Travel Insurance Online :: News
SHARE

Share this news item!

Rising Domestic Travel Claims Reveal Insurance Coverage Gap

SCTI Urges Australians to Prioritise Domestic Travel Insurance

Rising Domestic Travel Claims Reveal Insurance Coverage Gap?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Southern Cross Travel Insurance (SCTI) has reported a notable gap between Australians' attitudes towards domestic travel insurance and the claims being paid.
In the first eight and a half months of 2025, SCTI settled over $240,000 in claims for local and interstate trips.
Despite this, only about 41% of Australians consider travel insurance a high priority for domestic trips, compared to 76% for international travel.

Examples of domestic claims include a $30,500 claim for a family who cancelled a comprehensive travel package due to illness, and a $22,000 payout to a couple who cancelled an interstate holiday after a family emergency. These cases highlight the financial risks associated with domestic travel disruptions.

SCTI's Future of Travel report indicates that many Australians assign a lower priority to insurance for domestic trips. Chief Customer Officer Jess Strange emphasised that while Medicare covers medical costs, it does not cover expenses related to cancelled flights, accommodation, or pre-paid tours. The average domestic claim in 2025 stood at $2,376, higher than the average international claim of $1,872, underscoring the potential financial impact of domestic travel disruptions.

With the cost of travel not showing signs of reducing, SCTI advises travellers to consider domestic travel insurance to mitigate potential financial losses from unforeseen events.

Published:Saturday, 28th Mar 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

Dengue Vaccine News Adds a New Pre-Trip Insurance Check
Dengue Vaccine News Adds a New Pre-Trip Insurance Check
04 Nov 2026: Paige Estritori
Recent Australian guidance on the dengue vaccine Qdenga has given travellers another reason to treat health preparation and travel insurance as connected parts of trip planning, particularly for holidays in South-East Asia, the Pacific and other dengue-prone regions. The issue is not that vaccination changes the need for cover, but that infectious disease risk, outbreak declarations and timing can all affect how well protected a traveller may be if plans change or medical help is needed overseas. - read more
Saudi Arabia Warning Puts Travel Insurance Timing in Focus
Saudi Arabia Warning Puts Travel Insurance Timing in Focus
28 Oct 2026: Paige Estritori
Australia's latest Saudi Arabia travel warning has turned a destination safety update into a practical travel insurance issue for Australians with Middle East itineraries, religious travel plans, business trips or transit arrangements. Smartraveller's current advice is to not travel to Saudi Arabia because of the volatile security situation, with travellers told to postpone planned travel, including travel for religious purposes. - read more
What Airline Strike Disruptions Mean for Travel Insurance
What Airline Strike Disruptions Mean for Travel Insurance
16 Sep 2026: Paige Estritori
Renewed attention on airline and airport industrial action overseas is a timely reminder for Australian travellers to look closely at how their travel insurance responds when transport plans unravel. Strikes can affect flights, baggage handling, airport security, public transport connections and tour schedules, turning a carefully planned itinerary into a costly scramble for new accommodation, meals and replacement bookings. - read more
Why Skipping Travel Insurance Can Be a Costly Saving
Why Skipping Travel Insurance Can Be a Costly Saving
09 Sep 2026: Paige Estritori
Recent consumer reporting has again highlighted a familiar travel risk: some Australians are looking for savings by travelling without insurance, or by choosing the cheapest cover without checking whether it suits the trip. With airfares, accommodation and day-to-day holiday costs still stretching household budgets, it is understandable that travellers are scrutinising every expense. The problem is that travel insurance is often treated as optional until something goes wrong. - read more
Scooter Accidents Put Travel Insurance Fine Print Back in Focus
Scooter Accidents Put Travel Insurance Fine Print Back in Focus
02 Sep 2026: Paige Estritori
Recent consumer attention on scooter and moped accidents overseas has highlighted a travel risk many Australians underestimate until something goes wrong. Hiring a scooter in Bali, Thailand, Vietnam or parts of Europe can feel like a simple holiday convenience, but insurers may treat it very differently from catching a taxi or joining a tour. - read more


Travel Insurance Articles

How to Choose the Right Travel Insurance for Your Overseas Holiday
How to Choose the Right Travel Insurance for Your Overseas Holiday
Travel insurance is an essential component of any overseas trip, especially for Australians. While exploring new destinations and experiencing different cultures can be exciting, it's crucial to be aware of the potential risks and challenges that can arise along the way. From unexpected medical emergencies to lost luggage or trip cancellations, unforeseen events can quickly turn your dream holiday into a nightmare. - read more
How travel advice and known events can affect travel insurance
How travel advice and known events can affect travel insurance
Government travel advice, destination warnings and publicly known events can affect whether travel insurance responds to cancellations, medical costs, disruptions or other claims. Here's what Australian travellers should check before and after buying cover. - read more
Protect Yourself: Understanding Travel Insurance Fraud Risks in Australia
Protect Yourself: Understanding Travel Insurance Fraud Risks in Australia
Travel insurance fraud involves deceitful practices that take advantage of insurance policies designed to offer protection against travel-related risks. It can manifest in various forms, such as exaggerated claims or false reporting of lost items, aiming to gain an undeserved financial benefit from the insurer. - read more
Single trip and annual travel insurance explained
Single trip and annual travel insurance explained
Single trip and annual travel insurance can both protect Australians against unexpected travel costs, but they work differently. This guide explains the key policy differences, including trip frequency, duration limits, destinations, pricing, exclusions and what to check before choosing cover. - read more
How to Find the Best Travel Insurance Deals in Australia
How to Find the Best Travel Insurance Deals in Australia
Travelling is one of life's greatest joys, but it's not without its risks. This is where travel insurance comes into play for Australians. It ensures peace of mind, knowing that you're covered for unforeseen events such as medical emergencies, trip cancellations, or lost luggage. - read more

Knowledgebase
Insurance Claim:
Notification to an insurance company requesting payment of an amount due under the terms of the policy.