel cover in place. The guide notes that a single medical incident offshore can result in bills in the tens of thousands of dollars, particularly in higher-cost healthcare markets. For travellers who do purchase insurance, the research suggests the premium gap between a basic option and a more comprehensive policy is often less than $20. The analysis states that this relatively small price difference can correspond with marked changes in benefits, sub-limits, and claim conditions. The report notes that insurers and intermediaries continue to encounter both non-insurance and underinsurance, particularly for customers heading to destinations such as the US, where routine treatment and short hospital stays can generate six-figure invoices.
According to MoneyHub, lower-priced policies in the sample typically feature reduced luggage limits, capped medical expenses, and narrower cancellation provisions. The guide states that savings at the point of sale may contribute to shortfalls at claim time if events fall outside the scope of cover. Luggage benefits showed a wide range. Some policies offer up to $25,000 of total luggage cover, while others provide about $10,000. For customers travelling with multiple devices or specialised equipment, the level of cover can influence how claims are settled.
Medical cover also varies. Certain policies cap medical benefits at about $10 million to $20 million, while others specify unlimited cover. The guide notes that for destinations with higher healthcare costs, the difference between capped and uncapped medical benefits may affect longer or more complex claims. Cancellation and trip disruption provisions were found to differ across products, with less expensive options sometimes linked to more restrictive wording, lower limits, and a broader set of exclusions.
MoneyHub’s report reviews credit card travel insurance and concludes that while these policies are often viewed as “free,” they can contain structural constraints. Common features include activation requirements, maximum trip durations, exclusions for pre-existing medical conditions, and more limited cover for travelling companions. These settings may leave some cardholders with gaps in protection, particularly older travellers or those on extended itineraries. Age remains a central rating and eligibility factor. The guide finds that premiums increase from age 65 and that some insurers decline cover beyond specified age bands. Although many brands market travel insurance, MoneyHub notes that only four underwriters are responsible for assessing and paying claims across the New Zealand market.
In a separate guide, also released on March 30, MoneyHub examines annual multi-trip travel insurance for frequent flyers. The research finds that for travellers taking two or more overseas trips per year, annual policies can, in some cases, cost less than multiple single-trip policies, depending on destinations, trip length, and travel patterns. Per-trip duration caps for annual policies in the sample range from about 45 to 90 days. Once a trip exceeds the stated cap, cover generally stops from that point forward, even though the annual policy remains in force for future trips that fall within the limit.
The analysis identifies wide pricing differences between insurers. In one scenario, a provider charged more than three times another insurer’s premium for what MoneyHub describes as equivalent coverage across its test profiles. Only three insurers currently offer annual or multi-trip products in New Zealand, and these often have lower maximum ages than corresponding single-trip policies, with some caps at 65 or 70. Most annual policies do not refund unused portions if travel plans change, beyond a standard cooling-off period of about 14 days after purchase.
Walsh said that for repeat travellers, the structure of annual policies can be suitable where customers understand the conditions. “If you’re flying internationally more than once a year, an annual policy eliminates the hassle and almost always saves money. But the trip duration cap is the detail most people miss – and it’s the difference between being covered and not on a longer trip,” Walsh said. The research notes that discussions with clients may need to address benefit limits, duration caps, age thresholds, and the differences between credit card and standalone cover, rather than focusing solely on premium levels at point of sale.
