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Rising Domestic Travel Claims Reveal Insurance Coverage Gap

SCTI Urges Australians to Prioritise Domestic Travel Insurance

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: If this information affects you, seek advice from a licensed professional.

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In law and economics, insurance is a form of risk management primarily used to hedge against the risk of potential financial loss.

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