Is travel insurance compulsory?
Is travel insurance compulsory in Australia?
No, travel insurance is not a legal requirement if you live in Australia. You can travel domestically and internationally without it, although this may expose you to various expenses. Although no Australian law mandates the purchase of travel insurance before you leave the country, some destinations like Cuba make travel insurance mandatory or may ask if you have travel insurance during visa applications.
Travelling is exciting, but uncertainties can turn an otherwise wonderful trip into a stressful experience. From medical expenses to trip cancellations, many things can go wrong. While travel insurance is not compulsory when travelling from Australia, it is essential for protecting yourself and your trip from unexpected events. Whether travelling for leisure, business, or adventure, the right travel insurance policy can offer peace of mind, ensuring you have some financial protection from disruptions, emergencies, and losses.
Do I need travel insurance for my trip?
The need for travel insurance depends on the destination and nature of your trip. While domestic travellers within Australia have access to regular health services and might feel comfortable without travel insurance, travellers exploring any international destinations should consider purchasing travel insurance. Healthcare costs abroad can be staggering without health insurance, and travel insurance can protect you from financial losses caused by medical emergencies, cancelled trips, lost belongings and more.
Travel insurance is essential if:
- You’re travelling to a country with high health care costs (e.g. the United States).
- You’ve pre-paid non-refundable expenses like flights, hotels, or tours.
- You’re visiting a destination prone to natural disasters or political instability.
- You plan to engage in adventure activities such as skiing, scuba diving, or trekking.
Should I buy travel insurance, and is it worth it?
Travel insurance is worth it for most travellers. A policy’s small upfront cost can save you thousands, or even tens of thousands, in the event of an emergency. Even for short trips, the unexpected can happen, and being protected offers peace of mind.
Travel insurance protects you in the case of:
- Medical emergencies: A minor injury could result in hefty hospital bills abroad. Travel insurance covers medical costs, hospital stays, medical evacuation and emergency repatriation and can sometimes cover emergency dental work.
- Cancellation or trip interruption: If your trip is cancelled or interrupted due to circumstances like illness, a death in the family, or natural disasters, travel insurance can help you recover non-refundable costs.
- Lost or delayed luggage: Travel insurance can reimburse you for lost or delayed baggage, so you can afford to replace essential items while you wait for your bags.
- Lost or stolen belongings: Travel insurance can cover the replacement cost of your lost or stolen valuables and belongings, including credit cards, wallets and jewellery up to your covered limit.
- Adventure activities: Some travel insurance plans cover injuries sustained during skiing, scuba diving, or hiking. If you plan to engage in these activities, you’ll want specific adventure or sports cover.
Always read the Product Disclosure Statement (PDS) to understand your policy’s inclusions, exclusions and sub-limits. Read the Target Market Determination (TMD) to ensure the policy suits you and your trip.
Can I go without travel insurance?
You can technically go without travel insurance, but doing so comes with significant financial risks. You will be responsible for all costs if you fall prey to a pandemic or run into medical emergencies, cancellations, theft or other unfortunate events. Insurance companies offer travel insurance as a buffer to prevent these incidents from derailing your trip or straining your finances.
For international trips, the risks are higher due to the cost of overseas medical treatment and emergency evacuations, which could cost tens of thousands of dollars. Travellers without insurance might find themselves in difficult situations—paying out of pocket or even going into debt to cover costs.
More about travel insurance
Types of travel insurance
There are several types of travel insurance policies, and the best travel insurance for you will depend on your needs, the length of your trip, and the activities you plan to do. Here’s a breakdown of the main types of travel insurance:
- Single-trip travel insurance: This is the most common type of travel insurance and covers one specific trip. It’s ideal for individuals or families who take one or two holidays per year and want cover for the duration of each trip.
- Multi-trip or annual travel insurance: An annual multi-trip insurance policy is often more cost-effective for frequent travellers. It covers unlimited trips within 12 months, each limited to a specific duration (e.g. 30 to 90 days).
- Comprehensive travel insurance: This package covers many risks, including medical emergencies, lost luggage, trip delays, cancellations, and emergency evacuations.
- Medical-only travel insurance: Medical insurance only covers medical emergencies and excludes trip cancellations, delays or lost luggage. This can be a good budget option for travellers who aren’t concerned about disruptions or lost items but want to ensure they have some cover for medical bills.
- Adventure travel insurance: Standard travel insurance policies don’t always cover activities like skiing, scuba diving, or hiking in remote areas. Adventure sports insurance provides extra cover for injuries or accidents during these activities.
What type of travel insurance should I get?
The type of travel insurance coverage you should purchase depends on the activities you plan to do during your trip and how much cover you need. Some things to consider include:
- Destination: International travel generally requires a more comprehensive cover, especially for countries with high health care
- Activities: If you’re engaging in high-risk activities like skiing or diving, you’ll probably need specialised adventure cover.
- Frequency of travel: Frequent travellers should consider annual or multi-trip
- Personal circumstances: Consider things like pre-existing medical conditions, the cost of your trip, and the risks involved with visiting your destination.
Why is travel insurance important?
Travel insurance offers a safety net for the unpredictable nature of travel. It can provide financial protection and support whether you have an accident, lose belongings, or have a cancelled flight.
Key reasons travel insurance is essential include:
- Medical cover: Medical emergencies abroad can be extremely costly, especially if your destination has high healthcare costs.
- Emergency evacuations: Evacuations from serious illness, injury, or natural disasters can run into the tens of thousands. Travel insurance can cover these types of costs.
- Trip disruption: If your trip is delayed or cancelled due to weather, illness or political unrest, insurance can provide cover that you’re not left paying out of pocket.
- Personal belongings: If your luggage is lost, stolen or damaged, travel insurance can cover the replacement of insured valuables.
Can I buy travel insurance after departure?
You can buy travel insurance after leaving Australia, but these policies often have restrictions. Before purchasing insurance, check whether cover for things like pre-existing medical conditions and trip delays is included. Additionally, some insurers may charge higher premiums for cover after your departure.
If you buy travel insurance after leaving Australia, double-check the policy’s terms to ensure the policy covers the essentials you need. It’s best to purchase travel insurance from when you make a booking or pay your first deposit to get the best value from your travel insurance purchase. What countries require travel insurance to visit?
Many countries mandate travel insurance as part of their entry requirements, requiring proof of cover before granting a visa.
In the Schengen area of Europe, for example, some travellers entering the region on a non-Australian passport must submit documentation showing they have purchased travel insurance that is valid for the entire duration of their European stay. This insurance must cover all 29 Schengen countries—including Austria, Belgium, Bulgaria, Czechia, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and Switzerland—and must provide a minimum specified level cover.
Other countries that require visitors to have travel insurance include Algeria, Argentina, Aruba, Canada, Cuba, Dubai, Ecuador, Fiji, Georgia, Lebanon, Iran, Israel, Jamaica, Jordan, Moldova, Morocco, Nepal, Qatar, Rwanda, Seychelles, the United Arab Emirates (UAE), Togo and Turkey.
Do I need travel insurance to visit the USA?
The United States of America (USA) does not necessarily require foreign visitors to obtain travel insurance or a health insurance plan before they’re allowed to enter. However, it is highly recommended. The USA is known to have extremely high healthcare costs, where a simple ER visit can reach thousands of dollars. If you need hospitalisation or more extensive treatment, the bills can reach tens, if not hundreds of thousands of dollars. If you do not have health insurance, you will have to cover these expenses yourself.
Meet our travel insurance expert, Adrian Taylor
As the Executive General Manager of General Insurance, Adrian Taylor believes in educating customers about the importance of travel insurance so that anyone can kick back and make the most of their time away from home. While no one wants a disrupted holiday, a suitable travel insurance policy can provide a financial safety net for yourself, your belongings and your trip in case things go wrong.