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The Ultimate Guide to Travel Insurance in New Zealand

Duane Dormehl • January 6, 2025

When planning your next trip, whether within New Zealand or abroad, securing travel insurance is a critical step to protect your investment and ensure peace of mind. Travel is one of life’s greatest joys, offering new experiences and memories. However, unforeseen events can quickly turn a dream trip into a financial nightmare. This guide explores the importance of travel insurance, offers tips for selecting the best policy, and highlights how using a broker like DormFIN simplifies the process.

What Is Travel Insurance and Why Do You Need It?

Travel insurance provides financial protection against unexpected events that can disrupt or ruin your trip. From medical emergencies to flight cancellations, lost baggage, or trip interruptions, having the right coverage ensures you’re not left out of pocket.


Key Benefits of Travel Insurance

  • Medical Coverage: Covers costs for emergency treatment, hospitalisation, and medical evacuations, especially crucial abroad where healthcare can be expensive. For instance, medical evacuations from countries like the USA can cost up to $300,000 (Southern Cross Travel Insurance).
  • Trip Cancellation and Interruption: Reimburses non-refundable expenses if your trip is cancelled or interrupted due to illness, weather, or emergencies.
  • Lost or Delayed Baggage: Compensates for lost, stolen, or delayed luggage.
  • Personal Liability: Protects against claims if you’re held responsible for damages or injuries to others.


How to Choose the Right Travel Insurance Policy

Finding the best travel insurance requires careful consideration of your needs and circumstances.


1. Evaluate Your Travel Needs

Consider factors like your destination, trip duration, planned activities, and personal health. For instance, international travellers may require higher medical coverage, while adventure enthusiasts might need coverage for high-risk activities.


2. Assess Policy Features

Look for comprehensive coverage, including:

  • Emergency medical expenses
  • Trip cancellations or delays
  • Lost baggage
  • Accidental death
  • Optional coverage for adventure activities


3. Understand Exclusions

Policy exclusions can vary widely. For example, many travel insurance plans exclude coverage for pre-existing medical conditions unless specifically added. Similarly, adventurous activities or accidents involving alcohol may not be covered.


4. Consider Your Budget

While affordability matters, don’t compromise on necessary coverage. The average cost of travel insurance is 5% to 6% of your trip expenses (Forbes Advisor). A comprehensive plan might cost more upfront but can save significant expenses later.


5. Consult a Broker

Insurance brokers like DormFIN simplify the process by offering personalised advice, comparing multiple providers, and tailoring policies to your needs.


Common Myths About Travel Insurance

Myth 1: “I’m Healthy, So I Don’t Need Travel Insurance”

Even the healthiest travelers can face unexpected medical emergencies. A broken leg, food poisoning, or unforeseen accidents can lead to significant medical expenses.


Myth 2: “My Credit Card Covers Everything”

Credit card travel insurance can have limited benefits, such as lower coverage caps and exclusions for pre-existing conditions or high-value items.


Myth 3: “It’s Too Expensive”

Travel insurance can be affordable and customisable to fit various budgets. Investing a small percentage of your trip costs can save you thousands in case of an emergency.

Real-Life Scenarios Highlighting the Importance of Travel Insurance

Case 1: Medical Emergency Abroad

A New Zealander traveling to the US suffered a severe injury requiring hospitalization. Without travel insurance, their family faced medical bills exceeding $100,000 (NZ Herald).



Case 2: Activity Restrictions Can Lead to High Costs

A Christchurch real estate agent faced nearly $20,000 in medical bills following a scooter accident in Indonesia. Her travel insurance policy only covered scooter hires with engines up to 50cc, but she was riding a 125cc moped. This incident highlights the importance of understanding your policy’s specific terms and ensuring your planned activities are adequately covered (news.com.au).


Case 3: Delayed Baggage on a Business Trip

A business traveler experienced a three-day luggage delay. Travel insurance covered the costs of clothing and essentials, allowing the trip to continue without disruption.


Tips for Filing a Travel Insurance Claim

  • Document Everything: Keep receipts, medical records, and proof of trip disruptions.
  • Contact Your Insurer Immediately: Inform your provider as soon as possible about the incident.
  • Follow the Process: Submit all forms and documents promptly to avoid delays.

Final Thoughts: Travel Smart with DormFIN

Travel insurance is a small investment that provides significant financial protection. Whether you're planning a family vacation or a solo adventure, the right coverage ensures peace of mind.


Partnering with DormFIN makes finding the perfect policy easy. Their expert guidance and personalised solutions mean you’ll travel with confidence.



Don’t leave your travels to chance—protect your adventures with DormFIN Travel Insurance.

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