What is domestic travel insurance?
Domestic travel insurance is an insurance policy that applies to your travels within Australia only.
It’s not a legal requirement to take out travel insurance when travelling domestically. The decision to buy domestic travel insurance comes down to personal choice and the type of trip you're taking.
While you won't usually need cover for medical expenses when travelling within Australia, as Medicare and private health insurance may help cover eligible costs, domestic travel insurance can help protect you against other unexpected events.
What does domestic travel insurance cover?
What you’re covered for 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 due to unexpected circumstances, such as sickness.
- Lost, damaged or stolen personal belongings: If your luggage or personal belongings are lost, damaged or stolen while you're travelling, your policy may help cover the cost of repairing or replacing eligible items. Be mindful of the policy limits and sub-limits per item, as they differ between insurers.
- Additional expenses: If your trip is unexpectedly disrupted due to an insured event, you may be reimbursed for eligible accommodation and travel expenses. This might include situations where you cannot continue your journey due to injury or illness, subject to the terms of your policy.
- Rental vehicle excess: If you hire a vehicle and it 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.
What doesn't domestic travel insurance cover?
While it can offer peace of mind to take out insurance for any trip you make within Australia, there are scenarios where domestic travel insurance won't provide cover, including:
- Routine medical expenses: Domestic travel insurance doesn't typically cover routine medical treatment while travelling within the country, as Australian citizens and permanent residents can use Medicare or existing private health insurance to help cover medical costs. Some policies may provide additional support for travel-related expenses if illness or injury disrupts your trip, but this needs to be confirmed with the provider first.
- Pre-existing medical conditions: If you need to cancel your trip or make a claim because of a pre-existing medical condition, you may not be covered unless the insurer has assessed and confirmed your condition will be covered under its policy. Some insurers automatically cover certain conditions, while others require you to disclose them before you buy your policy.
- Known events: If an event was known about before you purchased your policy, such as a forecasted natural disaster or an announced transport strike, your insurer may not cover any claims that come from it.
- Unattended or unsecured belongings: If your luggage or valuables are lost or stolen because they were left unattended or reasonable care wasn't taken to protect them, your claim may be rejected.
- Activities excluded by your policy: Some activities, such as snow sports, riding motorcycles or participating in adventure sports, are unlikely to be covered under a standard domestic travel insurance policy and require separate, dedicated cover.
As with any insurance policy, exclusions, limits and conditions vary between insurers. Make sure you read the Product Disclosure Statement (PDS) and your policy wording so you understand exactly what is and isn't covered before purchasing a policy.
How much does domestic travel insurance cost?
The cost of domestic travel insurance can vary significantly depending on the policy you choose and the type of trip you're taking. Like most things, price is an important consideration, but it's also worth making sure you're getting the level of cover you need if you are considering domestic travel insurance.
Some of the factors that can affect the cost of domestic travel insurance include:
- The level of cover: Policies with higher benefit limits or broader cover usually cost more than basic policies.
- The length of your trip: The longer your trip, the longer you need cover for, so it’s likely to attract a higher premium.
- Who you're travelling with: The cost can vary depending on whether you're travelling alone, as a couple or with your family.
- Your age: Some insurers charge higher premiums based on the age of the traveller wanting to be insured.
- Optional extras: Wanting to add cover for activities such as cruising or snow sports, or increase cover for valuable items? That may increase the cost of your policy.
Consider the cover limits, exclusions, excess and optional benefits to make sure the policy offers good value for your travel plans.
What is the best domestic travel insurance in Australia?
There’s no one ‘best’ domestic travel insurance provider, as this depends on your needs and budget.
Canstar’s Travel Insurance Awards recognise the providers that offer outstanding value to customers around Australia.
Our most recent award winners for domestic travel insurance are:
- 2025 Travel Insurance Award – Domestic: PassportCard, Qantas Insurance, Travel Protect, and WAS Insurance
How do you find the best domestic travel insurance?
There is no one-size-fits-all travel insurance policy, as the best policy for you is the one that suits your needs and budget, and one that covers you for the important things.
When comparing domestic travel insurance policies, it's worth looking beyond the premium and considering a few things
Think about what you're trying to protect. Maybe it’s protecting the money you’ll spend on non-refundable travel costs, or perhaps it’s covering any valuable luggage or electronics in case they get lost in transit. It’s worth checking a policy’s overall baggage limit as well as any sub-limits that apply to individual items.
If you’re looking at a cheaper policy, it may come with a higher excess, meaning you'll need to contribute more towards a claim if you make one. Weigh up whether the saving you make on the premium is worth the additional out-of-pocket cost if you need to claim.
Check what restrictions might affect your trip, particularly if you're planning activities such as skiing, cruising or hiring a vehicle.
If your trip includes activities such as snow sports, or you're travelling with valuable belongings, check whether you can add optional cover to your policy.
Before purchasing a policy, always read the PDS and Target Market Determination (TMD) to understand exactly what is and isn't covered, as well as any limits, waiting periods or conditions that apply. If there’s anything that you don’t understand, or need more information on, it’s always worth speaking to your provider for clarity.
While policies with higher benefit limits may cost more, paying a little extra could be worthwhile if it means you're better protected against unexpected travel costs.
Travel insurance for road trips
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.
Is domestic travel insurance worth it?
Whether domestic travel insurance is worth it comes down to the potential financial impact if your trip doesn't go to plan.
For a short weekend away with flexible bookings, you may decide the risk is low. However, if you've spent thousands of dollars on flights, accommodation, guided tours or a cruise, travel insurance could help protect you from significant out-of-pocket costs if you need to cancel or your trip is unexpectedly disrupted.
If you’re tossing up whether to take out travel insurance, consider the following:
- How much you've spent on any non-refundable bookings
- Whether you're travelling with valuable luggage or equipment
- Whether you'll be hiring a rental vehicle
- Whether you've booked any activities that require optional cover, such as a cruise or snow sports.
