Why do I need travel insurance as a backpacker?
A backpacking trip can be the adventure of a lifetime, allowing you to see the world on a budget. However, a boots-on-the-ground adventure can be fraught with dangers:
- Illness: Backpacking, while rewarding, is also physically demanding. When you’re exhausted, your immune system may be susceptible to the common cold or flu. If you aren’t careful, you may also be at risk of food or waterborne illnesses.
- Injury: If you’re spending more time on the open road, you could be exposed to dangerous wildlife or trip hazards.
- Natural disaster: If the area you’re travelling to is struck by a natural disaster, you may be placed in harm’s way.
- Theft and other crimes: Most backpackers lug all (or most) of their belongings on their backs, making them prime targets for opportunistic thieves. Staying in shared accommodations like hostels may also expose your belongings to damage or loss.
If you’re seriously injured on your trip, you may need to seek immediate medical attention. Some countries have have a Reciprocal Health Care Agreement (RHCA) with Australia, which means the cost of urgent medical care is generally covered. If your destination doesn't have an RHCA, you may be responsible for financing your own treatment in an emergency.
Even worse, if the country you’re visiting lacks the appropriate medical facilities, you may have no other option but to be evacuated back to Australia for treatment, which can cost a small fortune. And if you’re the unfortunate victim of a theft, you’ll have to pay to replace any of your stolen possessions yourself.
If price is a deterrent for you, there are backpacker travel insurance options that won’t necessarily break your budget.
What is the best travel insurance for backpackers?
There is no ‘best insurance’ policy that’s universally applicable to all backpacker holidays. However, the cheapest choice isn’t the best by default — a basic policy may not cover all the things you need or want.
Canstar’s Travel Insurance Awards recognise the providers that offer outstanding value to customers around Australia. Meanwhile, our annual Most Satisfied Customers Award: Travel Insurance recognises the insurer with the most satisfied customers.
Our most recent award winners include:
- 2025 Travel Insurance Award – International: 1Cover, PassportCard, Southern Cross Travel Insurance, Travel Protect, WAS Insurance, World2Cover, and Zoom Travel Insurance
- 2025 Travel Insurance Award – Domestic: PassportCard, Qantas Insurance, Travel Protect, and WAS Insurance
- 2026 Most Satisfied Customers Award: Virgin Australia
How to find the best travel insurance for backpacking
It’s important to prioritise what your policy covers over its final price. The best travel insurance for backpackers will depend on factors like:
- Your destination: The country/countries you plan to visit will impact the cost of your policy.
- The value of your luggage: Appraising the dollar value of the items you’re carrying can determine the level of cover you need if they are stolen or lost.
- Trip duration: The length of your trip will affect how much your policy costs.
- Time of year: Annual weather conditions, such as visiting during cyclone or monsoon season, could increase the risk of injury or damage while backpacking in the area.
- Customer service options: A 24/7 helpline can be especially helpful if you’re in a non-English-speaking country and you don’t speak the native language.
- Deals and discounts: Some providers offer discounts, such as for being a student or buying your policy online. But assess the quality of the policy as a whole, including its coverage, limits and exclusions.
- Included activities: Look for coverage for any physical sports or activities you have planned, such as scuba diving, skiing and snowboarding. Note that you may need to add on coverage for some activities.
It’s a good idea to keep a copy of your policy document handy while you’re travelling, just in case you need to make a claim.
What is backpacker travel insurance?
The two main types of travel insurance are basic and comprehensive. If you’re backpacking within Australia, providers also offer domestic travel insurance.
However, some insurers may offer specialised ‘backpacker travel insurance policies’. Backpacker travel insurance is tailored to extended, multi-destination, or budget-focused trips lasting from a few months up to two years.
These policies are typically similar to basic travel insurance, but may also have the option of adding cover for higher-risk activities.
At the time of writing, these are some of the insurers offering backpacker travel insurance policies:
- World Nomads
- True Traveller
- Fast Cover
- Travel Insuranz
- Insure4Less
- Southern Cross Travel Insurance (SCTI)
- SafetyWing (Nomad Insurance)
- Cover-More
- Tick Travel Insurance
What does backpacker travel insurance cover?
Because backpacker travel insurance is a specialised product, not all policies from different insurers will cover the same situations. Typically, you can expect the following:
- Medical costs: The cost of medical treatment, hospitalisation, or evacuation is covered by travel insurance.
- Trip cancellation: Cancellation due to illness, accident, or a natural disaster at your destination.
- Trip delay: Your policy may reimburse you for the cost of your temporary accommodations, food and transport if your travel is delayed due to circumstances such as cancelled flights.
- Lost or stolen luggage, passport or other items: Your policy could cover the cost of replacing your lost belongings or travel documents.
Some insurers may also offer ‘add-on packs’ for niche activities, such as cruise cover or adventure sports. You may be able to opt for a lower or higher level of cover, depending on your needs and budget.
Each policy may also be subject to limits and sub-limits, which restrict the maximum amount you can claim on the policy or on each feature.
What does backpacker travel insurance not cover?
Like standard travel insurance, there are situations in which your backpacker travel insurance may be voided, such as:
- Riding without safety equipment: For example, if you’re caught riding a bicycle, scooter, or moped without a helmet, your insurer will not cover you for injuries or damages incurred.
- Being under the influence: Being under the influence of drugs and alcohol during a claimable event automatically bars you from any cover or remuneration.
- Pre-existing conditions: If you are fully aware of a pre-existing medical condition and fail to disclose it upon taking out the policy, you’ll be excluded from any cover for that condition. Some insurers may choose to cover you for that condition for an additional cost, provided it is disclosed on time.
- Unattended items: Items or belongings lost or stolen while unattended will not be covered by your insurer.
How much does travel insurance cost for backpackers?
The cost of travel insurance for backpackers ultimately depends on several factors, such as:
- Age: Older policyholders generally face higher rates, as insurers view them as a greater risk for requiring medical treatment while away.
- Group size: Adding more travellers to a single policy typically drives up the total price you'll pay for coverage.
- Pre-existing medical issues: Disclosing an existing illness or condition often requires paying an additional fee to secure coverage.
- Destination: Travelling to destinations with strong local currencies or expensive health care typically results in higher policy costs.
- Duration of travel: Longer trips increase the likelihood of needing to submit a claim. Consequently, insurers may charge more for extended coverage.
- Your excess: Opting for a lower excess, which is the amount you agree to pay when submitting a claim, increases the upfront price of your policy.
- Optional extras: Including any extra add-ons on top of your policy will bump up the cost of your premiums.
