Domestic Travel Insurance

What is Domestic Travel Insurance?  

Depending on whether you’re planning to bungee jump off the Sydney Opera House (not recommended) or simply enjoy a flat white in Carlton (highly recommended), you’ll typically face less risks when travelling within Australia compared to exploring overseas. You’ll already be familiar with our comprehensive healthcare system, road rules and common tourist traps.  

With that in mind, a Domestic Travel Insurance policy can provide compensation for a range of unexpected costs that could be incurred during a trip within your home country.  

Do you need Domestic Travel Insurance?  

The Australian Government recommends all travellers have insurance when travelling overseas due to the possibility of incurring high medical expenses in other countries. For domestic trips, on the other hand, Travel Insurance offers cover for costs incurred by last-minute trip cancellations, loss or damage to luggage, and stolen property. Some policies can even help pay your rental vehicle insurance excess and third-party damages if you are stuck with the bill after a fender bender.  

Being inside Australia means medical expenses are unlikely to be an issue as you will still be covered by Medicare and/or your regular Private Health Insurance policy. Depending on your situation though, domestic Travel Insurance can make financial sense and provide peace of mind while exploring everywhere from Broome to King Island.  

What is and isn’t covered by Domestic Travel Insurance?  

Perhaps most importantly, medical costs are not covered by domestic travel insurance. The reason being, you will (hopefully) have access to Medicare and the Australian healthcare system. Cover for last-minute trip cancellations, lost or stolen luggage and rental car excesses are the other major reasons to consider domestic Travel Insurance. Snow sports cover is also often available as an optional add-on.  

For domestic trips, some Travel Insurance policies require that you travel a certain distance from home (often 100 or 250km) or stay in paid accommodation to be covered.  

TRAVELLER	TRAVEL STYLE	DESTINATION	TRAVEL INSURANCE BENEFIT
Trent (52)	City break shopping tour	Melbourne, VIC	Lost luggage
Sue (26)	Outdoor hiking adventure	Kimberley Region, WA	Rental car excess
Kris (34)	Island cocktail escape	Hayman Island, QLD	Trip cancellation

What if I’m going on a cruise? 

If you are going on a cruise, even one that doesn’t leave Australian waters, make sure to double check your insurer’s Policy Disclosure Statement (PDS). Some insurers offer cruises as an add-on to their domestic Travel Insurance policy, while for others domestic cruises fall under the international Travel Insurance policy.  

You may not be able to claim Medicare rebates for treatment received on a domestic cruise, and given domestic travel insurance plans don’t cover medical expenses, it’s essential to weigh up your insurance options before boarding. 

How much does Domestic Travel Insurance cost?  

Domestic Travel Insurance for a single person for one week ranges from $30 to $90 depending on the level of cover you are looking for. Cruise and snow sports cover are available at an additional cost. The more comprehensive policies generally include accidental death and permanent disability benefits, as well as more generous allowances for trip cancellation, luggage and personal effects, and rental car insurance excess, while basic policies offer more limited cover.  

It is important to take into account the activities that you have planned, the value of your belongings and the budget for your holiday overall to determine the appropriate policy for you. Check out the details in the PDS before purchasing a domestic Travel Insurance Policy (hint: they probably won’t mention Opera House bungee jumping). 

Where to find and compare Domestic Travel Insurance 

Whether you’re planning a weekend away or a road trip around Australia, it’s worth considering if domestic Travel Insurance is suitable for you. Head to iSelect to compare Travel Insurance policy options from our range of providers.