Domestic travel insurance

With international borders opening again, Australians everywhere are excited to book their next travel getaway. Whether that be domestic or international, trips away are being planned and booked in.

Over the past couple of years, we have all witnessed the effects on travel and how the unexpected can disrupt our travel plans, even when you’re travelling domestically. Whether it’s a single trip or multiple trips to various locations, it’s a good idea to take out a domestic plan for travel insurance.

Imagine that your camera was stolen on your Aussie beach holiday adventure to the Gold Coast? Would you dread missing a State of Origin decider due to a delayed, diverted, or cancelled flight? Travel insurance could cover you in these instances.

With domestic travel is about to open up again, let’s take a look at how domestic travel insurance could help you.

What is domestic travel insurance?

It may be easy to overlook at times, but travel insurance for Australians holidaying in Australia is important to consider, especially if the last few years have taught us anything. Domestic travel insurance provides you with cover for unexpected incidents or accidents while you’re travelling around Australia. You might be a seasoned Aussie, giving your own country some love, or someone visiting from overseas, but that doesn’t mean you shouldn’t protect yourself against the unexpected. Australia.

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. Domestic travel insurance can be a great safety net to ensure your holiday stays on track.

What can domestic travel insurance cover?

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 Product Disclosure Statement (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. In particular, your credit card  – which can be a major inconvenience while you’re travelling. That said, domestic travel insurance can provide some financial defence when having to replace any lost, damaged, or stolen items. N.B. Your policy may not cover unattended personal effects that are lost, damaged, or stolen. Remember to always check the full details in your Product Disclosure Statement (PDS) to know exactly what you’re’ covered for, any sub-limits, what is excluded and other important information about your policy like any additional expenses and the insurance excess.

Cancellation fees/the cost of delays

Your domestic travel insurance policy could potentially reimburse you for trip cancellation fees, cancellation costs,  or lost deposits (depending on the policy you hold) if Australian travel trip delays and cancellations were caused by circumstances 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 must pay additional money to fly on another airline to get to the concert on time, your travel insurance policy could pay out a lump sum to make up for the loss of the delay expense.

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 is wise to do so as you’ll be driving on unfamiliar roads in a car you’ve’ never used. 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 any rental car, which means you have one less thing to worry about during an already stressful time following an accident.

Keep in mind this may come as an optional extra on your policy.

Cruise

Domestic travel insurance policies generally don’t include cruise cover as 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, and this applies to cruises within Australian waters, not just international waters. Additionally, having cruise cover will ensure that any claims for cancellation fees for delayed or cancelled cruises can be assessed.

Domestic travel insurance for seniors

Retirement can be a great time to go on that Australian road trip you’ve always wanted to do. It’s important to know that seniors under 99 years of age, could still be covered by domestic travel insurance.

While there may be reduced limits for your level of cover for Australians over 70, senior travellers can still have peace of mind knowing various expenses such as delayed flights, lost luggage and activity cancellations may be covered.

Domestic travel insurance exclusions

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

• COVID-19 related delays and cancellations.  With the pandemic still causing havoc, many domestic travel insurance policies still exclude most COVID-19 related losses. These could include cancelled flights as a result of border closures, or having to postpone your trip if you catch coronavirus due to an outbreak at your intended destination. However, due to the ever-changing nature of the way insurers are handling the pandemic, frequently check with your insurer to remain up-to-date about any exclusions that may arise.
• Cases where you’re already compensated. If your flight or other booked activities have been delayed or cancelled, or valuables have been lost, domestic travel insurance may cover any costs incurred. However, this won’t be the case if the airline or travel service providers 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. The Great Barrier Reef is one of the seven wonders of the world, and it’s an essential sight for any Australian bucket list. To explore the iconic landmark safely, always do so under the supervision of a licensed professional. Otherwise, you may Otherwise you may not be covered by your policy.
• Injuries from activities not covered by your policy. There are specific activities, such as adventure activities, or extreme winter sports you might need to disclose with your travel insurance provider. For example, if you’re’ looking to carve the slopes at Perisher, you’ll’ probably need snow sports cover included in your policy.
• If you are under the influence of alcohol or other drugs when you injure yourself, you will need to disclose this to your provider too. As you may or may not be covered if you have an accident under the influence.
• Domestic travel insurance won’t cover all doctor or hospital expenses for all medical conditions.  However, if you have a Medicare card, you’ll have access to subsidised healthcare all over Australia.

That said, Australian residents (except those who live in Queensland or Tasmania who have ambulance trips covered by their state governments) who don’t have ambulance cover may find themselves out of pocket in emergencies where they may have to call an ambulance for emergency assistance.

Find out more about domestic travel insurance exclusions by checking out our common travel exclusions guide. Remember to always read the Product Disclosure Statement (PDS) of your policy to know exactly what you are and aren’t covered for.