As most Australians already have medical cover that is valid no matter where in Australia they are–whether via Medicare or private health insurance–there are still many other reasons to purchase domestic travel insurance that don’t relate to medical needs. Some of these factors may include:
Cancellations
Your domestic travel insurance policy can cover you if unforeseen events arise that cause you to have to cancel your trip. As Smarttraveller puts it, if you’ve already spent a lot on your holiday, it’s not too much extra to buy travel insurance to then be able to recoup potential losses.
It’s important to check your product disclosure statement (PDS) to understand what and what will not qualify as a reason for cancellation. For example, some policies may no longer cover you having to cancel due to contracting Covid-19, as it is no longer a requirement to isolate if you contract the virus.
Delays and Change of Plans
Similar to cancellations, domestic travel insurance can also cover you if you have to change your holiday plans or are subject to delays. For example, if you have to travel home early due to sickness or injury, your insurance policy may be able to cover the cost of the new flight.
Another example is if you are travelling for a concert or an event that is already pre-paid and you are subject to travel delays that cause you to miss the event. In this instance, your policy may reimburse you for lost costs.
Lost Belongings
Domestic travel insurance policies can also cover lost items, which is important if you are travelling with valuables. Many policies offer this cover in terms of three different categories: lost luggage, lost valuables, and lost cash. Additionally, the cover usually also extends to belongings that have been stolen or damaged.
There are often sub-limits applicable to certain items, such as electronics.
Car Hire Excess
If you are hiring a car for your travels, then domestic travel insurance is a smart choice of investment (if it offers car hire excess coverage). This is because if any damage occurs to the vehicle, your travel insurance policy will cover the cost of your excess up to a certain amount.
If you don’t have travel insurance with a car hire excess coverage, you would have to pay the car hire company’s full excess charge for any damage that occurs which is usually quite a costly charge or pay more at the vehicle car hire provider to reduce your excess to zero (if this is possible).
Personal Liability
A domestic travel insurance policy will usually provide cover up to a certain amount if you accidentally cause damage to a property or accidentally injure someone else. It’s worth noting that this cover is often included in comprehensive car insurance policies, so if you are travelling by road in your own vehicle and have a comprehensive car insurance policy, it may not be a necessary inclusion.
Cruise, Snow and Adventure Cover
If you are going on a specific type of trip, it’s important to make sure that your domestic travel insurance policy will cover the activities you intend to take part in. For example, if you are heading for a snow holiday, or on an ‘adventure’ trip such as a motorcycle tour, it’s important to make sure you are covered.
While these kinds of trips may not automatically be covered in a domestic travel insurance policy, they are often able to be covered upon purchasing an additional pack on top of the base policy such as “snow cover” or “adventure activities”. A brief note regarding cruise cover: even if you are cruising in Australian waters, you may not be covered by Australia’s Medicare system because the cruise company is not obligated to have a Medicare-registered GP on board, or you may cross into international waters. This is why cruise cover is especially important.
