Travel Insurance5 min read10 May 2026
Do You Really Need Travel Insurance for Domestic Trips?
Flight cancellations, stolen luggage, and hospitalisation can happen at home too. Here's when domestic cover is worth it.
Most Australians don't buy travel insurance for domestic trips. For a weekend in Melbourne, that's probably fine. For an expensive multi-week trip, it's worth reconsidering.
What domestic travel insurance covers that you might not expect
- •Flight cancellation: Airlines are only legally required to refund you if they cancel. If you cancel (illness, family emergency), non-refundable fares and hotels are on you — unless you have travel insurance.
- •Medical evacuation: Medicare covers treatment, but not the helicopter or air ambulance from a remote location. A medical evacuation from the Kimberley to Perth can cost $30,000+.
- •Rental car excess: Rental car excess can be $3,000–$5,000 per incident. Domestic travel policies often include rental car excess cover.
- •Accommodation costs: If you're hospitalised during a domestic trip, travel insurance can cover additional accommodation and transport costs for travelling companions.
When it's probably not worth it
- •Short, cheap, flexible trips with refundable bookings
- •Driving trips with your own car (your car insurance and health insurance cover the main risks)
- •Trips where accommodation and flights are fully refundable up to departure
Check your credit card
Many premium credit cards (Amex Platinum, Citi Prestige, some Visa Signature cards) include complimentary domestic and international travel insurance when you pay for the trip with the card. Read the PDS — the coverage can be surprisingly good.
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