Domestic travel insurance: Australia

Is domestic travel insurance worth it?

Yes, domestic travel insurance is almost always worth having. While international travel insurance is always a no-brainer because of the importance of medical coverage, most Aussies already have health cover through Medicare, private health insurance or OVHC.

However, travel insurance covers a lot more than just medical fees that are really useful for domestic travel. This can include flight delays and cancellations, lost or delayed luggage and rental car excess.

What does domestic travel insurance cover?

Delays and cancellations

30% of Australians have had issues with a low-cost carrier in the past 12 months, according to Finder research. Domestic travel insurance can cover you for cancelled or delayed flights.

COVID-19 expenses

Lots of domestic travel insurance policies now cover COVID-related expenses e.g. if you need cancel or rearrange your trip because you catch COVID.

Luggage and personal belongings

Comprehensive travel insurance policies cover lost and delayed luggage. This could be a really helpful benefit when travelling in Austrlia. According to Finder's latest 2023 research, almost 8% of Australians have lost personal items when travelling.

Domestic travel insurance and COVID-19

The pandemic is basically behind us, but most travel insurance companies still provider specific cover for COVID-related expenses. These can include:

• Trip rearrangement or cancellation costs if you, a fellow traveller or your host gets COVID and it impacts your trip
• Expenses if you're unexpectedly forced into quarantine during your trip
• A prepaid activity that's booked in Australia or New Zealand is shut down
• Extra child care costs if you get COVID

Good reasons to get domestic travel insurance in Australia

Yes, you've got Medicare but there are lots of other ways travel insurance can come in handy:

• Cancellations. This can include anything you've pre-booked – flights, accommodation, excursions and more.
• Luggage. Lost and delayed luggage has been more common since COVID. Travel insurance can cover essentials so your trip isn't disrupted.
• Hiring a car. Rental car excess cover is often included in your domestic travel insurance policy so you can avoid the pricey insurance at the dealership.
• Snow trips. Most brands offer ski insurance policies that will cover your equipment and reimburse you for unused lift passes if something goes wrong. There are similar policies for golfers too.

Our expert says: Health insurance isn't enough!

"Your health insurance will cover you for injuries while in Australia, but you still need travel insurance to deal with unexpected cancellations and lost luggage. One other common trap? Remember, you're not covered by Medicare on a cruise, even if it's only in Australian waters. Shop around - there are big differences in the costs of policies with similar inclusions."

Angus Kidman

Editor-at-large

Finding cheap domestic travel insurance

The best way to find a cheap domestic travel insurance policy is to compare policies from multiple companies - use the quiz at the top of this page.

When you're comparing, here are a few other ways to lower a domestic travel insurance premium:

• Take out a basic policy: Some insurers offer budget policies that only cover you for the most costly risks, like needing to cancel your trip or cut it short due to an emergency. Obviously, you won't be covered for as much, but if you're looking to save, this is the easiest way to do it.
• Increase your excess. You can reduce your premium by agreeing to pay a higher excess on your claims. Just don't increase your excess to a level you'd have a hard time paying.
• Bargain shop. Insurers often run special promotions. If you look hard enough, you'll find coupon codes, giveaways and loyalty incentives.
• Buy a joint policy. Many insurers will give you a discount if you and your travelling companion (be it friend or partner) take out a policy together. You'll each receive full benefits in most cases.
• Don't add options you don't need. Some people need extra cover, especially if their trip involves expensive hobbies like skiing. But if your flights and activities didn't cost much, you can go with a more no-frills policy instead.
• Shop around. It definitely pays to weigh your options. Once you've determined what you need, comparing policies becomes much easier. Review your options carefully and pay attention to each policy's features, limitations and exclusions.

Domestic travel insurance exclusions

Because of Australia's public healthcare system, Medicare, domestic travel insurance rarely provides medical cover. As well as this, insurers will provide you a list of circumstances that will void your cover. These are called exclusions. Here are some you may encounter:

• You didn't disclose a pre-existing condition. You'll be denied for claims related to pre-existing conditions unless your insurer approved it ahead of time. If you have an ailment, tell the insurer before signing up.
• You were careless with your belongings. Don't leave your stuff unattended. If it's stolen, the insurer won't replace it.
• You acted recklessly. Say goodbye to your claim if you're drunk or high, or if you break the law.
• You ignored medical advice. If the doctor says don't travel, you should probably listen. It's dangerous to your health and your claim.
• You cancelled your trip for no good reason. Your insurer won't reimburse you just because you changed your mind about travelling.

Frequently asked questions

• Is domestic travel insurance worth it?

  Flights in and around Australia can often be quite affordable, so it's tempting to assume it's worth the risk to travel uninsured. It really comes down to how much you're willing to risk. In the current post-lockdown environment, with flights frequently being cancelled and luggage being lost, it's a really good idea to get travel insurance even if you're only travelling within Australia.

• Does domestic travel insurance cover cruises?

  Cruises are not covered by domestic travel insurance. You aren't covered by Medicare or private health insurance for any medical-related losses while at sea, even if travelling between Australian ports, so you'll need an international policy. Learn more about cruise travel insurance.

• Does Medicare cover me in another state?

  Yes. Medicare will cover you regardless of what state you are travelling in. Because domestic travel insurance policies don't need to cover medical expenses, they are typically a bit cheaper than international policies. The only thing you might want to check is if your ambulance health cover includes all states.

• Do I have to be a certain distance from my home for cover to apply?

  In most cases, yes. Most insurers will require you to be at least 200km from your place of residence for your domestic policy to apply.

• Can credit card travel insurance cover domestic travel?

  Most credit cards don't offer cover for domestic travel, only for international trips. That said, there are some cards that will offer cover for cancelled flights, delays and missed connections. Find out more about how credit card travel insurance compares to standalone cover.

• Is Norfolk Island covered under domestic travel insurance?

  Medicare coverage extends to Norfolk Island, so a domestic travel insurance policy is what you'll need to cover you for other costs that crop up during your trip.

To make sure you get accurate and helpful information, this guide has been edited by Tim Bennett as part of our fact-checking process.

Written by

Gary Ross Hunter

Editor, Insurance

Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

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