What You Need to Know about Domestic Travel Insurance: A Guide


What You Need to Know about Domestic Travel Insurance: A Guide

Australians travel domestically for various reasons, even for a quick hike in a rainforest or a weekend beach escape. Due to an increase in the demand for domestic travels, more Australians begin to consider the option of availing domestic travel insurances.

Domestic travel insurance policies are designed to provide financial cover for a range of unexpected accidents and incidents, all of which could happen during your travel across the country. Such instances include illness, loss of luggage in transit, as well as cancelled flights and pre-booked activities. 

If you wish to get your own domestic travel insurance policy for your future travels, here are some essential information you need to know before availing one:

What does a standard domestic travel policy cover?

The coverage of domestic travel insurance varies depending on the policy. In general, however, they cover financial protection for the following items: 

  • Lost, damaged or stolen personal belongings: Claim process can be difficult and to make the process easier, make sure that you provide proof of purchase for expensive items, such as a mobile phone, camera, or laptop. Be mindful of your policy’s limits per item as well. If you lose an $890 laptop, for instance, your domestic policy may only cover up to $500 for replacement. To increase the limit on an item, you will need to pay an additional amount for premium privileges.
  • Trip cancellations: Your domestic travel insurance will be able to cover the costs associated with any cancelled bookings, which includes flights, tours, and accommodations due to unexpected events. Such unexpected events include death, natural disasters, illness, and even the cancellation of pre-approved leaves for work.
  • Legal liability: Some policies provide you with protection for negligence and unintentionally caused damage or injury to a person or property. However, the person in question cannot be a member of your family or part of your travelling party, nor can the property belong to them. 

These are only some of the coverage of domestic travel insurance policies. The entire cover, exclusions, and excesses vary between policies, so it’s best to read the terms and conditions of each policy thoroughly before choosing.

What does domestic travel insurance not cover?

Unfortunately, domestic insurance policies do not cover medical expenses incurred within Australia. For Australian citizens, however, you can use your private health insurance or Medicare care to help cover the medical costs involved. For international visitors on working or student visas, you can claim specific medical costs under OSHC (overseas student health cover) or working visa health cover policies, which can be claimed through various Australian health funds across the nation.

As with most insurance policies, domestic travel insurance does not cover any incidents of the following:

  • Breaking the law
  • Being under the influence of illicit substances, such as drugs and alcohol
  • Failing to disclose pre-existing conditions
  • Failing to take reasonable steps to ensure the protection of your belongings
  • Ignoring official warnings or advice intentionally

Moreover, certain exclusions also apply to certain activities, such as golfing and skiing.

What is the difference between domestic and international travel insurance?

One major difference between the two is that international travel insurance is available for those travelling overseas, while domestic travel insurance only covers flights travelling within Australia. These two types of insurance policies also differ in coverage. For instance, most international travel policies include a fixed amount of medical costs coverage, which includes hospital and dental expenses. Domestic policies, on the other hand, exclude these benefits.

Does domestic travel insurance cover cruises? 

Unfortunately, a cruise is rarely covered in domestic travel policies. Some insurance companies offer cruise cover as an optional extra, which can be used to pay medical expenses sustained onboard. Moreover, cruise cover may include cancellation costs and any lost or damaged property while onboard. 


Unexpected situations can happen at any time, so it’s best to always be prepared. A domestic travel insurance certainly prepares you for anything, be it a lost item or cancelled bookings, making it a good choice of companion when travelling. Any incurred medical costs can quickly be covered by health insurances and your Medicare. Lost and damaged items will remain as is and cancelled bookings will be money lost without your domestic travel insurance!

If you’re looking for a Sydney travel agent who can help you get domestic flight tickets without much hassle, get in touch with us today! We can also help you get cheap business class tickets to Asia, Europe, and the USA, all with travel insurance policies!