Domestic travel insurance

If you are planning a trip closer to home, travel insurance may still be worth considering. Domestic travel insurance can help cover things like cancellation costs and lost, stolen or damaged luggage.

What is domestic travel insurance?

Domestic travel insurance is designed for trips taken within Australia. It is different to international travel insurance, which covers trips taken overseas. Instances where domestic travel insurance could help you include cancelling trips because someone is sick, or if your luggage is lost, stolen or damaged.

The insurance provider may offer insurance for single or multiple trips. Cover for multiple trips, known as a multi-trip policy, typically covers you for unlimited trips within a 12-month period.

It’s also worth noting that domestic travel insurance policies may only cover you if you are travelling a certain distance from your home. For example, some providers set a limit of 250 kilometres.

Does domestic travel insurance cover COVID-19 related claims?

A number of travel insurance providers now offer cover for COVID-19 related claims in some circumstances. This includes domestic travel insurance policies. See a list of providers on Canstar’s database offering COVID-19 related cover.

Depending on the policy, you may be covered for selected benefits if you or your travelling companion are diagnosed with COVID-19. For example, some providers offer cover for COVID-19 related cancellations and additional expenses, such as quarantine or isolation costs.

If you are considering taking out travel insurance, it’s important to carefully read the Product Disclosure Statement (PDS), Target Market Determination (TMD) and your policy wording to find out exactly what you will and won’t be covered for.

What does domestic travel insurance cover?

Your coverage will depend on the policy you choose, but in general, domestic travel insurance can provide cover for:

• Cancellation costs. Depending on your policy, you will usually be reimbursed for non-refundable flights, accommodation, tours and other travel-related expenses. Domestic travel insurance usually applies if you need to cancel, reschedule or shorten your trip because of unexpected circumstances, such as sickness.

• Lost, damaged or stolen personal belongings. Be mindful of the policy limits and sub-limits per item. For example, if you have a new $1,500 phone and it is stolen, your policy may only pay up to $1,000. Some policies may allow you to increase the sub-limits on items by paying an additional premium.

• Additional expenses. You may be reimbursed for additional accommodation and travel expenses if you or your travelling partner cannot continue your journey due to certain events, such as injury or illness.

• Rental vehicle excess. If you choose to hire a vehicle and the vehicle is damaged or stolen while in your care, some domestic insurance policies may cover part or all of the excess charged by the rental company.

You may be able to add additional coverage to your policy, such as snow sports cover or cruise cover, for an additional cost. The level of cover, exclusions and excesses vary between policies. Make sure you read the policy documentation to understand what you are covered for.

Does domestic travel insurance cover cruises?

Some travel insurance providers offer cruise cover. This may be offered as an optional extra, meaning you will have to pay more for it.

This cover may be helpful even if your cruise isn’t leaving Australian waters. According to Smartraveller, you may not be able to claim Medicare or private health insurance on the ship. It recommends checking if your ship has a Medicare-accessible doctor on board before you go.

As well as providing medical cover, cruise cover could also include cover for medical evacuations and cancellation costs. Check the policy documentation to see exactly what is and isn’t covered.

What doesn’t domestic travel insurance cover?

Domestic travel insurance generally does not provide cover for medical expenses. Instead, Australian citizens and permanent residents can use Medicare or private health insurance to help cover some or all medical costs.

As with most insurance policies, there are also some general exclusions to be aware of. This may include not covering pre-existing conditions and not covering stolen belongings if you haven’t taken reasonable steps to protect them, for example. Exclusions may also apply to adventure activities such as snow sports, and moped or motorcycle riding, unless you have purchased additional cover. Make sure you check the PDS for exclusions and limits, and the TMD to find out if the cover is suitable for your needs.

How much does domestic travel insurance cost?

The cost of domestic travel insurance will vary depending on factors such as the provider you choose, where you are going, the level of cover you take out and the length of your trip, as well as your age, whether you have listed other people on your policy and any optional extras you add to your policy (such as snow or cruise cover).

Planning a road trip?

If you are planning to drive around Australia, it’s also worth checking what you are covered for. If you decide to hire a car, check whether your policy includes rental vehicle excess cover. Some credit cards also offer this as a complimentary insurance, so it can be a good idea to check your credit card documentation.

If you are planning to use your own car, you will need to have compulsory third party insurance (CTP). This is usually included with your car registration cost (except in New South Wales). You could also consider a comprehensive car insurance policy, which will give you broader cover.

Some insurance providers also offer caravan, motorhome and camper trailer insurance. The benefits, exclusions and levels of cover differ based on the policy. Make sure you read the PDS, TMD and other relevant documentation before making a decision.

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