Domestic Travel Insurance

You wouldn’t go overseas without travel insurance. Here’s why it’s just as important for your Aussie trip.

Unless your entire Aussie holiday consists of a weekend at nana’s, you’ve probably sunk a lot of time and money into planning your trip. But even the smallest thing could ruin your plans: getting sick before you go, losing your luggage in transit, having your flights cancelled - and cost you a lot to boot. Getting domestic travel insurance can help give you peace of mind so you can relax knowing that you'll be covered when you hit the road.

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What does a typical domestic policy cover?

_{¹Source: Tick Top Domestic Travel Insurance Policy. Benefit amounts correct as of 25 May 2018. Not all domestic policies will cover all these benefits and for the same amounts. Always double check the PDS before buying a policy.}

Why do you need domestic travel insurance?

If you think back to every holiday you’ve ever been on, you can probably point to something that didn’t go as planned.

Your flight was double booked. Your kid came down with the flu mid-trip. Some knucklehead drove off after backing into your parked rental car.

Situations like these have knock-on effects that eat into your hard-earned cash. Domestic travel insurance can help you out when you're in a pickle. Consider these examples:

The airline damages your skis. Ski equipment is expensive. Most insurers offer ski policies that will cover your equipment and reimburse you for unused lift passes if something goes wrong. There are similar policies for golfers, too.

Your shopping holiday turns sour when a thief swipes your bags. Theft cover is a common feature in most policies, protecting both your money and belongings.

You have to cancel your trip but you’ve already pre-paid for loads of activities. Your insurer will reimburse you for pre-booked activities if you have a good reason for missing them. For example, if illness causes you to cancel your trip; if the activity provider goes bust; or if a delayed flight holds you back.

You get sick on a domestic cruise. Won't Medicare or private health insurance help? Not necessarily. Unless there’s a Medicare-approved doctor on board your domestic cruise (it’s not required that there be one), you’re responsible for your treatment costs. If it's serious, it can cost thousands of dollars...it's best to avoid the drama by taking out cruise insurance. (Paradoxically, some insurers only market cruise insurance as an international product, but it achieves the same purpose.)

You’re headed to a wedding and your flight gets cancelled. In most cases, the airline is responsible for rebooking the cancelled flights (often taking their sweet time in the process). But if you’re about to miss a very important event, some insurance policies will let you make your own last-minute arrangements and reimburse you later.

You’re headed to a festival but the airline loses your luggage. A good policy will give you a daily allowance for necessities until you get your luggage back. And if it never arrives? The right policy will replace it all, including all those chic festival outfits.

Local hooligans key your rental car. Without insurance, your rental car excess could be as much as $3,000 or more. Domestic travel insurance can reduce this to much more manageable levels. Of course, you could get car rental excess insurance from the rental company. But only if you want to pay more and lose out on all the other benefits of your travel policy. See how it compares below.

Shouldn't I just get car rental excess insurance?

Sure you could get car rental excess insurance by itself, but that will only cover your rental car, and the cost is often much higher*. To get an idea of the difference, have a look at the cost of domestic insurance vs. insurance that only covers your rental car below:

_{*The cost of domestic travel insurance is an average based on quotes for a one-week trip. The cost of car hire excess is based on an average online cost for one week, with quotes from VroomVroomVroom. These prices are not indicative of all policies and are to be taken as a rough guide. Prices are correct as of January 2018.}

How else can a domestic policy help?

The benefits of a domestic policy don’t end there. Many policies also offer the following benefits as standard:

• If you have to cut your trip short. If a major incident makes you cut your trip short (e.g. you get injured, someone close to you is hospitalised, your home is destroyed), you could be reimbursed the cost of getting back home and even the cost of resuming your trip after you've taken care of business.
• If an injury you received from travelling continues to impact your life. Medicare and health insurance will take care of the injury. But what about everything else? The right policy will help with loss of income and disability, and may even pay your family a benefit if you die while travelling.
• You accidentally hurt someone or damage something. Most policies have legal liability protection that will kick in if you've unintentionally damaged someone or something.What does a domestic policy normally cover?

What’s not normally covered under your policy?

So far, so good. Now that you got what you need, let's make sure you don't void your cover. All insurers will provide you a list of circumstances that will void your claims. 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 on the dotted line.
• 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 “just because”. Your insurer won't reimburse you just because you changed your mind about travelling.

How much does domestic travel insurance cost?

The cheapest cost of a week-long domestic trip on finder for a 35-year-old is around $28*, or less than 4 bucks a day. For the price of a cup of coffee, you get covered for a whole lot, including $1500 in rental car excess insurance, $5000 in cancellation cover, $5 million in personal liability and $10,000 for accidental death cover. You can probably find an even cheaper policy, but it won't cover as much.

What affects the price?

• The length of your trip
• How many people need cover
• Those people’s ages
• Whether or not you add optional cover like ski cover, cruise cover or rental car excess insurance
• If you decide to cover a pre-existing condition that isn’t included in the standard policy

_{*This price was for a 7-day trip on 20 April 2018 and including rental car excess cover. Use the quote engine for the most accurate pricing.}

How to save money on your policy

Some say that if you can't afford travel insurance, you can't afford to travel. That sentiment may ring true, but that doesn't mean you should pay more than you need to for the appropriate policy. You might be surprised at how affordable domestic travel insurance can be. All it takes is for you to carefully consider your travel needs and then to compare your options accordingly.

Here are a few simple ways you can reduce your domestic travel insurance premium:

• Buy a bare-bones 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.

Is it worth it for domestic flights?

Flights in and around Australia can often be quite affordable, so it’s tempting to assume it's worth the risk to travel uninsured. To test this out, let’s take a look at a case study.

Sarah is due to fly from Sydney to Perth for a two-week holiday in southwest WA, but just before she leaves, she breaks her leg and is forced to cancel her trip. Under normal circumstances, she’d be out the $560 she paid for her non-refundable round-trip ticket.

Luckily she had the foresight to purchase a domestic travel insurance policy for less than six bucks a day, and this entitled her to a full refund of the $560 fare. That’s a $480 net gain. Not too shabby!

To top it off, Sarah’s policy would have also covered a host of other cancellation fees and lost deposits had she also booked those. These include:

• Pre-booked accommodation
• Rental car hire
• Pre-booked tours

So all of that would be refunded too.

How much will domestic travel insurance cost me?

_{Cost of domestic travel insurance is an average based on policies for a one-week trip, for a 32-year-old traveller. Cost of the flight is based on the average online cost of a return flight from Sydney to Melbourne on 10 January 2018.}

How does travel insurance compare to the cover offered by my airline?

You may be aware of the fact that when you book flights for your holiday, you also have the option of purchasing travel insurance from your airline. However, airline travel insurance policies typically tend to offer a much lower level of cover than policies purchased direct from insurers. Check out the graph and table below to see just how airline cover compares with standalone travel insurance.

Airlines do have the option to purchase travel insurance through them. However, it's easy to see that the level of coverage is noticeably different when taking out an independent domestic travel insurance policy. The following chart highlights how airline cover sizes up against standalone travel insurance.

Jetstar vs Tiger vs Domestic Travel Insurance

Note: Cover amounts last checked 2016. Domestic travel insurance cover amounts are for illustrative purposes only and is not representative of all products in the market.

What will I actually be paid if my trip is cancelled?

Domestic travel insurance offers a cancellation cover to cover a range of pre-booked expenses in the event that you need to cancel your trip due to unforeseen circumstances.

What cancellations will you usually be covered for?

Under what circumstances can a trip be cancelled?

Traps to watch out for when choosing a domestic policy

Every year there are stories of people left devastated after learning their domestic travel insurance policy was unable to provide a benefit for their claim because it fell outside of what was covered in their policy. Be wary of these traps and pitfalls when searching for domestic travel insurance to cover your next Australian holiday:

• Underinsurance. Cost is always a consideration when buying travel insurance but looking to cut costs at every turn can lead you into trouble. Underinsurance could have significant financial consequences if something goes wrong on your trip, so make sure any policy you choose provides sufficient cover.
• Choosing the cheapest policy. While it is important to find a competitively priced policy, basing your purchase purely on price may leave you drastically under-protected. Research the policy features on offer and know what you are covered for. Cheaper cover will often have higher excess charges and greatly reduced benefit levels.
• Buying cover from an airline or travel agent. Buying travel insurance through an airline or travel agent when you book your holiday may be convenient, but it’s also usually unnecessarily expensive. Many airlines and travel agents add substantial commissions on top of the policy price, so you can save a lot of money if you buy cover directly from an insurer instead.
• Not reading the fine print. A travel insurance PDS is not what you’d call an entertaining read, but it is something you should examine closely before buying a policy. Look at the benefits, cover limits and exclusions to ensure that you know exactly what your policy does and does not cover.
• Per-item limits. It is crucial to know the conditions for payments for lost luggage and expensive items. While the policy may state "up to $5,000 cover for lost items", there may only be a benefit of $600 per item provided. These sub-limits are often applied to expensive items.
• Cover for the activities you plan to do on your trip. If you are participating in particular sports or activities on your trip it is important to find out whether or not they will be covered.

I travel often - should I get an annual multi-trip policy?

Searching for annual travel insurance to cover your trips within Australia? If you’re a frequent traveller, purchasing an annual multi-trip policy can be much more cost-effective than buying a separate policy for each trip you take.

Annual multi-trip domestic travel insurance provides cover for all the holidays you embark upon within Australia across a 12-month period. There’s usually a maximum limit on the length of each individual trip, but otherwise these policies provide all the benefits you would expect in an ordinary travel insurance policy.

• What are the benefits of taking out an annual policy? An annual policy can offer both convenience and great savings, as you will only need to apply for cover once and have the peace of mind that you are covered for all domestic journeys you take in any 12-month period. This option can be much cheaper than applying for multiple policies over the course of a year.
• Who should consider an annual domestic travel insurance policy? An annual policy is only really suitable for people that travel 3 or more times per year. If you only need cover for 1-2 trips, it is probably more cost-effective for you to take out a single-trip policy. Most insurers will not provide annual policies to travellers over 60 years of age, as they need to assess any health risks that they may present. Annual policies are also a great option for people that need to travel last minute for business.
• Can I get an annual policy to cover both international and domestic trips? Yes, it is possible to get an annual policy that will cover both trips within Australia and trips overseas. This could be a good option if you're looking to take a cruise trip but stopping off at Australian ports, your work sees you regularly travel both interstate and abroad or if you just love to get away both within Australia and overseas. It is important to note that not all insurers will cover both domestic and international trips so make sure you check the terms and conditions.

How can I get insurance for my caravan holiday?

Planning an Aussie holiday with your caravan in tow? If so, you obviously won’t need the cover for flight cancellation costs provided by domestic travel insurance, so is it worth your while purchasing a policy?

The answer really depends on what you have planned for your holiday. If you’ve pre-booked a lot of your holiday expenses – caravan sites, tours, ferry tickets (eg Spirit of Tasmania) etc – cancellation cover can still be useful. Other benefits, such as cover for theft, stolen or damaged personal items and trip disruption costs, could also come in handy, so it’s up to you to decide whether you need cover.

At the time of writing, there are no Australian insurers that offer a custom caravan holiday insurance product. Because of this, it’s also important to examine the cover provided by your caravan insurance policy. Comprehensive caravan insurance covers loss or damage caused by accidents, fire, storm, theft, malicious damage and more, so it’s worth reviewing your cover before hitting the road.

How to choose domestic travel insurance

How can you find the right domestic travel insurance policy at the right price? Follow a few simple steps:

1. Think about the cover you need. Do you want cover for the essentials only or ultimate peace of mind? Do you need to add any optional extras, such as cover for adventure sports or high-value personal items?
2. Consider your budget. How much do you want to pay for cover? Can you vary your excess to lower your premium, or take advantage of any other discounts available?
3. Get quotes. Once you have a better idea about the level of cover you want, obtain quotes from multiple insurers. This will help you work out how much cover costs and which insurers can help you save money.
4. Compare policies. Take a closer look at the benefits, limits and exclusions of any policy you are considering. This will allow you to work out which policy provides the best value for money and is the best choice for your Australian holiday.

What if I'm not an Australian resident?

Not from around here? No worries. With so many non-permanent residents joining our friendly communities all around Australia, there are travel insurance plans available for non-residents of Australia to make sure that you too are protected for everything you need for the entire duration of your visa.

While the exact eligibility requirements for a non-resident travel insurance policy will depend on your chosen insurance provider, most insurers allow travel insurance within Australia for non-residents if you are planning to spend the majority of your trip within Australia.

Generally, you will need to be travelling to Australia on either one of these following visas:

If you are already living within Australia, you may be required to show proof that you have private health insurance cover or Medicare membership in place.

Find out more about non-resident travel insurance

Common questions when it comes to domestic cover

• Q. I’m already covered by Medicare...is domestic travel insurance really worth it?

  A. You might already be covered by Medicare or private health insurance but what about cover for cancelled flights, lost luggage, car rental excess charges. These are just some of the things a domestic policy can cover. With a two-week domestic policy starting at as little as $35*, it’s a little expense for great peace of mind.

• Q. Will I be covered by Medicare if I go to see a doctor in another state?

  A. Yes. Medicare will cover you regardless of what state you are travelling in.

• Q. How does it compare in price to cover from an airline?

  A. Airline baggage and ticket cancellation cover usually starts from around $15. For only about $10* more, domestic travel insurance can cover you for a whole range of other losses.

• Q. I am over 70. Can I take out cover?

  A. Yes. Most insurers will cover you if over 70 years of age. In some cases you may be required to submit details of your medical history in order to take out cover.

• Q. Can I extend my policy?

  A. Yes. You can contact your insurer while the policy is still active to request an extension. You may be required to provide reasoning for extension of your policy.

• Q. How long will it take to claim?

  A. This may vary between providers though generally claims can be settled within 10 days of the claim being made. In some cases the insurer may request further information, which may delay the claim further.

• Q. Can I wait till I return home from my travels before claiming?

  A. Yes. Provided it is within the required timeframe (usually between 30-60 days). That said, it is usually much less hassle if you just contact the insurer immediately so you know if you need to provide any further evidence.

• Q. Am I covered by home and contents insurance for lost items?

  A. Some home and contents insurance policies will provide you with cover for lost items even if you are travelling within Australia. If this is the case, your Home and Contents insurer may be liable to pay a portion of the claim.

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

  A. 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.

• Q. Cover on my credit card enough?

  A. 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 under "inconvenience cover". Find out more about how credit card travel insurance compares to standalone cover.

• Q. Would I be covered for cancellation if I am unable to travel for work reasons?

  A. Trip cancellation for work reasons may be covered in the event of retrenchment or if you are required to work because you are part of an emergency service i.e. defence forces or fire-fighter.

• Q. I’m taking a cruise in Australian waters...is domestic travel insurance enough?

  A. You will not be covered by Medicare or Private Health Insurance for any medical related losses while at sea, even if travelling between Australian ports so it’s definitely worth taking out an international policy. Learn more of the benefits of cruise travel insurance.

• Q. Is Norfolk Island covered under domestic policies?

  A. There are no Medicare benefits for Norfolk Island so you will need an international policy. As an example, for the provider Covermore, this would fall under region Indonesia, South West Pacific, Norfolk Island and New Zealand.

• Q. Will my credit card cover me for domestic flights?

  Depending on the card, you are covered for cancellation of domestic travel arrangements if you must cancel for reasons outside of your control. Reasons include:

  • If you, or a relative passes away, becomes seriously injured or becomes seriously ill
  • You are quarantined
  • Participating cardholder or spouse is unexpectedly retrenched

  What you need to be aware of:

  • Travel arrangements must be booked using the credit card
  • A minimum spend on travel arrangements with card is required for cover to be activated
  • The excess tends to be higher than standalone policies with no option to remove the excess charge. The excess may end up being more than the price of your flight!
  • Personal computers, electronic equipment, jewellery or watches checked-in as luggage is usually not covered
  • Cover is usually not provided for business-related trips

• Q. Will my airline cover me if I have to cancel my flight for reasons outside of my control?

  • No, this is where it is important to consider travel insurance

• Q. Will my airline reimbursed my if my flight is cancelled or delayed?

  • If your flight is delayed or cancelled by the airline, they will attempt to rebook you on the next available flight on their services at no extra cost.
  • Alternatively, if the airline is unable to rebook you on the next flight, the applicable fare will be refunded
  • The airline will not be responsible for any additional cost that you incur as a result of cancellation. This is where travel insurance comes in

  The airline will not be responsible for any additional cost that you incur as a result of cancellation. This is where travel insurance comes in.

• Q. Will travel insurance cover additional expenses?

  • Most policies will cover additional meals and accommodation expenses following trip delay if your journey is disrupted due to reasons beyond your control

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_{*$23 quote price based on 40-year old traveller going to Melbourne for 7 days on the 20th of February 2018. Prices are indicative only and subject to change based on your individual details - please use the quote engine for the most accurate pricing.}

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