Do you need travel insurance for a domestic holiday?

Posted 29 November, 2024 Sasha Oelsner

You’re only travelling interstate. Do you need travel insurance? 

Only a third of South Australians purchased travel insurance when travelling domestically, while three quarters purchased cover when heading overseas, according to RAA.

RAA Travel General Manager Gina Norman says uninsured travellers may risk paying a hefty price if things don’t go to plan.

“Many of the same things can go wrong on a local holiday as they can when you travel overseas,” she says.

“For instance, getting sick or losing luggage can happen anywhere.”

What can be covered by domestic travel insurance?

Depending on the policy, domestic travel insurance can cover a range of mishaps, including:

• lost, damaged or delayed luggage
• car hire excesses
• personal liability if you accidentally damage someone else’s property or injure someone
• costs associated with amending or cancelling flights, accommodation and activities due to illness or other unforeseen circumstances.

Don’t forget to read the policy before you purchase as exclusions apply.

What type of trips might benefit from travel insurance?

Some trips you may consider getting cover for include:

• flying to visit friends or family interstate
• taking a romantic getaway while carrying valuables like jewellery (that perhaps your other half doesn’t know about yet), subject to policy limits and conditions
• backpacking, four-wheel-driving or camping in remote locations in a hired campervan.

What isn’t covered by domestic travel insurance?

Domestic travel insurance doesn’t cover medical expenses incurred while you’re away.

However, Australian residents have access to Medicare or private health insurance if they’re a member of a health insurance fund in case they need medical treatment or a hospital stay while they’re away.

When should I book domestic travel insurance?

Since the beginning of 2024, 31 per cent of insurance claims for domestic travel occurred before travellers even departed for their trip, according to RAA.

Gina encourages holiday-makers to get in the habit of taking out domestic insurance early.

“Taking out travel insurance at the last minute leaves travellers exposed if something goes wrong before buying the policy,” she says.

If the region you’re intending to visit is suddenly ravaged by bushfire or a flood, receiving compensation for accommodation or flight delays might not be possible if you haven’t bought insurance prior to travelling.

Australians spent approximately 400 million nights away from home in the last financial year.

Gina says this provides many opportunities for travelling mishaps.

“Trips away can be a big financial investment,” she says. “Travellers should consider how they wish to protect it.”

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_{The information provided is general advice only. This insurance is issued by Tokio Marine & Nichido Fire Insurance Co., Ltd ABN 80 000 438 291 (Tokio Marine), AFSL 246548. Royal Automobile Association of South Australia Incorporated acts as agent for Tokio Marine and may receive a commission which is a percentage of the premium paid and may also receive a portion of the underwriting profit. Consider the Combined Financial Services Guide and Product Disclosure Statement, and Target Market Determination, available on the RAA website when deciding whether to purchase this product. Terms and Conditions, Limits and Sublimits apply.}