Written by Tiana Lee-Collins
Reviewed by Adrian Taylor
Last updated 30/11/23
If you’re planning to travel around Australia, you’ll need a domestic travel insurance policy. This can be slightly different to an international travel insurance policy, so there’s a few things you should know:
Whether it’s a single trip or multiple trips to various locations, it’s a good idea for Aussies to take out a domestic plan for travel insurance. It can provide you peace of mind for any trips around Australia; instances where your policy may help include:
Before choosing a domestic plan for travel insurance, it’s important to understand exactly what coverage you need and what is available to you. Be sure to consider:
Our travel insurance expert, Adrian Taylor, has specialised knowledge on finding the right domestic travel insurance policy for your trip.
Always declare your pre-existing medical conditions when applying for a policy. While any medical or hospital expenses won’t be covered, you may be covered for cancellations if your condition impacts your ability to commence or continue your trip.
Your domestic policy may cover emergency assistance, cancellation fees, lost personal effects, personal liability, travel delays and more. Depending on your travel plans, you may also consider adding cover for cruises or ski holidays to your policy for an extra premium. Think about what level of cover you need to make sure you’re protected while on holiday.
Cruise cover is not offered as part of a domestic plan. If you’re taking a domestic cruise, you’ll need international travel insurance with cruise cover for your trip. However, unlike regular domestic trips, cruises can be protected by medical cover in the event you need medical treatment.
Travel insurance for Australians holidaying in Australia is important to consider. Domestic travel insurance provides you with cover for unexpected incidents or accidents while you’re travelling around Australia and can be a great safety net to ensure your holiday stays on track.
Some of these accidents could be if your plans are disrupted by lost or stolen luggage, flights cancelled due to natural disasters or severe weather, or your rental vehicle gets damaged.
Seniors under 99 years of age could still be covered by domestic travel insurance. While there may be reduced limits for your level of cover for Australians over 70, senior travellers can still have peace of mind knowing they may be covered for delayed flights, lost luggage and activity cancellations.
It’s important to remember that your coverage will depend on what insurance policy you take out. The following points are a guide on what domestic travel insurance could cover; however, always ensure you read your policy’s PDS.
Lost, damaged or stolen belongings
Whether it’s during transit or after you’ve arrived at your Australian destination, losing or having your personal items stolen is a common fear, particularly your credit card which can be a major inconvenience while you’re travelling. That said, a domestic plan can provide some financial defence when having to replace any lost, damaged or stolen items, up to the item limits listed in your PDS.
Cancellation cover
Your domestic policy could potentially reimburse you for trip cancellation fees, cancellation costs or lost deposits (depending on the policy you hold) if Australian travel trip delays and cancellations were caused by circumstances out of your control.
For example, if you book concert tickets in another city on a domestic trip, but your flight is cancelled and you incur additional expenses to fly on another airline to get to the concert on time, your travel insurance policy could cover some of your additional expenses.
Rental car insurance excess
When you hire a car, you’ll generally have to take out insurance from the rental company in case your vehicle is damaged. It’s worth noting that if an accident happens, you may owe an excess to the rental car company.
Domestic travel insurance could cover the cost of any rental vehicle excess. Keep in mind that rental car excess cover may come as an optional extra on your policy.
Domestic travel insurance policies generally don’t include cruise cover as a standard feature. However, it may be added as an extra for travellers specifically looking to go on a cruise holiday.
This addition could be crucial, as Medicare and hospital insurance won’t cover medical expenses for any injuries or accidents sustained while onboard a ship; this applies to cruises within Australian waters as well, not just international waters. Additionally, having cruise cover will ensure that any claims for cancellation fees for delayed or cancelled cruises can be assessed.
Every travel insurance policy has instances where you may not be covered. Common exclusions for domestic travel insurance policies are:
Adrian believes in educating customers so they can make the most of their time interstate without worrying about mishaps and financial losses. Whether you’re planning a road trip or a flight across the country, Adrian’s expertise in domestic travel insurance is first class.
As the General Manager of General Insurance at Compare the Market, Adrian Taylor has over 13 years’ experience in the financial services industry. Adrian specialises in customer experience and is dedicated to helping customers better understand insurance products so they can save money.
