Rising Domestic Travel Claims Reveal Insurance Coverage Gap
Rising Domestic Travel Claims Reveal Insurance Coverage Gap
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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 Source: Paige Estritori
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Deductible: The amount you must pay out-of-pocket for expenses before your insurance company covers the remaining costs.
