Domestic travel insurance | Simples! (2024)

Travel insurancefor Australians holidaying in Australia is important to consider. Domestic travel insurance provides you with cover for unexpected incidents or accidents while you’re travelling around Australia and can be a great safety net to ensure your holiday stays on track.

Some of these accidents could be if your plans are disrupted by lost or stolen luggage, flights cancelled due to natural disasters or severe weather, or your rental vehicle gets damaged.

It’s important to remember that your coverage will depend on what insurance policy you take out. The following points are a guide on what domestic travel insurance could cover; however, always ensure you read your policy’s PDS.

Lost, damaged or stolen belongings

Whether it’s during transit or after you’ve arrived at your Australian destination, losing or having your personal items stolen is a common fear, particularly your credit card which can be a major inconvenience while you’re travelling. That said, a domestic plan can provide some financial defence when having to replace any lost, damaged or stolen items, up to the item limits listed in your PDS.

Cancellation cover

Your domestic policy could potentially reimburse you for trip cancellation fees, cancellation costs or lost deposits (depending on the policy you hold) if Australian traveltrip delays and cancellationswere caused by circ*mstances out of your control.

For example, if you book concert tickets in another city on a domestic trip, but your flight is cancelled and you incur additional expenses to fly on another airline to get to the concert on time, your travel insurance policy could cover some of your additional expenses.

Rental car insurance excess

When you hire a car, you’ll generally have to take out insurance from the rental company in case your vehicle is damaged. It’s worth noting that if an accident happens, you may owe an excess to the rental car company.

Domestic travel insurance could cover the cost of anyrental vehicle excess. Keep in mind that rental car excess cover may come as an optional extra on your policy.

Domestic travel insurance policies generally don’t includecruise coveras a standard feature. However, it may be added as an extra for travellers specifically looking to go on a cruise holiday.

This addition could be crucial, as Medicare and hospital insurance won’t cover medical expenses for any injuries or accidents sustained while onboard a ship; this applies to cruises within Australian waters as well, not just international waters. Additionally, having cruise cover will ensure that any claims for cancellation fees for delayed or cancelled cruises can be assessed.

Every travel insurance policy has instances where you may not be covered. Commonexclusionsfor domestic travel insurance policies are:

• Cases where you’re already compensated.If your flight or other booked activities have been delayed or cancelled, or valuables have been lost, your travel insurance may cover any costs incurred. However, this won’t be the case if the airline or travel service provider already reimbursed you.
• Unlicensed operation of vehicles.When operating any vehicle, always make sure you have the license required. Otherwise, any accidents you may have might not be covered by your travel insurance policy.
• Scuba diving without a licensed instructor.To scuba dive safely, always do so under the supervision of a licensed professional. Otherwise, you may not be covered by your policy.
• Injuries from activities not covered by your policy.There are specific activities (such asadventure activities, or extremewinter sportslike skiing or snowboarding) you might need to disclose with your travel insurance provider or purchase as an add-on to be covered.
• If you’re under the influenceof alcohol or other drugs when you injure yourself, you may not be covered.