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Domestic Travel Insurance
Domestic Travel Insurance
Written by
Rachel Gregg
Edited by
Ellie Garran
Reviewed by
Adrian BennettEasily compare Travel Insurance
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Long story short
Medicare can’t fix your travel mishaps
Medicare will cover you for medical accidents, but not lost bags or delayed flights – that’s where domestic travel insurance comes in.
Travel insurance for Australia won’t cost you much
With basic policies averaging at around $38 and comprehensive ones at around $69, it’s a small price to pay to help provide peace of mind while travelling.
Find domestic cover for a single or year-long Aussie adventure
If you’ve got a handful of trips planned in the year or just a single one, you can find a domestic policy to match your plans.
What is domestic travel insurance?
Whether you’re planning to bungee jump off the Sydney Opera House or enjoy a flat white in Carlton, a holiday on home soil can involve around the same risk level as travelling overseas. While you might already know the healthcare system, the road rules, and where to find the best coffee – that doesn’t mean you should skip travel insurance.
Domestic travel insurance policies are there to help fill in the gaps that Medicare can’t assist with. You’ll find that domestic travel insurance policies work the same way as international ones, with single or multiple trip options available. The main difference is that they won’t cover medical expenses, since that’s already taken care of by Medicare and if you have it, private health insurance can also assist. That leaves coverage for rental car excess, cancellations, delays, and luggage. You might also find you can’t take out domestic insurance unless you’re travelling a certain distance from home (often 100 or 250 km) or staying in paid accommodation.
Rental car excess
If your hire car comes back with a few dents or worse, your policy can help cover the excess fee from your rental provider.
Cancellation cover
If you have to cancel your holiday, pre-paid tours or accommodation due to unforeseen events or travel delays, your policy could cover the costs.
Lost or damaged luggage
If your bags fly off to another state or get damaged, your policy will include certain limits to help replace or fix them.
Personal liability
If you accidentally injure someone or damage property, you could be covered for legal costs; just make sure to check the limits.
Medical coverage
You may not find medical coverage on domestic travel insurance policies, since Medicare and if you have it, private health insurance help take care of that.
Undeclared medical conditions
If you have a pre-existing medical condition and don’t let your insurer know about it, any related claims could be rejected.
Travel documents and cards
Some insurers might not cover lost travel documents and travel transaction cards, since you technically don’t need them to travel domestically.
Breaking the law or being under the influence
If you want to make a claim but were under the influence or broke the law at the time of the event, your insurer most likely won’t cover it.
Cruise cover
Even though Medicare will have your back if something medically goes wrong on land, it might not be the same once you hit Australian waters. So it makes sense that extra coverage for cruises is highly recommended. As well as medical costs, it’ll cover you for prepaid onshore cancellations, cabin confinement or ship-to-shore evacuation.
Snow sports
If you’re heading to Hotham or Perisher, getting extra cover for your ski trip will help cover the things that Medicare won’t. This can include equipment cover if your board is damaged, piste closures from bad weather, and cancellations out of your control.
Adventure sports
Just like on an international plan, not all activities will be covered under your domestic travel insurance. If you’re looking to get some thrills by scuba diving in the Great Barrier Reef or skydiving, make sure to read what’s included in your policy; you’ll likely need to get additional coverage.
Rental car excess
If your hire car comes back with a few dents or worse, your policy can help cover the excess fee from your rental provider.
Cancellation cover
If you have to cancel your holiday, pre-paid tours or accommodation due to unforeseen events or travel delays, your policy could cover the costs.
Lost or damaged luggage
If your bags fly off to another state or get damaged, your policy will include certain limits to help replace or fix them.
Personal liability
If you accidentally injure someone or damage property, you could be covered for legal costs; just make sure to check the limits.
Medical coverage
You may not find medical coverage on domestic travel insurance policies, since Medicare and if you have it, private health insurance help take care of that.
Undeclared medical conditions
If you have a pre-existing medical condition and don’t let your insurer know about it, any related claims could be rejected.
Travel documents and cards
Some insurers might not cover lost travel documents and travel transaction cards, since you technically don’t need them to travel domestically.
Breaking the law or being under the influence
If you want to make a claim but were under the influence or broke the law at the time of the event, your insurer most likely won’t cover it.
Cruise cover
Even though Medicare will have your back if something medically goes wrong on land, it might not be the same once you hit Australian waters. So it makes sense that extra coverage for cruises is highly recommended. As well as medical costs, it’ll cover you for prepaid onshore cancellations, cabin confinement or ship-to-shore evacuation.
Snow sports
If you’re heading to Hotham or Perisher, getting extra cover for your ski trip will help cover the things that Medicare won’t. This can include equipment cover if your board is damaged, piste closures from bad weather, and cancellations out of your control.
Adventure sports
Just like on an international plan, not all activities will be covered under your domestic travel insurance. If you’re looking to get some thrills by scuba diving in the Great Barrier Reef or skydiving, make sure to read what’s included in your policy; you’ll likely need to get additional coverage.
Helpful tip
Annual multi-trip travel insurance policies aren’t just for big overseas trips. If you spend a large part of the year flying around Australia, a domestic annual travel policy could be more convenient for your plans. As long as you’re travelling a certain distance from home or paying for accommodation, you can take unlimited trips around the country at the drop of a hat.
Adrian Bennett
General Manager for General Insurance
How much does domestic travel insurance cost?
Comparing policies from iSelect’s range as at August 2025, comprehensive domestic travel insurance for a solo-traveller for a one-week trip comes in at around $70 on average, while basic cover is available for around $39 on average.1Indicative quotes based on a 30-year-old solo traveller with no extra coverage needed. Comparison conducted via the iSelect website, August 2025. But this price could rise a bit more if you need to add some extra coverage for a cruise or snow sports.
It’s important to look at your planned activities, the value of your belongings, and your budget, because all will play a part in your final policy price. So make sure to have a read through the details in the product disclosure statement (PDS) so you know which conditions and activities are included in your cover.
Do I need travel insurance for domestic trips?
Overseas travel insurance is a no-brainer, given the cost of medical treatment outside Australia if something were to go wrong. So with Medicare available for Australians on home soil, is domestic travel insurance worth it? The choice is yours, but here are some pros and cons to help you make your decision.
Pros
- Help have peace of mind that if your plans get changed or cancelled, you won’t be out of pocket.
- Some travel insurers don’t have an age limit for domestic policies.
- Rental car excess will usually be included in your policy, no extra add-on needed here!
Cons
- You’ll probably have the same exclusions as international travel insurance policies, like unattended luggage that gets stolen.
- Limits for certain benefits might be lower than international policies
- For cheap, low-cost holidays (like camping), the cost might outweigh the benefit of insurance.
Domestic travel insurance for every Aussie adventure
From cancelled flights to stolen bags, even trips that are close to home can throw a curveball into your itinerary plans. Whether you’re planning a weekend away in Tassie or a road trip around Australia, it’s worth considering domestic travel insurance for your trip. Head to iSelect to compare travel insurance policy options from our range of providers so you can enjoy your time off.
Easily compare Travel insurance quotes
Save time and effort by comparing a range of travel insurance policies with iSelect
iSelect does not compare all travel insurers or policies in the market. Travel insurance is only available through our website and not all policies are available at all times or in all areas. Not all policies available from our partners are compared by iSelect and due to commercial arrangements and customer circumstances not all policies compared by iSelect will be available to all customers. Click here to view iSelect’s range of providers.
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