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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.
How do you find the best domestic travel insurance?
There is no one size fits all travel insurance option, so the best domestic travel insurance policy for you is the one that suits your needs and budget and covers you for the things that are important. For example, if you are especially concerned about loss or damage to your luggage, then you may opt for a policy that has a high limit for this – at the time of writing, some domestic travel insurance policies on Canstar’s database will cover you for up to $15,000 in lost or damaged luggage.
Similarly, if you are concerned about lost deposits and cancellation fees, you may opt for a policy that has a high cancellation limit. At the time of writing, some policies on Canstar’s database offer up to $50,000 in cancellation coverage, and some are unlimited. It bears keeping in mind, though, that the higher the limit in certain areas, the higher the premiums are likely to be, but this may be worth it to you for the peace of mind of knowing you’re covered.
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.
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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