What are the factors affecting travel insurance premiums?

Travel insurance premiums are influenced by several key factors, including your age, destination, trip length, and the level of cover you choose.

Understanding how pricing works can help you make informed decisions, avoid overpaying, and ensure you're properly protected when you travel

Key takeaways

Table of Contents

Why do travel insurance premiums vary so much?

Solo, family, or group travel

Is it worth paying more for comprehensive cover?

Conclusion

FAQ's

Why do travel insurance premiums vary so much?

Just like airfares or hotel rates, travel insurance premiums change based on your trip details and personal risk profile.

Two people travelling to the same destination may pay very different prices depending on:

• Age
• Your Destination
• Length of stay

Travel insurers calculate your premium based on how likely you are to claim and how expensive that claim might be.

Your age

Age is one of the biggest factors affecting your travel insurance premium.

Older travellers are statistically more likely to need medical care, which increases the potential cost to the insurer.

• Travellers under 40 usually pay the lowest premiums
• Travellers over 60 may see increased rates, especially for international trips
• Some policies have age limits or reduced cover for older travellers

Santam offers emergency medical cover for travellers up to 85, with options to declare and insure pre-existing conditions.

Your destination

Where you're going affects how much you'll pay. Destinations with high medical costs, increased risk of natural disasters, or political instability may come with higher premiums.

Examples:

• A trip to Europe or North America costs more to insure than a trip within Southern Africa
• Destinations with poor healthcare infrastructure may increase repatriation risk and cost
• Countries with visa insurance requirements (like travel insurance for Schengen countries) require minimum cover levels

Tip: Make sure your policy clearly states that it covers the full region, not just one country.

Length of your trip

The longer you travel, the more you'll pay simply because there's more time for something to go wrong. Policies are often priced in time bands (e.g. 1-14 days, 15-30 days, etc.).

• A 7-day trip will cost less than a 30-day or 60-day trip
• Premiums can increase significantly for long stays or gap years
• Some insurers cap trip length or require special policies for extended travel

Santam Travel Insurance offers flexible options for both short trips and long stays, with clear cover duration subject to policy terms.

Type and level of cover selected

Basic policies cost less but cover fewer risks. Comprehensive cover is more expensive but far more valuable if something goes wrong.

Santam's travel insurance policies include comprehensive options without needing to pay for multiple upgrades.

Optional add-ons and upgrades

If your trip involves high-risk activities or unusual situations, you may need extra cover.

Common add-ons that increase your premium:

• Adventure or winter sports (e.g. skiing, hiking, scuba diving)
• Pre-existing medical condition cover
• High-limit cancellation or trip curtailment cover
• Group tour protection

With Santam, winter sports cover is already included, ideal for European or Alpine holidays.

Your health and medical history

Pre-existing conditions don't always increase your premium but may need to be declared.

In some cases, additional screening or premium loading applies if there's a higher medical risk.

• Stable, well-managed conditions may be covered at no extra cost
• Severe or recent conditions may require added premiums or be excluded
• Failing to declare a known condition can invalidate a claim

Santam offers cover for pre-existing conditions, with emergency hospitalisation up to age 69 on comprehensive plans.

Solo, family, or group travel

Travelling as a group can sometimes reduce your per-person cost. Many insurers offer family or group discounts.

• Group bookings for schools, sports tours, or companies can receive custom rates
• Children under a certain age may even be included for free

Santam offers group policies, and children under 21 can be included on their parents' cover at no additional cost.

Is it worth paying more for comprehensive cover?

In most cases, yes. While basic policies may meet minimum visa or medical requirements, they often leave out the cover you'll actually need if things go wrong.

Here's what you might miss with the cheapest policy:

• Trip cancellation or curtailment cover
• Delayed or lost baggage compensation
• Missed connection and travel delay benefits
• Personal liability cover
• Emergency repatriation
• Global assistance when you need it most

A few hundred rand more can save you thousands in claims or travel disruption costs.

Conclusion

Travel insurance premiums vary depending on who you are, where you're going, and how much cover you need. Understanding the key pricing factors like age, destination, trip length, and cover level can help you choose a policy that fits your trip and budget.

With Santam Travel Insurance, you get flexible options, comprehensive benefits, and trusted local support so you're covered with confidence, no matter where you go.

Ready to protect your next trip? Get a quote from Santam Travel Insurance today and find the cover that's right for you.