Domestic Travel Insurance: Is It Worth It?
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Domestic Travel Insurance: Is It Worth It?

Katie Douglass

Katie Douglass

15/01/2021 • 4 minute read

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With international travel still a far away possibility due to the COVID-19 pandemic, many Aussies are instead looking to travel in their own backyard. According to a Flight Centre agent survey:

60% of customers are looking to travel in Australia with an even split between those wanting to go away in their own state and interstate.

With domestic trips on the rise, especially as borders open across the country, Aussies might be wondering if it’s worth getting domestic travel insurance.

Seeing as the main reason we take out travel insurance is for medical expenses, it’s understandable if you think it isn’t necessary in Australia since we’ve got Medicare or private health cover. However, what happens if you lose your luggage, your flight gets cancelled, or belongings get stolen? This is where domestic travel insurance could come in handy.

Below, we give a rundown of what domestic travel insurance is, what it does and doesn’t cover, and whether you really need it.

What is domestic travel insurance?

Domestic travel insurance is an insurance product that covers you and your belongings while you are travelling in Australia. Depending on your policy, domestic travel insurance will generally cover you for emergencies, unforeseen incidents, or unexpected accidents.

What does domestic travel insurance cover?

What is covered under domestic travel insurance will depend on the policy taken out but it will generally cover the following:

Cancellation or delay fees

Let’s say you’ve bought tickets to a sports game in another city. However, your flight gets cancelled and you’re unable to travel. This is where domestic travel insurance could cover part or all of the cost of cancellation fees or lost deposits in the event of unforeseen or unexpected events.

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If your flight is cancelled or delayed as a result of the airline’s fault, your travel insurer won’t cover the cost of cancelling flights. However, the cost of accommodation, meals, and travel costs could be covered.

Lost, stolen, or damaged luggage and belongings

Regardless of whether you’re overseas or in your own backyard, there’s nothing more stressful than when your belongings get lost, stolen, or don’t turn up. Domestic travel insurance can cover the cost of your baggage and personal items if they are stolen or damaged.

Rental vehicle excess

Given the vastness of our glorious country, it’s pretty handy to rent a vehicle to get around on your trip. There is always the risk of your hire car getting damaged or stolen. Domestic travel insurance can provide cover for some or all of the excess payable in the case of theft and damage to the vehicle.

Personal liability

Domestic travel insurance policies will generally cover you if you’re found to be legally liable for accidental injury or damage caused to another person or their property while on your trip.


Going on a skiing or golfing trip? If you’re bringing equipment with you on your holiday, many domestic travel insurers allow you to include cover for sporting equipment or gear in your policy. In addition, if you’re going on a business trip and bringing a laptop or tablet, you could get cover for business equipment also.

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As always, it’s important to read the Product Disclosure Statement (PDS) of each policy to make sure it’s the right coverage for your needs and financial circumstances.

What doesn’t domestic travel insurance cover?

As we have a public healthcare system in Australia, domestic travel insurance won’t cover you for medical expenses while travelling in the country. Other usual exclusions include:

  • High-risk activities (such as bungee jumping or hiking)
  • Known events
  • Not disclosing pre-existing medical conditions prior to purchasing policy
  • Participating in reckless behaviour under the influence of alcohol or drugs
  • Breaking the law

How much does domestic travel insurance cost?

While the price of domestic travel insurance will vary between policy to policy, the average cost in Australia can range from as little as $25 up to $700. Below is a guide by CHOICE that shows the average price for people travelling in Australia for 7 days:

Travellers Average Range
Single $49 $27 – $87
Family $87 $47 – $166
Couple aged 60 $98 $49 – $202
Couple aged 65 $110 $60 – $233
Couple aged 70 $141 $61 – $312
Couple aged 75 $206 $61 – $679

Source: CHOICE

So, is it worth getting domestic travel insurance?

If you’re spending a lot of money on your trip, bringing sports or business equipment, hiring a vehicle, booked flights and tickets for an event, it would be a good idea to consider domestic travel insurance. Plus, it can give you peace of mind if anything unexpectedly goes wrong on your holiday.

On the other hand, if you’ve bought cheap flights and accommodation, it might be best to claim from the airline and accommodation provider instead of taking out domestic travel insurance.

To sum up what we’ve discussed so far, here’s some pros and cons that come with taking out domestic travel insurance:

Pros Cons
Peace of mind if anything unexpectedly goes wrong Exclusions will apply and might not cover everything you want
Provides financial safety net if flights/interstate events are cancelled, luggage and belongings get stolen or lost Cost might not be in your budget
Provide cover for business and sports equipment as well as rental vehicle excess
Save money in the long-run if anything goes wrong

Want to learn more about travel insurance?

Discover our latest articles on all things travel insurance.

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Oiyo is a consolidated online resource, we are not financial advisors. We work with a range of industry professionals and compliance check our articles to ensure factual accuracy. However, we do not provide professional financial advice. Consider seeking independent legal, financial, taxation or other advice to check how the information and ideas presented in this article relate to your unique circumstances.

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Katie Douglass

Written by Katie Douglass

Katie Douglass is the Communications Manager at Oiyo and a writer. In recent years, Katie's work has appeared in publications such as Marie Claire, InStyle, and THE ICONIC. She has a Bachelor of Creative Industries in Fashion Communication & Journalism from the Queensland University of Technology. At Oiyo, Katie is responsible for overseeing editorial strategy.

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