Yes, domestic travel insurance is worth it. A holiday in Australia can still get interrupted, flights can get cancelled, and it can all be covered from about $4.33 a day.
Australia is the lucky country, but domestic travel insurance covers you when things go wrong.
If your medical costs are covered by Medicare, domestic travel insurance gets a lot cheaper.
You can get solid cover for less than $5 a day - it doesn't have to break the bank.
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.
Luggage and personal belongings
Comprehensive travel insurance policies cover lost and delayed luggage. This could be a really helpful benefit when travelling in Austrlia. Almost 1 in 4 Australians, equivalent to 5 million people, suffered a travel mishap while abroad in the past 12 months, according to a July 2024 Finder survey. The research shows 15% endured travel delays, while 5% lost personal items. Travel insurance can reimburse you for this and more.
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."
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.
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.
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.
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.
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.
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.
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.
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.
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To make sure you get accurate and helpful information, this guide has been edited by Tim Bennett as part of our fact-checking process.
Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio
Gary Ross's expertise
Gary Ross has written 631 Finder guides across topics including:
looking for insurance to cover cancellation of hotel booking if it is a necessity to do so
Finder
JamesApril 2, 2022Finder
Hi John,
Most comprehensive policies cover the costs of cancellation if it is due to unforeseen circumstances, such as illness or a death in the family.
There are also some providers that have added additional cover for some situations linked to COVID-19. You can see some examples of travel insurance that covers COVID in our guide.
There are a number of instances you won’t be able to claim for, such as if you’re unable to travel due to general travel restrictions such as lockdowns. Also, you can’t claim if you change your mind or book your travel after there’s been a warning for your holiday destination.
Regards,
James
davidFebruary 12, 2022
best domestic travel policy including cancellation for seniors on organized tour
Finder
JamesMarch 2, 2022Finder
Hi David,
We can’t say what the ‘best’ option is, as the right travel cover will depend on your individual circumstances.
However, you could look at our guide to seniors travel insurance and compare a range of policy features side-by-side.
Don’t forget to review the provider’s PDS before committing to any insurance.
Regards,
James
SusanJanuary 9, 2019
I’m trying to find which travel insurers will cover the 2 of us for an Australian interstate trip that has a flight to Bali in it. Is there just one policy I can purchase and with whom?
Thank you,
Susan
Finder
JeniJanuary 12, 2019Finder
Hi Susan,
Thank you for getting in touch with Finder.
On this page you’re looking at you may enter all your destinations to start comparing your options. I suggest that you contact your chosen insurer to discuss your coverage and for further assistance on getting travel insurance to cover you and your companion.
Please feel free to reach out to us if you have any other enquiries.
Thank you and have a wonderful day!
Cheers,
Jeni
BarbaraAugust 7, 2017
I am going to rent a hire car. All the extra costs in case of an accident make it very expensive. Can I take out domestic insurance to help cover these extra costs.
JonathanAugust 7, 2017
Hello Barbara,
Thank you for your inquiry.
Please feel free to check your travel insurance car excess options. Use our comparison table on that page to find the right policy for you. Once you’re done comparing, select the “Get Quote” button to learn more.
Please review the fine print and the requirements for cover.
Hope this helps.
Cheers,
Jonathan
JanJuly 2, 2017
Is Christmas Island considered to be domestic?
Finder
RenchJuly 2, 2017Finder
Hi Jan,
Thanks for your inquiry.
Christmas Island is considered as international. You may check our page about international travel insurance to learn more about your travel and how you can find the right policy for you.
InsureandGo Travel Insurance can save you time with a comprehensive range of policies that are easy to digest and understand. Its policies include winter sports coverage plus both single and multiple trip policies.
A guide to understanding cruise insurance - why you need it, what's covered, and what's not.
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looking for insurance to cover cancellation of hotel booking if it is a necessity to do so
Hi John,
Most comprehensive policies cover the costs of cancellation if it is due to unforeseen circumstances, such as illness or a death in the family.
There are also some providers that have added additional cover for some situations linked to COVID-19. You can see some examples of travel insurance that covers COVID in our guide.
There are a number of instances you won’t be able to claim for, such as if you’re unable to travel due to general travel restrictions such as lockdowns. Also, you can’t claim if you change your mind or book your travel after there’s been a warning for your holiday destination.
Regards,
James
best domestic travel policy including cancellation for seniors on organized tour
Hi David,
We can’t say what the ‘best’ option is, as the right travel cover will depend on your individual circumstances.
However, you could look at our guide to seniors travel insurance and compare a range of policy features side-by-side.
Don’t forget to review the provider’s PDS before committing to any insurance.
Regards,
James
I’m trying to find which travel insurers will cover the 2 of us for an Australian interstate trip that has a flight to Bali in it. Is there just one policy I can purchase and with whom?
Thank you,
Susan
Hi Susan,
Thank you for getting in touch with Finder.
On this page you’re looking at you may enter all your destinations to start comparing your options. I suggest that you contact your chosen insurer to discuss your coverage and for further assistance on getting travel insurance to cover you and your companion.
You may want to read more about getting travel insurance for your Bali trip.
I hope this helps.
Please feel free to reach out to us if you have any other enquiries.
Thank you and have a wonderful day!
Cheers,
Jeni
I am going to rent a hire car. All the extra costs in case of an accident make it very expensive. Can I take out domestic insurance to help cover these extra costs.
Hello Barbara,
Thank you for your inquiry.
Please feel free to check your travel insurance car excess options. Use our comparison table on that page to find the right policy for you. Once you’re done comparing, select the “Get Quote” button to learn more.
Please review the fine print and the requirements for cover.
Hope this helps.
Cheers,
Jonathan
Is Christmas Island considered to be domestic?
Hi Jan,
Thanks for your inquiry.
Christmas Island is considered as international. You may check our page about international travel insurance to learn more about your travel and how you can find the right policy for you.
I hope this helps.
Cheers,
Rench