Australia is one big place and there is just as much to see and do here as there is going abroad. Blessed with beautiful beaches, a myriad of natural wonders, unique wildlife, large expanses of the outback and a collection of cosmopolitan cities, it’s easy to see why this captivating country is a complete travel destination.
The comfort of being close to home combined with the relaxed Aussie lifestyle makes it easy to overlook travel insurance for a domestic holiday. Whilst the majority of us don't need to worry about medical cover when travelling domestically (assuming you're covered by Medicare or private health cover), being protected at home is just as important as being covered overseas.
Lost luggage, damage to a rental car, flight delays, cancellations and theft are all situations that could quickly put a downer on any domestic trip. Our guide helps to explain everything there is to know about cover for your holiday-at-home!
What does Domestic Travel Insurance Cover?
Cancellation Cover
Sometimes trips just don't go to plan! Domestic cancellation benefits cover the cost of rearranging or cancelling your trip because of unforeseen circumstances like illness, accidents & extreme weather. Cover starts from the day you buy your policy not when your trip starts
Lost or Damaged Luggage
It's a real pain in the butt when your stuff is lost, stolen or doesn't show up. At least if disasters happen on your holiday at home your policy will replace or reimburse you for your baggage and personal items if they disappear or are damaged.
Travel delays
Bummer, your interstate flight is delayed, now what!? If your transport is postponed due to an unforeseen reason, your out-of-pocket accommodation, meals, and transport costs would be covered until you get back-on- track.
Rental car excess
Hiring a car? Did you know domestic travel insurance often includes your rental vehicle excess should you have a ding or your hire car is stolen? Don’t take up the expensive collision damage waiver with your rental company, get cover with your domestic policy for a fraction of the cost.
Family emergency
It's always a worry going on holiday leaving loved ones behind. Never fear, should a close relative, or the person you’re travelling with become seriously ill, injured or heaven-forbid die, your travel expenses would be claimable. Restrictions can apply for relatives age, medical conditions and where they live.
Personal liability
A lawsuit would certainly put a dampener on your dream holiday. Relax as you're covered in the event that you are found to be legally liable for accidental injury or damage you may have caused to another person or their property whilst on your trip.
What doesn't domestic travel insurance cover?
Let's face it, domestic travel insurance can't cover everything! Here's a few things to be aware of that might not be covered on your Australian adventure.
Medical benefits: Domestic travel insurance doesn't include medical benefits as the government's healthcare system Medicare will take care of your medical troubles on home soil.
Dental Cover: It's also unlikely a domestic policy would include cover for dental expenses including hospital stays, surgery or prescriptions.
Permanent Disability: Not all insurers include permanent disability benefits as part of their domestic cover. This would normally include cover if you are injured on your trip and within 12 months of the date of the accident, you permanently lose sight in one or both eyes, or one or more limbs.
Being reckless: We know that travel is all about new and exciting experiences, but if you deliberately put your life in danger (like jumping off a high cliff into the sea) you're unlikely to be covered. Injuries or loss when alcohol or drugs have been a contributing factor may not be covered either. Not too many Espresso Martinis in Byron Bay now!
High-risk activities: Many high-risk activities and extreme sports are not automatically covered. Always check whether your planned activities are covered before you go. You may be able to purchase additional cover for certain activities.
Travel supplier default: Does your tour operator sound a bit dodgy? Travel insurance does not always cover for insolvency of travel agents, tour wholesalers, tour operators or booking agents. Make sure you’re confident in the operator making your travel arrangements.
Known events: If news of a hurricane affecting travel has already been spread all over the news and prompted you to buy cover, it's too late. You can of course still purchase, it's just that events known in the mass media are likely to be excluded from your cover.
And more... We haven't detailed all travel insurance exclusions here. Just the ones that frequently pop up. It's vital that you read your chosen insurer's Product Disclosure Statement before you purchase to understand the exclusions that apply to your cover.
Common Claims on Domestic Travel Insurance
Things can go wrong when you’re travelling in Australia too. Sometimes before you even get a chance to leave your home.
We surveyed some of Australia's leading travel insurers on the most common claims for Domestic Travel Insurance:
- Trip cancellation costs because a traveller or a family member becomes seriously ill or injured (33% of claims)
- Lost, stolen or damaged luggage - including our beloved mobile devices (15% of claims)
- Excess for a stolen or damaged rental car (11% of claims)
- Flights cancelled due to natural disasters or severe weather (8% of claims)
- Additional expenses because someone’s sick or hurt (5% of claims).
Why do you need Domestic Cover?
Exxy flight Costs
Australia is a big place! Going from one side to the other will set you back significantly. If a family emergency stopped you from going on your trip, or your flight was cancelled, would you have enough money to pay for another flight?
Natural disasters
Floods, storms, hurricanes don't just happen overseas, they happen here too. Should a severe weather event affect your trip, your domestic cover will reimburse you for any out-of-pocket expenses. Phew!
Missed events
Booked flights to see your favourite pop star or sporting team perform? In the event that your flight to that big event is cancelled or delayed domestic travel insurance will help you get there on time.
Your stuff is important
Loss, theft or damage to your prized possessions can be a common, yet gut-wrenching experience. Don't worry, if your personal belongings go AWOL the right policy will pay to replace or repair them. Woop!
For your peace of mind
Many holidays are hassle-free but a reasonable domestic policy is a small price to pay to cover your holiday at home. You wouldn’t travel overseas without cover, so don’t travel around Australia without it either.
Hiring a car in Australia
A great benefit of domestic travel insurance is that several policies come with rental vehicle excess included.
When hiring a car, you’ll be encouraged to pay a daily collision waiver from the rental company to reduce the amount you have to pay them in the event of an accident. However, you don’t have to pay this if you purchase travel insurance with car hire excess included.
Whether you’re driving overseas or interstate, this can be a real cost saver as a travel insurance policy usually works out far cheaper. As long as your vehicle is hired from a licenced rental company, you can also cover the excess of campervans and motorhomes (not exceeding 4.5 tonnes) which makes for happy campers.
Cruising Domestically
Are you cruising around Australia? Did you know that Medicare doesn’t cover cruisers even if you’re sailing in domestic waters? Even if you’re just travelling up the coast from Sydney to Brisbane, you’ll need to make sure your policy adequately covers you if you were in need of any medical treatment whilst on board. When getting quotes on our site, you’ll be encouraged to pick Pacific for the region, even if you’re sailing domestically. Click here to learn more about domestic cruise insurance.
domestic travel insurance faqs
Questions about domestic travel cover? You've come to the right place.
When you buy domestic cover, you are purchasing a policy for the whole country including Tasmania, Norfolk Island and Torres Strait. Create a quote to start comparing prices and features.
This depends upon the policy that you buy. Some insurers require you to be a certain distance from your home in order for the domestic cover to kick-in! It varies from around 50-200km so be sure to check the PDS if you're planning a staycation close to home.
It's choppy waters out there! Some insurers cover you automatically when going on a cruise, others require you to purchase a cruise pack and some cover you as long as you have an international policy like the Pacific for example. If you are unsure, pick up the phone and give your insurer a call to check that you have the right cover. When you go on a cruise in Australian waters, in most cases it’s required for you to purchase a Pacific policy. This is because visiting the doctor onboard the ship is charged at private/international rates. You’ll also need a Pacific policy to be covered for helicopter rescue off the ship. Some companies still allow you to purchase a domestic plan, but you’ll need to add-on a cruise pack in order to be covered from ship-to-shore.
Rental vehicle excess is the amount that you would have to pay in the event that your rental vehicle is stolen or damaged, while in your care. Many people buy domestic travel insurance for this benefit alone as it is far cheaper to buy a travel insurance policy, including cover for your hire car than it is buying excess cover direct from your rental company
Some Aussie companies offer “Visitors Travel Insurance” as it is known. You may be required to purchase the policy before the friends or relatives arrive in Australia and waiting periods may reply.
Yes, in most cases, if a loved one is unexpectedly hospitalised or passes away and you need to return home early, your domestic cover will pay to get you there.
In most cases, you’ll need to purchase some sort of ski or adventure pack in order to be covered for skiing or snowboarding within Australia. You should also consider whether ambulance costs would be covered should you need to be evacuated off a mountain. Speak to your chosen insurer to check if emergency evacuation benefits are included in their domestic snow pack.
Are you in favour of a frequent city break? Whether it's Sydney, Adelaide or Perth you might benefit from a multi-trip policy designed for frequent domestic travellers. If you have more than two trips planned within a 12 month period an annual travel insurance policy can be significantly cheaper than purchasing a single trip policy each time you travel.
Domestic Travel Insurance is specifically for trips within Australia. Your cover will typically include cover for loss or damage to luggage, travel delays, cancellation fees. Other benefits such as rental vehicle excess, personal liability and theft of cash are common too. It's important to note that medical benefits are not covered for domestic policies
Eugene Wylde
Eugene is the king of insurance! Having spent more than ten years raising awareness on the importance of holiday protection, he is a self-confessed insurance geek extraordinaire when it comes to the world of travel cover. Eugene loves helping people save time, worry and loads of money with the right policy at the right price. His ideal holiday is any one where he has a pina colada in his hand. Salut!
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