Domestic travel insurance

Travel insurance for Australians holidaying at home is important to consider. Domestic travel insurance provides you with cover for unexpected incidents or accidents while you’re travelling around Australia and can be a great safety net to ensure your holiday stays on track.

Some of these accidents could be if your plans are disrupted by lost or stolen luggage, flights cancelled due to natural disasters or severe weather, or your rental vehicle gets damaged.

If you’re on vacation and plan to pre-book flights, accommodation, tours or other activities that require a deposit, consider getting domestic travel insurance. If your trip needs to be partly or entirely cancelled, is disrupted or delayed, you could be covered for any pre-paid bookings that you can’t use.

By comparing using our travel insurance service, you can search for cheap domestic travel insurance policies that match your budget and the needs of your trip.

Seniors under 99 years of age could still be covered by domestic travel insurance. While there may be reduced limits for your level of cover for Australians over 70, senior travellers can still often have peace of mind knowing they may be covered for delayed flights, lost luggage and activity cancellations.

It’s important to remember that your coverage will depend on what insurance policy you take out. The following points are a guide on what domestic travel insurance could cover; however, always ensure you read your policy’s Product Disclosure Statement (PDS) to understand the full details on what’s included and excluded in your policy. Read the Target Market Determination (TMD) to check whether a policy is right for your circumstances.

Lost, damaged or stolen belongings

Whether it’s during transit or after you’ve arrived at your Australian destination, losing or having your personal items stolen is a common fear, particularly your travel documents or credit cards which can be a major inconvenience while you’re travelling. That said, a domestic plan can provide some financial defence when having to replace any lost, damaged or stolen items, up to the item limits listed in your PDS.

Cancellation costs

If you have cancellation cover, you could be reimbursed for lost deposits, unexpected accommodation expenses or even trip cancellation fees if your domestic trip is partly, or completely, cancelled due to a covered event.

Travel delays

Travel delay cover can help cover additional expenses for accommodation, food or travel if your trip is unexpectedly delayed. This can offer peace of mind when it comes to needing to purchase necessities until your trip is back on track.

Rental car insurance excess

When you hire a car, you’ll have to take out insurance from the rental company in case your vehicle is damaged. It’s worth noting that if an accident happens, you may owe an excess to the rental car company.  When you hire your rental car you will have the option to go with the standard excess, or the pay the rental company an additional fee to reduce the excess in the even of an accident.

Domestic travel insurance could cover the cost of this rental vehicle excess. Keep in mind that rental car excess cover may come as an optional extra on your policy.

Domestic travel insurance policies generally don’t include cruise cover as a standard feature. However, it may be added as an extra for travellers specifically looking to go on a cruise holiday. Although if it isn’t, it may be worth purchasing an international policy that covers cruises for your holiday on the sea.

This addition could be crucial, as Medicare and private health insurance won’t cover medical expenses for any injuries or accidents sustained while onboard a ship; this applies to cruises within Australian waters as well, not just international waters. Additionally, having cruise cover will ensure that any claims for cancellation fees for delayed or cancelled cruises can be assessed.

Similar to cruise cover, you typically won’t automatically be covered for snow sports such as skiing or snowboarding. However, you may be able to get snow sports cover as an optional extra on your policy. This may cover accidentally damaged ski equipment or the cost of ski passes if the mountain is closed due to bad weather. However, since you’re in Australia, you won’t be covered for medical expenses, as that’s covered by your private health insurance or Medicare instead.

Every travel insurance policy has instances where you may not be covered. Common exclusions for domestic travel insurance policies are:

• Cases where you’re already compensated. If your flight or other booked activities have been delayed or cancelled, or valuables have been lost, your travel insurance may cover any costs incurred. However, this won’t be the case if the airline or travel service provider already reimbursed you.
• Unlicensed operation of vehicles. When operating any vehicle, always make sure you have the license required. Otherwise, any accidents you may have might not be covered by your travel insurance policy.
• Scuba diving without a licensed instructor. To scuba dive safely, always do so under the supervision of a licensed professional and check whether you need additional insurance for diving. Otherwise, you may not be covered by your policy.
• Injuries from activities not covered by your policy. There are specific activities (such as adventure activities or winter sports like skiing ) you might need to disclose with your travel insurance provider or purchase as an add-on to be covered.
• If you’re under the influence of alcohol or other drugs when you injure yourself, you may not be covered.