Our Pick Of The Best Domestic Travel Insurance For Australians (2024)

Forbes Advisor Australia took a methodical approach when comparing the best domestic travel insurance for Australians. An in-depth analysis of more than 20 different policies was conducted, with data being analysed from company websites, product disclosure statements, and customer reviews.

The key features examined of each policy included:

• Who the policy was underwritten by, to ensure it is a reputable and trusted company;
• Whether it covers you for personal liability, in case you unintentionally cause damage to someone or something;
• If there is accidental death cover and, if so, what the maximum payout is;
• If there is cover for family emergencies, and any criteria that must be met–such as maximum ages;
• For those renting a car while travelling, if there is coverage for the excess for damaged or stolen rental cars;
• Whether or not it covers you for travel delays, along with any sub-limits related to emergency accommodation or meal costs;
• Whether or not it covers you for cancellations, the criteria for a cancellation and the maximum amount the policy will pay;
• If there is any cover for missed connecting flights;
• Whether there is lost luggage cover, or cover for stolen or damaged luggage;
• The sub-categories of lost personal belongings that it may cover, including electronics or cash;
• If you can increase the item limits cover that the policy offers for valuables such as jewellery or speciality gear;
• The maximum age that the policy offers coverage for;
• Any online discounts the insurance provider offers, or additional perks; and
• The star ranking it has received from existing and previous customers via the leading independent opinion site, ProductReview. This metric was considered more reliable if the insurer had a large number of reviews; a smaller number of reviews were considered less reliable.

About Star Rankings
You will note that we have included a star rating next to each product or provider. This rating was determined by the editorial team once all of the data points above were considered, and the pros and cons of each product attribute was reviewed. The star rating is solely the view of Forbes Advisor editorial staff. Commercial partners or advertisers have no bearing on the star rating or their inclusion on this list. Star ratings are only one factor to be considered, and Forbes Advisor encourages you to seek independent advice from an authorised financial adviser in relation to your own financial circ*mstances and investments before you decide to choose a particular financial product or service.

During the Covid-19 pandemic, states and territories all had different rules and requirements for domestic travel. This included mandatory quarantine, proof of vaccinations, border declarations, and government-enforced mask wearing or isolation requirements.

There are now no restrictions in place for domestic travel, meaning Australians are able to travel to different states and territories as they please.

Airlines have also loosened their restrictions, with mask wearing no longer enforced on planes, but rather encouraged.

Despite restrictions no longer being in place, Covid-19 is still active in communities. Considering that you or anyone you are travelling with could contract the virus and possibly be too ill to travel, it is worth determining if your domestic travel insurance would cover cancellations or flight changes due to Covid-19.

Related: Best Travel Insurance for Australians

As most Australians already have medical cover that is valid no matter where in Australia they are–whether via Medicare or private health insurance–there are still many other reasons to purchase domestic travel insurance that don’t relate to medical needs. Some of these factors may include:

Cancellations

Your domestic travel insurance policy can cover you if unforeseen events arise that cause you to have to cancel your trip. As Smarttraveller puts it, if you’ve already spent a lot on your holiday, it’s not too much extra to buy travel insurance to then be able to recoup potential losses.

It’s important to check your product disclosure statement (PDS) to understand what and what will not qualify as a reason for cancellation. For example, some policies may no longer cover you having to cancel due to contracting Covid-19, as it is no longer a requirement to isolate if you contract the virus.

Delays and Change of Plans

Similar to cancellations, domestic travel insurance can also cover you if you have to change your holiday plans or are subject to delays. For example, if you have to travel home early due to sickness or injury, your insurance policy may be able to cover the cost of the new flight.

Another example is if you are travelling for a concert or an event that is already pre-paid and you are subject to travel delays that cause you to miss the event. In this instance, your policy may reimburse you for lost costs.

Lost Belongings

Domestic travel insurance policies can also cover lost items, which is important if you are travelling with valuables. Many policies offer this cover in terms of three different categories: lost luggage, lost valuables, and lost cash. Additionally, the cover usually also extends to belongings that have been stolen or damaged.

There are often sub-limits applicable to certain items, such as electronics.

Car Hire Excess

If you are hiring a car for your travels, then domestic travel insurance is a smart choice of investment (if it offers car hire excess coverage). This is because if any damage occurs to the vehicle, your travel insurance policy will cover the cost of your excess up to a certain amount.

If you don’t have travel insurance with a car hire excess coverage, you would have to pay the car hire company’s full excess charge for any damage that occurs which is usually quite a costly charge or pay more at the vehicle car hire provider to reduce your excess to zero (if this is possible).

Personal Liability

A domestic travel insurance policy will usually provide cover up to a certain amount if you accidentally cause damage to a property or accidentally injure someone else. It’s worth noting that this cover is often included in comprehensive car insurance policies, so if you are travelling by road in your own vehicle and have a comprehensive car insurance policy, it may not be a necessary inclusion.

Cruise, Snow and Adventure Cover

If you are going on a specific type of trip, it’s important to make sure that your domestic travel insurance policy will cover the activities you intend to take part in. For example, if you are heading for a snow holiday, or on an ‘adventure’ trip such as a motorcycle tour, it’s important to make sure you are covered.

While these kinds of trips may not automatically be covered in a domestic travel insurance policy, they are often able to be covered upon purchasing an additional pack on top of the base policy such as “snow cover” or “adventure activities”. A brief note regarding cruise cover: even if you are cruising in Australian waters, you may not be covered by Australia’s Medicare system because the cruise company is not obligated to have a Medicare-registered GP on board, or you may cross into international waters. This is why cruise cover is especially important.

For seniors looking to travel domestically, travel insurance is advised. However, it’s important to note that many travel insurance providers and policies have maximum age limits. That being said, it’s important to make sure your policy will cover you and anyone in your travelling party for whatever age they are on the trip.

Some policies have a maximum age limit of only 69 years old, while others don’t have a maximum age at all. Additionally, some policies may enforce an additional excess for seniors depending on the destination or duration of your trip; others may stipulated that there are certain limitations on cancellation cover or other benefits for seniors.

While many policies cover accidental death, there may also be limitations placed on this cover depending on your age. Ultimately, there is no one-size-fits-all when it comes to domestic travel insurance for seniors (or travellers of any age, for that matter). That’s why it is essential to carefully read the PDS of your chosen policy to understand whether you and your travelling party will be covered, and any conditions or exemptions that you should be aware of that may affect your ability to make a claim.

You can read more in our pick of the Best Insurance Providers for Seniors.

The advice and information provided by ForbesAdvisor is general in nature and is not intended to replace independent financial advice. ForbesAdvisor encourages readers to seek expert advice in relation to their own financial decisions and investments.

Data research: Mia Dunn
Fact Checking: Anna Rey