Travel insurance costs are the most expensive category in Australia, with average premiums of $1,859 per year for an individual and $2,904 per year per child.
This means you’re likely to be spending more on your travel insurance policy than on the cost of your car insurance.
But what if you’re travelling to a country where the cost per kilometre is lower than in Australia?
It’s called the country option.
And this option is becoming increasingly popular.
There are many reasons for choosing an alternative to car insurance, and we’ve broken down the pros and cons of each, along with a guide to what you need to know to choose the right policy.
Find out more:What is an alternative?
An alternative is a type of policy that’s more flexible, and offers more choices than a car insurance policy.
You can choose a more specific travel policy, or choose to buy an individual policy.
For example, if you have a car and an apartment, a travel insurance plan would cover the cost for both of them, or a one-off policy for the apartment.
For a business, an alternative policy could cover the business’s travel expenses as well as its personal travel expenses.
An alternative can be for your children, or your spouse or partner, or someone with a chronic illness.
This is called a life option.
An option that offers no travel coverage, or covers no expenses at all.
This includes a personal travel policy.
A one-time travel policy that covers all your travel expenses over a specified period of time, usually two years.
The cost of an alternative is calculated according to the average cost of car insurance in the area you’re planning to travel to, and is usually based on the average value of the insurance premiums in the country you’re going to visit.
The cost of a travel insurer’s one-year policy is based on a similar formula.
If you’re not sure which travel insurance to choose, look at what travel insurance options are available for your country and the cost to travel in that country.
You may also be interested in:What are the pros of car or life insurance?
Car insurance is more expensive than life insurance.
While car insurance covers a range of vehicles, life insurance covers only one.
You must travel with the car to work, school or to the gym, and if you do so, you can’t change it without a new policy.
Life insurance covers injuries, sickness and disability, but not property damage.
It can be expensive.
If your car or business car is lost or damaged, your policy will cover the loss or damage for the following 12 months.
This doesn’t cover any lost or stolen property, such as a stolen car or broken glass.
If the cost you pay for car insurance is high, you’ll need to choose a different insurance provider, which can make the difference between having a higher or lower insurance bill.
If all your car costs are covered, you will be covered for all your business expenses, including petrol, insurance, maintenance, fuel, and vehicle registration fees.
If there’s no insurance, or if you’ve only paid for a small part of the cost, you may be able to make an extra payment to cover other costs.
You’ll be able use the extra payment when you apply for a business licence.
What is the difference in life and travel insurance?
Life insurance is usually paid by the individual or company.
It covers the loss of the life of a member of the household, but does not cover personal injury.
It covers property damage, but excludes other costs such as fire or theft.
Life insurers can vary, depending on the type of injury you sustain.
For some types of car accidents, such a collision can leave you with a claim, and it’s usually covered by a life insurance policy, rather than a vehicle insurance policy in the same country.
For others, such an accident can result in a claim for personal injury, which will usually be covered by the car insurance that covers the other part of your injury, such vehicle insurance.
If both your car and your business car are damaged, you could also be covered under a life insurer, but the insurance policy will only cover the damage incurred by the accident, not the property damage caused by the driver.
How do I get a travel policy?
To find out more about the options available to you, you should apply for travel insurance, usually through your insurer.
You can also look for a travel manager, which is a company that offers you a travel plan from a travel company.
They may offer a travel contract, or may have a website that allows you to compare policies.
Once you’ve found a travel agent, they’ll often tell you about a travel provider that they can recommend for you.
This will tell you how much you’ll pay for the insurance, but there may also include a range or limit on how much coverage you can get.
How to choose an alternative policiesWhen choosing an insurance provider to buy travel