The latest data from Southern Cross Travel Insurance’s (SCTI) found that many of us are not insuring ourselves for domestic travel.
The research shows that the average claim on a domestic travel insurance policy was actually $250 or 15% more than claims made for international policies.
The average payout for a domestic claim was $2,003 compared to $1,752 for an international claim, often due to cancellations related to illnesses.
“Many Aussies believe they don’t need insurance when travelling domestically as they would be covered for medical situations under Medicare,” said Jess Strange, Chief Customer Officer for SCTI.
“However, many travellers don’t take into account the amount of money they may lose having to cancel a trip due an unexpected medical situation.”
Here are some of the most expensive domestic travel insurance claims SCTI covered between June 1, 2024, and May 31, 2025:
# $28,363 for a family of four who came down with gastro and had to cancel their Indian Pacific train trip, a Margaret River cruise and a visit to Rottnest Island
# $20,512 for a couple going on a 14 day tour of the Kimberley’s who had to cancel their trip due to a dental emergency
# $21,070 for a customer who was unable to travel due to a gastric illness
# $19,245 for a customer who had to cancel a bus trip due to a bowel condition
# $7,144 for a customer who was unable to fly due to a respiratory infection.
While these examples are costly, Ms Strange suggests a travel hack for Aussie travellers.
“Many people don’t realise that purchasing one of our domestic travel insurance policies essentially reduces your rental vehicle excess to zero, or almost zero.”
