As school leavers plan their first big trip, new data shows young travellers still risk facing costly surprises overseas.
One in four young Australians travelled overseas without travel insurance on their last trip, new research from 1Cover Travel Insurance shows.
The survey of 1,750 Australians found that just 75% of travellers aged 18–29 had cover for their last overseas holiday, compared with 83% of Australian travellers overall.
That leaves a quarter of young travellers potentially exposed to medical bills, cancellations and lost belongings while abroad.
The findings come as thousands of school leavers prepare for their end-of-year celebrations, with many set to travel overseas independently for the first time.
Natalie Ball, 1Cover COO, is urging young travellers and their parents or carers to make travel insurance a priority before departure, warning that the financial consequences of travelling uninsured can be substantial.
“Young travellers might assume nothing will go wrong on their trip, but accidents and unexpected illnesses can happen to anyone and medical costs overseas can be enormous,” Ms Ball says.
“Parents and carers can play an important role by ensuring their school leaver has appropriate travel insurance and understands exactly what their policy covers.
“Not all policies offer the same protection. Medical-only cover for example, may not include cancellation or lost luggage, while complimentary travel insurance provided through a credit card may come with important restrictions.
“Some policies only cover dependent children when they travel with the cardholder, so parents and carers should check the policy terms carefully before their child heads overseas.”
However, there are encouraging signs that young travellers are becoming more cautious, with the proportion travelling uninsured falling from 30% in 2024 to 25% in 2025.
Ms Ball welcomed the improvement but cautioned that taking out travel insurance is only the first step.
“A first overseas trip is a major milestone and the last thing anyone wants is for an accident or unexpected illness to turn it into a financial nightmare. We want our holidays to be remembered for all the right reasons.”
The potential cost of getting caught out is clear in 1Cover’s claims data.
More than 11,000 claims were lodged with the insurer in 2025, including a $399,328 claim for pneumonia on a cruise ship in Japan and a $327,846 claim for multiple injuries sustained in a ski accident in Canada.
“Medical costs can escalate quickly overseas, and the potential cost of an emergency varies depending on where you’re travelling and what you’re doing,” added Ms Ball.
“It’s worth understanding those risks before you go, rather than finding yourself facing a bill you can’t afford.”
1Cover’s tips for school leavers (and their parents)
- Buy cover when you book: Cancellation cover can start from the day you purchase your policy, so you may be protected if something forces you to cancel before departure. Check the policy terms and exclusions.
- Don’t assume your credit card has you covered: Complimentary credit card travel insurance can have eligibility requirements, exclusions and limits. Check whether it covers dependent children travelling independently and whether you meet the activation requirements.
- Know what’s excluded: Claims involving excessive alcohol or drug use, or scooter accidents where the rider is unlicensed or otherwise breaches policy conditions, may not be covered. Check the specific exclusions in your policy.
- Keep your policy details handy: Save your insurer’s emergency contact details and policy information on your phone so you can access them quickly if something goes wrong. Some hospitals may ask for insurance details or payment arrangements before treatment.
- Check Smartraveller before you go: Read the latest travel advice for your destination and make sure you understand any relevant safety warnings, entry requirements and local risks.
