Whether it's an interstate holiday or just a quick trip to the coast, when it comes to planning a  domestic getaway many Aussies are forgetting one major part of their holiday planning, which could save them hundreds or thousands of dollars - travel insurance.  

According to Southern Cross Travel Insurance's (SCTI), most recent Future of Travel report, 76% of Aussies claimed that travel insurance is a high priority when booking an international holiday, however, only 41% had the same sentiment when it comes to booking a domestic getaway - seeing it as an unnecessary expense.

However, when digging into the data SCTI warns travellers that domestic travel insurance shouldn't be seen as an unnecessary expense. According to SCTI data the average dollar amount paid for a domestic travel insurance claim is almost 15% higher than the average international claim. 

Between June 1, 2024, and May 31, 2025, claims were made on 6.34% of Australian domestic policies sold, with an average payout of $2,003. For context, a policy for a family of four (2 adults & 2 dependent children) on a 7-day trip within Australia costs just $146.60 — a small price for peace of mind.

In contrast, for the same time period, 9.34% of Aussies made claims on their international comprehensive policies, with an average payout of $1,752. 

“There's a lot of commentary out there that domestic travel insurance doesn't stack up. We absolutely disagree with this, given our experience supporting customers when things haven't gone to plan,” says Jess Strange, Chief Customer Officer for SCTI.

"Many Aussies believe they don't need insurance when travelling domestically as they would be covered for medical situations under Medicare. 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.”

In one case a SCTI customer who had to cancel their trip for a family of four due to a bad case of gastro, was able to claim back over $28,000 worth of expenses.  These expenses included a trip on the Indian Pacific railway, a cruise at Margaret River and a visit to Rottnest Island - because they had taken out a domestic travel insurance policy. 

“Given the high costs of domestic flights and accommodation in Australia, the average cost of domestic claims can sometimes exceed the average claims cost for international trips. With the cost to travel not showing any signs of reducing, it's just not worth taking the risk, to end up hundreds or thousands of dollars out of pocket, even when travelling domestically.”  

Strange says, “It's important to understand how expensive domestic travel and associated claims can be. For the same period, the average domestic claim came in $250 more than the average international travel claim. There's not a lot between them, especially given how expensive it currently is to travel within Australia. 

Strange shares examples (below) of some of the larger domestic claims made in the last 12 months. While these examples are costly, there's a great travel hack she wants to call out 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.

However, you are still liable for an excess, which is the maximum amount you would have to pay in the event of damage or theft. Excesses can be  as much as $6,000, depending on the rental company and vehicle type.

“SCTI's maximum benefit to cover an excess is $6,000. This means that you don't need to purchase a reduction in excess from the rental company, which can cost around $40 to $71 per day, on top of a car hire charge, depending on the type of car.”

Compare this to the cost of a domestic travel insurance policy for a family of four, which would be around $18 per day. A policy also covers you for so much more – like changes to your journey, or cancellations outside your control, or falling ill before you head off to ski in Perisher for a week.

“So, if you fail to see the bollard in the hotel car park as you head out in a dark cold morning to get up the mountain ahead of the crowds, we have your back.”

To date, in 2025, SCTI has paid out over $43,000 in rental car excess claims for customers, with an average of $ 1,163 per claim. 

Examples of large domestic travel insurance claims

- ENDS -

About Southern Cross Travel Insurance

Southern Cross Travel Insurance (SCTI) has over 40 years of experience supporting more than more than six million travellers worldwide.

SCTI first launched in New Zealand in 1982, before beginning to partner with Australians in 2009. Since then, the insurer has been trusted by over 6 million travellers worldwide+, which includes providing peace of mind to 1.5 million Aussies.

SCTI is proud to have won multiple awards for providing customers with great value and outstanding customer service, including:

• International Travel & Health Insurance Journal Award

Finalist – International Travel & Health Insurer of the Year 2024, 2023

Winner – International Travel & Health insurer of the Year 2022

• ProductReview.com.au Award

Winner – Travel Insurance 2025, 2024, 2023, 2020, 2019, 2018, 2017

• Canstar Star Rating Awards

Outstanding Value – Travel Insurance - International 2024, 2022, 2017

Outstanding Value – Travel Insurance - Seniors 2024, 2023, 2022

Outstanding Value – Travel Insurance - Domestic 2024, 2023, 2022

• Finder Travel Insurance Customer Satisfaction Awards

Highly commended – Loved Brand 2024

Highly commended – Trusted Brand 2024

Highly commended – Quality Service 2024

• Finder Awards

Winner – Best Travel Insurance - Comprehensive 2023

Winner – Best Travel Insurance - Seniors 2023

Highly Commended – Best Travel Insurance - Value 2023

• Mozo Experts Choice Awards

Exceptional Value Medical Only Travel Insurance 2025, 2024

Exceptional Value Annual Multi-Trip Travel Insurance 2024, 2022

Exceptional Value Comprehensive Travel Insurance 2018

Exceptional Value Cruise Travel Insurance 2018

• Sitecore Experience Award

Honourable Mention – Digital Experience Transformation 2021

+Based upon the total number of travellers we have insured across the markets where we operate for all our travel insurance products from January 1995 to June 2024.

If you have any further queries, please contact:

Yvette Schlegelmilch - 0423 954 224

yvette@sedgwickcommunications.com

OR  

Laura Sedgwick - 0451 041 705

laura@sedgwickcommunications.com