Domestic travel insurance: Australia

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.

Additional options

Cruise cover

Snow and ski cover

Adventure sports

Domestic travel insurance and COVID-19

Lots of domestic travel insurance policies cover 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

Here are some brands offering insurance for domestic trips

Brand	COVID related cancellation/rearragements	Cooling off period	Apply
	$5,000	21 days	Get a quote
	$5,000	21 days	Get a quote
	$5,000	21 days	Get a quote
	$5,000	14 days	Get a quote
	$5,000	21 days	Get a quote
	$4,000	21 days	Get a quote
	$2,500	14 days	Get a quote
		14 days	Get a quote
	$5,000	14 days	Get a quote
		14 days	Get a quote
		14 days	Get a quote
	$3,500	21 days	Get a quote
	$5,000	21 days	Get a quote
	You select the limit	14 days	Get a quote
	$10,000	21 days	Get a quote
	$5,000	21 days	Get a quote
	$2,500	21 days	More info
	$5,000	14 days	More info
		14 days	More info
	Limit chosen	14 days	More info
	$2,500	21 days	More info
	$2,500	21 days	More info
	Limit chosen	14 days	More info
	$15,000	14 days	More info
	$15,000	14 days	More info

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.

Compare domestic travel insurance

There are loads of domestic travel insurance policies to choose from. While most cover similar situations, you will find some differences with price and benefit limits. It's also often the case that certain benefits are automatically included or offered as add-ons.

Here is a list of some of our partners and how their domestic policies compare. The policy cost is based on a hypothetical 7-day trip taken by a 28-year-old traveller between 1 and 7 February 2023.

How to find the best domestic travel insurance

The best domestic travel insurance policy is the one that offers high benefit limits for the situations that matter most to you and also covers you for a wider variety of situations.

Here are some ways you can identify which policy is the best one for you:

• What are the benefit limits? A benefit limit is the maximum amount of money you can be repaid for any specific area of cover. For many travellers, the most important areas of cover will be trip cancellation and lost luggage. Look for policies with unlimited cancellation cover and enough lost luggage cover to replace all of your luggage and personal belongings if someone stole them or the airline lost them.
• Are you going to a wedding or other special event? If a transport delay will cause you to miss a special event (such as a wedding, funeral or 50th wedding anniversary), the best policy will cover your expenses to make last-minute arrangements to be there on time. Other policies might pay you back for some of the money you spent on the event if you miss it, but they won't do anything to get you there on time.
• Are you renting a car? If you take out car insurance on your rental car, your out-of-pocket expenses (or your excess) can run into thousands of dollars if you cause an accident. Rental car excess insurance will help you pay for that. Most policies offer this, but the best policy will be the one that offers you cover for the excess amount of the vehicle, no more or less. You can find out your car hire excess before or when you book your rental car.
• Does it automatically cover special activities? Many policies will make you pay extra if you want to be covered for riskier activities such as skiing, motorcycle riding and cruising. If you will be doing any of these activities, the best policy will cover them automatically or at very little extra cost.

How to find cheap domestic travel insurance

Finding a cheap domestic travel insurance policy shouldn't be difficult. 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.

What's not covered with domestic travel insurance?

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.

Meet our travel expert Angus Kidman

Angus Kidman is the international editor-at-large at Finder. He's an award-winning journalist, avid travel enthusiast and passionate frequent flyer. Angus appears regularly on Sunrise, Today, The Project, Seven News and other TV and radio shows to share his expert tips.

Angus's top domestic travel insurance tips

• 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.

Why you can trust Finder's travel insurance experts

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We're experts

We've researched and reviewed almost every travel insurer on the market as part of our Finder Awards and our in-house experts regularly appear on Sunrise, 7News and various news publications.

We're independent

Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of travel insurance brands, making it easier for you to find a good deal.

We're here to help

Since 2014, we've helped over one million people find travel insurance by explaining your options simply. We'll never ask for your number or email to see prices. We're here to help you make a decision.

Frequently asked questions

• Will I be covered by Medicare if I catch COVID-19 on my trip?

  Most treatments will be covered by Medicare but travel insurance can help with other expenses.

  This could be the cancellation costs of your trip because you've been quarantined or maybe you have to pay for another hotel because the person you were supposed to stay with has been put into isolation.

• 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.

• Is medical evacuation and repatriation covered by domestic travel insurance?

  Only a select few brands will cover you for medical evacuation by road or air if you need it in Australia. Our researchers found that Travel Insurance Direct will cover up to $50,000 in expenses for medical evacuation or repatriation on home turf. If you're cruising on Australian waters and want to be covered for emergency medical evacuation, you'll typically need to purchase a comprehensive international travel insurance policy. Remember to read the fine print in your PDS to find out how you're covered.

  Read more about Travel Insurance Direct.

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

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

• I am over 70. Can I take out cover?

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

• 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.

• Is cover on my credit card enough?

  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.

• I'm taking a cruise in Australian waters. Is domestic travel insurance enough?

  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 you'll need an international policy. Learn more about cruise travel insurance.

• Is Norfolk Island covered under domestic policies?

  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.