SCTI Highlights Increase in Domestic Travel Insurance Claims and Coverage Gaps

Notably, many of these claims pertained to non-medical costs, such as cancellations, transport changes, and damage to rental vehicles. For instance, a family of four had to cancel a comprehensive travel package, including the Indian Pacific train and a Margaret River cruise, due to a severe illness, resulting in a claim of $30,500. Another case involved a couple who cancelled an interstate holiday after a family emergency, leading to a $22,000 payout for non-refundable expenses.

Despite these substantial claims, SCTI's research indicates that many Australians assign a lower priority to domestic travel insurance compared to international coverage. While 76% of respondents consider travel insurance essential for overseas trips, only 41% hold the same view for domestic journeys. This perception is reflected in sales data, with domestic policies accounting for merely 2% of SCTI's sales in 2025.

Jess Strange, SCTI's Chief Customer Officer, emphasised that while Medicare covers medical expenses within Australia, it does not extend to other financial exposures associated with travel disruptions. She highlighted that the average domestic claim in 2025 was $2,376, surpassing the average international claim of $1,872, underscoring the potential financial risks of travelling without adequate insurance.

These findings highlight the importance of securing comprehensive travel insurance for domestic trips. Unforeseen events such as cancellations, medical emergencies, or damage to personal property can lead to significant out-of-pocket expenses. Travellers are encouraged to assess their insurance needs carefully and consider obtaining coverage that aligns with their travel plans, ensuring peace of mind during their journeys.