What is Travel Insurance?
Travel insurance is a product designed to help manage the financial risks associated with travel. It typically provides coverage for situations like trip cancellations, overseas medical emergencies, lost or stolen luggage, and other unforeseen events that may disrupt your plans.
Australians travelling domestically or internationally may consider travel insurance for peace of mind and practical protection. Policies vary by provider and may differ based on the level of cover, destination, duration of travel, and traveller health or age.
Overseas healthcare can cost thousands per day. Most Australian health insurance doesn't cover international treatment.
If you must cancel due to illness, natural disasters or emergencies, some policies can provide reimbursement.
Cover may be available for lost, stolen or delayed baggage and essential items while you wait.
Flight cancellations, rescheduled trips or missed connections may be covered depending on your policy.
Insurance may cover the excess costs charged by car rental companies if you have an accident.
Limited cover may be available in case of serious incidents while abroad, depending on the policy.
Bill's take: According to Smartraveller (2023), over 30% of Australians travel without insurance — despite 90% of those who had an issue overseas saying insurance was helpful. A CHOICE survey found policy costs can vary by more than 200% for the same coverage. Comparing properly is the hack.
Types of Travel Insurance in Australia
Here is a list of common types of travel insurance policies available in Australia. Most travellers choose based on frequency of travel, destination, and who's travelling.
Single-Trip Travel Insurance
Covers one trip from your departure to your return. Often used for short-term travel such as holidays or business trips.
- Covers you from departure to return
- Great for one-off international trips
- Usually the most affordable option
Annual Multi-Trip Insurance
Designed for frequent travellers — more economical for those taking multiple trips within a 12-month period.
- Covers unlimited trips in 12 months
- Per-trip cost is often much lower
- Usually capped at 30–90 days per trip
Domestic Travel Insurance
Covers travel within Australia — may include protection for trip cancellations, rental car excess and luggage loss.
- No overseas medical cover needed
- Useful for flights and accommodation
- Often cheaper than international cover
International Travel Insurance
Broader in scope — includes cover for overseas medical expenses, evacuation, cancellations and more.
- Covers overseas medical emergencies
- Emergency evacuation included
- Most comprehensive option available
Cruise Travel Insurance
Cruise-specific policies may include cover for missed ports, on-board medical issues and cabin confinement.
- Covers missed port departures
- On-board medical treatment included
- Cabin confinement compensation
Backpacker / Student Insurance
Designed for long-term travellers and Australians studying overseas — extended cover for longer stays.
- Covers stays of 3–24 months
- Academic cancellation cover available
- Adventure sports often included
Family Travel Insurance
Covers parents and children under one policy — children are often included at no extra cost.
- Kids often travel free on parent policy
- One policy for the whole family
- Covers family medical emergencies
Business Travel Insurance
Tailored for business travellers — may include cover for business equipment, liability and trip disruption.
- Covers laptops and business equipment
- Business liability cover available
- Often includes annual multi-trip
Travel Insurance Comparison
The table below compares major Australian travel insurance providers across key metrics. Prices are indicative for a healthy 35-year-old Australian travelling internationally for 14 days with comprehensive cover.
| Provider | Bill Score | Est. Cost (14 days) | Medical Cover | Cancellation | Luggage | COVID Cover | Verdict |
|---|---|---|---|---|---|---|---|
Cover-More PromotedAustralia's largest travel insurer |
9.2 |
~$85 | Unlimited | ✓ Unlimited | $15,000 | ✓ Limited | Best Overall |
Allianz TravelGlobal insurer, strong medical |
9.0 |
~$92 | Unlimited | ✓ Unlimited | $12,000 | ✓ Yes | Best for Medical |
1CoverGreat value, Australian-based |
8.8 |
~$68 | Unlimited | ✓ $50,000 | $10,000 | ~ Partial | Best Value |
Southern CrossNZ-based, popular in Aus |
8.6 |
~$79 | Unlimited | ✓ $50,000 | $8,000 | ✓ Limited | Great for Families |
Budget DirectAffordable, no-frills option |
7.9 |
~$52 | $5,000,000 | ✓ $25,000 | $5,000 | ✗ No | Budget Pick |
Bupa TravelHealth insurer with travel add-on |
7.8 |
~$88 | Unlimited | ✓ $40,000 | $7,500 | ~ Partial | Good for Bupa Members |
Insure & GoSpecialist travel insurer |
7.6 |
~$61 | $5,000,000 | ✓ $30,000 | $6,000 | ~ Partial | Solid Option |
Fast CoverOnline-only, quick purchase |
7.4 |
~$58 | Unlimited | ✓ $25,000 | $5,000 | ✗ No | Good for Last Minute |
Prices are indicative estimates only. Always read the PDS before purchasing. Updated June 2026.
Travel Insurance Cost Estimator
Adjust the sliders to get a rough estimate of what your travel insurance might cost. Always get a real quote for accurate pricing.
Estimates only. Actual premiums vary by provider, health status, and pre-existing conditions. Always read the PDS.
Why Do People Choose Travel Insurance?
Medical Emergencies
Overseas healthcare can be extremely expensive. Most Australian health insurance doesn't cover international treatment — a single hospital stay in the USA can cost $10,000+ per day.
Trip Cancellations
If you must cancel your trip due to illness, natural disasters or emergencies, some policies can provide reimbursement for prepaid costs like flights and accommodation.
Lost or Delayed Luggage
Cover may be available for lost, stolen or delayed baggage and essential items such as toiletries or clothing while you wait for your bags to arrive.
Travel Delays
Flight cancellations, rescheduled trips or missed connections may be covered, including accommodation and meal costs while you wait.
Rental Car Excess
Insurance may cover the excess costs charged by car rental companies if you have an accident — these can be $3,000–$5,000 without cover.
Peace of Mind
Confidence in managing unforeseen circumstances abroad — knowing you're covered lets you actually enjoy your holiday without worrying about what could go wrong.
How to Compare Travel Insurance
When comparing travel insurance, these are the key factors to consider. Don't just go for the cheapest — the wrong policy can leave you thousands out of pocket.
Destination
Regions like the USA or Europe have much higher medical costs, affecting coverage needs. Make sure your policy covers your specific destination.
Trip Duration
Longer trips may cost more to insure or require specialised cover. Annual multi-trip policies can be better value if you travel more than twice a year.
Pre-Existing Conditions
Some policies exclude or charge extra for medical conditions declared prior to purchase. Always disclose honestly — undeclared conditions can void your claim.
Inclusions & Exclusions
Policies differ significantly in what's included. Read the PDS carefully — some cover more scenarios than others for the same price.
Travel Activities
High-risk activities like skiing, scuba diving or motorbike riding may require additional cover or a specific adventure sports add-on.
Buy Early
Purchase travel insurance when booking your trip — not the day before. This ensures you're covered if you need to cancel before departure.
What Travel Insurance May NOT Cover
Travel insurance may exclude the following situations. Always read your Product Disclosure Statement carefully before purchasing.
Travelling against medical advice — if your doctor advised you not to travel and you go anyway, your claim may be denied.
Undeclared pre-existing conditions — conditions you knew about but didn't disclose when purchasing the policy.
Events related to alcohol or drug use — incidents that occur while you're intoxicated are commonly excluded.
Travel to countries with government warnings — if Smartraveller has a "Do Not Travel" warning for your destination.
Certain high-risk sports or activities — unless you've purchased an adventure sports add-on for activities like skiing, skydiving or motorbike riding.
Unattended belongings — luggage left unattended in public places may not be covered if stolen.
Example Scenarios
Here are three common situations where travel insurance can make a significant financial difference.
Lost Luggage at the Airport
If your baggage is lost or delayed, insurance may cover the cost of essential items such as toiletries or clothing. Some policies pay out within 12 hours of a delay — so you're not stuck in yesterday's clothes.
Unexpected Medical Emergency Overseas
If you fall ill while travelling and need to be hospitalised, travel insurance may cover treatment and emergency evacuation. A single night in a US hospital can cost $10,000–$30,000 without cover.
Trip Cancelled Due to Illness
If you or a close family member becomes ill before departure, you may be reimbursed for prepaid travel costs — flights, accommodation, tours — subject to the policy terms and waiting periods.
Travel Insurance Resources
These government and independent sources can help you research travel insurance further.
Smartraveller
Australian Government's official travel advice and insurance guidance. Check destination warnings before you buy.
CHOICE
Independent consumer advocacy group with detailed travel insurance reviews and comparison methodology.
MoneySmart (ASIC)
ASIC's consumer finance guide to travel insurance — what to look for and how to compare policies.
Australian Financial Complaints Authority
If you have a dispute with your insurer, AFCA provides free, independent dispute resolution.