Australians are passionate about domestic travel. Last year alone, we took more than 104 million day trips, 60 million visits to friends and family and 23 million business trips*.
From quick city breaks, business trips, to extended road trips and interstate and regional holidays to visit friends and family, the appeal of domestic travel is undeniable.
However, while most of us wouldn’t dream of heading overseas without travel insurance, research from PassportCard Australia uncovered that a surprising 51% of Australians skip insurance for domestic trips, leaving themselves vulnerable to unexpected expenses.
Michael Storozhev
It’s a risky oversight, given the growing popularity of local travel and the potential for things to go wrong closer to home.
It’s easy to assume that domestic trips are straightforward and low risk. After all, there’s no need for passports, visas, or international medical coverage.
However, while domestic trips often seem simpler, they can be just as unpredictable as international travel with research from PassportCard highlighting the reality: domestic travellers face many of the same challenges as their international counterparts.
PassportCard’s research shows that 75% of Australians have experienced some form of travel disruption, whether it’s a delayed flight, a medical emergency, or lost luggage, and that Sydney (41%), Brisbane (35%), and Perth (22%) rank among the most problematic destinations globally for Australian travellers.
Common issues we’ve uncovered through our claims include theft of valuables, damage to rental vehicles, delayed luggage and flight disruptions.
Despite this, many travellers remain unprotected for domestic travel, believing these risks are minimal or manageable without insurance.
Unfortunately though, travel mishaps don’t discriminate between international and domestic trips.
Imagine landing in Cairns for a relaxing getaway, just for your luggage to be nowhere to be found. That’s a holiday killer for sure. Yet we’ve seen in recent years that one in four Australians will have their bags go missing or delayed during a flight.
Another traveller found themselves stranded in Brisbane after a delayed evening flight missed the airport’s curfew. Forced to book a last-minute hotel and pay for a new flight the next morning, they were out hundreds of dollars.
Had both of these parties opted for domestic travel insurance, these unplanned expenses would have been covered, providing financial and emotional relief during an already stressful situation.
So, why the misconceptions?
One of the biggest misconceptions is that airlines will always refund cancelled flights. In reality, most budget fares are non-refundable and even premium tickets often exclude compensation for weather-related cancellations.
Similarly, many travellers mistakenly believe that Medicare or private health insurance will cover all costs if an accident occurs.
While medical expenses may be included, associated costs – like extended accommodation, flight changes, or upgraded transport – are not.
These gaps in coverage are where domestic travel insurance proves invaluable. It fills in the blanks, ensuring travellers are not financially blindsided by unexpected events.
One of the most overlooked aspects of domestic travel is the financial investment involved.
While a weekend away might seem simple, costs can add up quickly: flights, accommodation, rental cars and activities are all at stake if plans are disrupted. Without insurance, travellers risk losing hundreds – or even thousands – of dollars to unexpected cancellations, delays, or accidents.
Take a ski trip, for example. While Medicare might cover treatment for a broken leg, additional expenses like extended accommodation, rescheduled flights, or specialist transport could leave travellers significantly out of pocket.
Domestic travel insurance ensures these unforeseen costs are managed, allowing travellers to focus on recovery rather than bills.
I personally found myself in a precarious situation on a recent weekend getaway interstate when I booked a rental car, however opted not to add the additional insurance offered at the counter.
A minor mishap – a self-inflicted scratch on the car door, resulted in a hefty repair bill and was going to cost me $5,000 excess via the rental company.
Luckily, I knew the importance of domestic travel insurance and it’s a benefit provided by PassportCard. All I had to do was share what happened, send a copy of the invoice and rental agreement, and the bill was 100% covered.
As more Australians hit the road for domestic holidays, it’s clear that travel insurance is not just an international essential – it’s a domestic one, too.
The unpredictability of travel, whether caused by wild weather, logistical hiccups, or personal emergencies, underscores the importance of protecting your plans.
Travel insurance is often seen as a “just-in-case” purchase, but when that “case” arises, the value becomes undeniable. For domestic travellers, the stakes are no less significant than for those venturing overseas.
Delays, accidents and unexpected costs can derail even the best-laid plans, making domestic travel insurance an essential part of any itinerary.
PassportCard’s instant claim processing and comprehensive coverage make it easier than ever to insure your trip, offering peace of mind for any domestic adventure.
By recognising the risks and planning ahead, travellers can ensure their holiday memories are filled with joy, not financial stress.
