What travel insurance covers
A travel policy is a bundle of separate benefits, each with its own limit, its own excess rules and its own exclusions. Two policies with the same name and a similar price can differ a lot once you look at the benefit table. These are the parts of a comprehensive international policy and how they usually work.
| Cover | What it pays for | How the limit is usually set | What to check in the PDS |
|---|---|---|---|
| Overseas medical and hospital | Emergency treatment, hospital stays, surgery and prescribed medicine while you are away | Often unlimited on comprehensive policies, sometimes with a time cap on ongoing treatment; lower on basic policies | Exclusions for pre-existing conditions, alcohol and drugs, and dental limits |
| Emergency evacuation and repatriation | Getting you to a suitable hospital, or home to Australia, when medically necessary | Usually part of the medical benefit and arranged through the insurer's emergency assistance team | Whether the insurer must approve the evacuation first |
| Cancellation and amendment | Prepaid, non-refundable costs lost when a covered event stops or changes your trip | A fixed maximum, or an amount you choose when you buy | The list of covered reasons; 'change of mind' is not one |
| Luggage and personal items | Lost, stolen or damaged bags and belongings | An overall limit plus a lower limit per item, with separate caps for phones, laptops and cameras | Per-item limits and exclusions for unattended items |
| Travel delay and missed connections | Extra meals and accommodation when your transport is delayed | A set amount for each block of delay, after a minimum waiting period | The minimum delay before it pays, and whether the cause is covered |
| Rental vehicle excess | The excess you owe the rental company if the hire car is damaged or stolen | A fixed maximum; included on many comprehensive policies, optional on others | Vehicle types and weights covered, unsealed roads, and admin or loss-of-use fees. See car hire excess insurance |
| Personal liability | Your legal liability if you accidentally injure someone or damage their property | A large fixed limit, commonly expressed in millions of dollars | Exclusions for motor vehicles and anything you do under the influence |
| Additional expenses | Extra accommodation and transport when a covered event disrupts your trip | A fixed maximum, often combined with other benefits | What counts as a covered disruption |
Of all of these, overseas medical cover is the one to protect. There is no public safety net once you leave Australia, and insurers' own published claims show the scale: theexamples belowrun from $362,034 to more than $3 million. Luggage and delay cover are useful but replaceable; an uninsured medical evacuation is not something most households could absorb.
Comprehensive, basic or medical-only
Most insurers sell international cover in levels. Comprehensive includes everything above. Basic or essentials policies keep medical cover but cut or remove cancellation and luggage. Medical-only policies cover medical treatment and evacuation and nothing else, which suits travellers whose bookings are refundable and whose belongings are cheap to replace.
| Level | Overseas medical | Cancellation | Luggage | Who it suits |
|---|---|---|---|---|
| Comprehensive | Yes, usually the highest limits | Yes | Yes, with per-item limits | Most international trips, especially with prepaid bookings |
| Basic / essentials | Yes, with lower limits | Limited or none | Limited or none | Short trips with little prepaid and not much to lose |
| Medical only | Yes | No | No | Travellers who only want the catastrophic medical risk covered |
| Domestic | No; Medicare and private health cover treatment in Australia | Yes | Yes | Trips within Australia, particularly with a hire car or prepaid bookings |
The cheapest level is not automatically the cheap option. If you have paid thousands for non-refundable flights, tours or a cruise, cancellation cover is doing real work, and dropping it to save on the premium can cost far more than it saves.
Single trip or annual multi-trip
A single-trip policy covers one journey, from the day you buy it until you get home. An annual multi-trip policy covers every trip you take in 12 months, as long as each one fits under the maximum trip length you chose and stays inside the policy's region. If you travel overseas several times a year, price both on the same excess and cancellation amount and compare the totals.
Annual policies suit frequent and business travellers. They do not suit one long trip, which will usually break the maximum trip length. Read more in our guide toannual multi-trip travel insurance.
Medicare does not cover you overseas
Services Australia puts it plainly: Medicare doesn't cover you while you're overseas. Australian private health insurance is built around treatment in Australia, so don't assume your fund will pay for care abroad either. If you are injured or fall ill overseas, you pay the local cost of treatment, often up front, and the Consular Services Charter is explicit that the Australian Government can't pay for medical services or medication for you. Smartraveller's advice is blunt: if you can't afford travel insurance, you shouldn't travel.
What an overseas emergency can cost
These are real claims that Australian travel insurers have published, each ending in an air ambulance home. They are the reason the medical limit matters more than any other number in a policy.
| Where | What happened | Claim paid | Published by |
|---|---|---|---|
| USA | An Australian fell ill, spent several weeks in hospital including intensive care, and came home by air ambulance | More than $3 million (2024) | nib, 25 March 2025 |
| Albania | A 76-year-old had a stroke, spent 10 weeks in hospital and was flown home by air ambulance, which alone cost more than $500,000 | $672,630 (2024) | Southern Cross Travel Insurance |
| Thailand | An 80-year-old spent almost two months in hospital with a collapsed lung and complications, then flew home by air ambulance | $362,034 (2024) | Southern Cross Travel Insurance |
The partial exception is the Reciprocal Health Care Agreements (RHCAs) Australia holds with 11 countries. They give Australian visitors publicly funded care that is medically necessary, meaning emergency care or care for an illness or injury that can't wait until you get home. They are useful, but each one has gaps, co-payments and time limits.
| Country | What the agreement can cover | Time limit | Notable gaps |
|---|---|---|---|
| United Kingdom | NHS GP and nurse care, public-ward hospital and outpatient care, ambulance to an NHS facility | Within 6 months of arrival | Private care, non-subsidised medicine, all dental |
| Ireland | Care as a public patient in a public hospital, maternity care, part of prescription costs | Within 12 months of arrival | GP visits, private care, anything arranged before you arrived |
| New Zealand | Public hospital care, maternity care and pharmaceuticals | Within 2 years of arrival | GP visits, ambulance travel, flights home |
| Italy | Public hospital, outpatient, GP and specialist care, urgent dental | Within 6 months of arrival | You may pay for medicines and tests |
| Malta | Government hospital and outpatient care, emergency ambulance, immediate dental | Within 6 months of arrival | Non-urgent dental work |
| Netherlands | Hospital, GP and specialist care (needs an A111 certificate) | Within 12 months of arrival | Repatriation, adult non-specialist dental |
| Belgium | Essential care, with a co-payment of 25% to 40% on many services | Not stated | Half of ambulance costs |
| Sweden, Finland | Medically necessary care for a fee per service | Not stated | Daily hospital fees |
| Norway | Medically necessary care, including ambulance | Within 12 months | Medicines up to an annual amount |
| Slovenia | Part of the cost of care and some medicines | Not stated | Providers without a public contract |
None of the agreements pays to fly you home, covers private hospitals, replaces stolen belongings or refunds a cancelled trip. Smartraveller notes that a medical evacuation is not covered and often costs thousands of dollars, and that the agreements are no substitute for travel insurance; Services Australia's country pages point to travel insurance for the extra costs. OurNew ZealandandEuropeguides go through the agreements country by country, andtravel insurance for seniorscovers what they mean for older travellers.
What travel insurance usually excludes
Exclusions vary between insurers, but a set of them appears in almost every Australian policy. These are the ones that most often turn a claim down.
- Pre-existing medical conditions you did not declare, or that the insurer declined.
- Anything that happens while you are affected by alcohol or drugs. Smartraveller warns that even a low blood alcohol level can see a claim denied.
- Breaking the law, such as riding a moped without a helmet, and riding a motorbike or scooter without the right licence or without the policy's motorcycle option. The licence rules differ by country: see scooter cover in Bali, Thailand and Vietnam.
- Events that were already known when you bought the policy, such as a named cyclone, an active volcanic ash cloud or an announced strike.
- Travel to a country or region Smartraveller rates 'Do not travel'. Moneysmart says your policy usually won't cover you there.
- Unattended luggage, and items above the per-item limit.
- Change of mind, or cancelling because you can no longer afford the trip.
- Snow sports, and some adventure activities, unless you added the relevant option. See ski travel insurance.
- Pregnancy-related costs beyond the policy's stated limits.
- War, conflict and terrorism, pandemics, and losses from the financial failure of an airline, hotel, travel operator or agent, which Moneysmart lists among common exclusions.
Pre-existing conditions deserve their own read. The definition is set by each policy and is usually wider than people expect. See our guide totravel insurance for pre-existing medical conditions.
Smartraveller advice levels and your cover
Smartraveller, the Australian Government's travel advisory service, rates every destination on four levels, and sometimes sets a higher level for particular regions within a country. The level is one of the first things an insurer looks at.
| Level | Smartraveller wording | What it commonly means for travel insurance |
|---|---|---|
| 1 | Exercise normal safety precautions | No effect on cover |
| 2 | Exercise a high degree of caution | Usually no effect on cover; read the destination's specific risks |
| 3 | Reconsider your need to travel | Some insurers restrict or exclude cover; check before booking |
| 4 | Do not travel | Commonly excluded for travel undertaken against the advice |
The other rule to know is the known-event exclusion. Once an event is public knowledge, such as a cyclone with a name, a volcano already disrupting flights or an announced strike, policies bought after that point generally will not cover losses it causes. Buying early is what protects you.
Is credit card travel insurance enough?
Check before you count on it, because the cover is changing. On 1 October 2026 Smartraveller warned that several major Australian banks are reducing or removing the complimentary travel insurance on their credit cards, for domestic and international trips, and that this applies to existing cards as well as new ones. Where cover remains, you may have lost cover for medical expenses, delays and cancellations, luggage or rental vehicle excess, and your trip may now be longer than the card's maximum period. If you're choosing a card to take overseas, our guide totravel credit cardsexplains foreign transaction fees.
Card cover can still be real cover, but it is not the same product as a policy you choose, and it has its own conditions:
- It usually has to be activated, typically by paying a set amount of your travel costs with the card. Smartraveller's advice: don't assume it's activated.
- It may cover only the cardholder, not a spouse or children, and generally only the trip paid for on the card.
- It often covers fewer situations, with lower limits, than a standalone policy.
- Pre-existing condition cover can be narrower, with fewer options to have a condition assessed.
- The cost is not free in practice: Moneysmart notes it is often built into the card's fees or interest rate.
When ASIC reviewed complimentary credit card travel insurance in 2015, it found more than half of the policies required the full airfare to be paid on the card, and card issuers agreed to explain more clearly when cover is activated. Read the card's current policy document, including any effective dates, before deciding. If it falls short on medical cover, pre-existing conditions, cancellation orrental car excess, a standalone policy is the fix.
How to compare travel insurance
The Product Disclosure Statement (PDS) is the contract. The Target Market Determination (TMD) says who the product is designed for. Both are on every insurer's website, and seven steps get you through them.
- 1Start from the tripDestination (including stopovers), dates, travellers and their ages, activities, and the total you have prepaid that you could not get back.
- 2Match the levelComprehensive for most overseas trips; medical-only if you only need the catastrophic cover; domestic for trips at home.
- 3Declare everythingAnswer the medical questions for every traveller and keep the written outcome with your policy.
- 4Read the benefit tableCompare overseas medical, cancellation, luggage (and the per-item limit), rental vehicle excess and the excess you pay per claim.
- 5Read the exclusionsAlcohol, motorbikes, adventure activities, known events and advice levels. These decide more claims than the headline limits.
- 6Check the TMDThe Target Market Determination says who the product is designed for, including age and trip-length limits.
- 7Compare the same thingQuote each insurer on the same excess and cancellation amount, then compare price.
Who issues Australia's travel insurance brands
Many travel insurance brands are sold by one company and insured by another. The insurer named in the PDS is the one that underwrites the policy, and several well-known brands share the same insurer. This is how the market is structured, read from each brand's current PDS. It isn't a list of who we compare.
| Brand | Insurer or underwriter named in the PDS | Policies sold | PDS date |
|---|---|---|---|
| Cover-More | Zurich Australian Insurance; Cover-More arranges the policy for the insurer | International Basic, Comprehensive and Comprehensive+; domestic; annual on Comprehensive levels | 15 October 2025 |
| Freely | Zurich Australian Insurance; Cover-More acts for the insurer | Explorer Pro, Explorer and Essentials, overseas or domestic | 25 May 2026 |
| Qantas | Zurich Australian Insurance | International Comprehensive, Annual Multi Trip, Australian Comprehensive | 1 July 2026 |
| Bupa | Zurich Australian Insurance; Travel Insurance Partners acts for the insurer | International Plus, International Essentials, Domestic; single trip or annual | 11 March 2026 |
| Medibank | Zurich Australian Insurance; Travel Insurance Partners acts for the insurer | International Comprehensive, Medical Only, Domestic | 22 April 2026 |
| Budget Direct | Zurich Australian Insurance; Travel Insurance Partners acts for the insurer | Comprehensive, Essential, Basic, Domestic | 25 March 2026 |
| Australia Post | Zurich Australian Insurance; Travel Insurance Partners acts for the insurer | International Comprehensive, International Basic, Domestic; single trip or annual | 22 October 2025 |
| Allianz | Allianz Australia Insurance; issued by AWP Australia (Allianz Global Assistance) as its agent | Comprehensive, Basic, Domestic, Multi-Trip, Non-Medical | 19 December 2025 |
| nib | Pacific International Insurance; nib Travel Services administers the policy | Comprehensive, Essentials, Annual Multi Trip | 1 September 2026 |
| World Nomads | Pacific International Insurance; nib Travel Services acts as its agent | Standard and Explorer, overseas only | 30 September 2026 |
| Southern Cross Travel Insurance | Southern Cross Benefits | International Comprehensive single trip or annual, Domestic | 12 July 2025 |
| 1Cover | HDI Global Specialty SE – Australia; Coffre-Fort is the underwriting agent | Comprehensive, Medical Only, Domestic, Already Overseas, Frequent Traveller | 4 March 2026 |
| Zoom | HDI Global Specialty SE – Australia; Coffre-Fort is the underwriting agent | Medical Only, Standard, Comprehensive, Domestic, Frequent Traveller | 4 March 2026 |
| Tick | Europ Assistance Australia | Basic, Budget, Standard, Top; domestic and cruise | 1 April 2026 |
| InsureandGo | Europ Assistance Australia | Bare Essentials, Silver, Gold; single trip, annual and cruise | 29 July 2026 |
| Fast Cover | Certain underwriters at Lloyd's; Fast Cover issues under a binding authority | Comprehensive, Standard Saver, Basics, Snow Sports Plus, Domestic Plus, Frequent Traveller Saver | 16 July 2026 |
| Travel Insurance Saver | Chase Underwriting Solutions, under a Lloyd's binding authority | Comprehensive, Essentials, Medical Only; single trip, annual or domestic | 31 December 2025 |
Sharing an insurer doesn't make two policies the same. Zurich stands behind seven of the brands above, and their benefit limits, age rules and pre-existing condition lists still differ, so compare the benefit tables rather than the brand.
What comparison sites (including this one) don't show you
Comparison sites, this one included, don't show you the whole market. Moneysmart's guide to using comparison websites says most don't cover everything available: they may only cover certain products and providers, for example those that pay them commissions. They are businesses that can earn money from sponsored links, from commission when you buy, and from collecting and selling your details.
The ACCC found the same pattern in its 2014 review of comparator websites. Sites are usually paid a fee per lead or a commission per sale, and the ACCC was concerned that some conveyed they compared all providers when the comparison was limited, or largely limited, to providers they had commercial arrangements with. Our ownhow we're paidpage explains our side.
There is no public list of insurers that stay off comparison sites, and it changes as commercial arrangements change. To cover the gap, quote one or two insurers directly as well as through any comparison site, use the table above to spot brands that share an insurer, and read each site's own statement of which providers it covers. Moneysmart's list of official government comparison tools covers health insurance, super and energy; travel insurance isn't on it.
Best travel insurance in Australia: the tests that matter
The best travel insurance is the cheapest policy that passes every test your trip sets. These are our criteria. We read selected insurers' PDSs, not the whole market, and we don't rank insurers or hold ratings data, because the policy that suits a 25-year-old in Bali can be the wrong one for a 75-year-old on a cruise.
- 1Sold to youThe product's age limit and maximum trip length fit your trip. Many budget and annual products stop between 69 and 79; see seniors travel insurance for maximum ages by insurer.
- 2Your health accepted in writingEvery pre-existing condition declared and assessed, with what was accepted listed on your certificate of insurance.
- 3Medical cover for where you're goingAn overseas medical limit that suits your destination's costs, with evacuation and a 24-hour emergency assistance line.
- 4Cancellation that matches your bookingsA limit that covers everything you've prepaid and couldn't get back.
- 5The options your trip needsSnow sports, cruise, motorcycle riding or adventure activities, if you'll do them.
- 6Exclusions you can live withAlcohol, known events, unattended luggage and Smartraveller advice levels decide more claims than headline limits.
Once two or more policies pass, compare them on price at the same excess and cancellation amount. Brands that share an insurer, shown in the table above, can still differ on every one of these tests.
Cheap travel insurance: how to pay less without cutting cover
Cheap travel insurance should mean paying less for the same cover. Start with what moves the price, then use the levers that lower the premium without removing what protects you.
| Factor | Which way it moves the premium | What you control |
|---|---|---|
| Age of each traveller | Premiums generally rise with age, and some products stop selling at set ages | Compare insurers on the same cover; age limits differ by product. See seniors travel insurance for over 60s |
| Region | A region that includes the Americas generally costs more than one that leaves them out | Set the region to every country you will visit, including stopovers, and no wider |
| Trip length | Longer trips cost more; on annual policies, a longer maximum trip length costs more | Choose the shortest maximum trip that fits your longest trip |
| Excess | A higher excess lowers the premium | Choose the highest excess you could comfortably pay at claim time |
| Cancellation amount | A higher cancellation limit raises the premium | Set it to the prepaid costs you could not get back |
| Pre-existing conditions | An accepted condition can add an extra premium, and the amount differs between insurers | Run the medical assessment with more than one insurer. See pre-existing conditions |
| Snow, cruise and other options | Each option adds to the premium | Add only the options your trip needs, and never skip one it does need |
| Level of cover | Basic and medical-only levels cost less than comprehensive | Drop cancellation and luggage cover only if you have little prepaid and little to lose |
- ✓Choose a higher excess if you could pay it comfortably at claim time. It lowers the premium on most policies.
- ✓Set the cancellation amount to what you have actually prepaid and cannot recover, not the default.
- ✓Pick the right region. Including the Americas when you are not going there adds cost; leaving them off when you are removes the cover that matters most.
- ✓If you travel several times a year, price an annual multi-trip policy against single-trip cover. The calculator on that page adds up your own quotes.
- ✓Travelling as a family? Check whether dependent children are included at no extra premium (Qantas's policy charges nothing for under-12s travelling with an adult) and how each insurer defines a dependant. See family travel insurance.
- ✓Skip optional add-ons you won't use, such as a snow pack when you aren't skiing.
- ✓Do not cut the medical cover to save money. It is the benefit that protects you from a bill you could never pay.
When to buy, and what happens if you claim
Buy the policy when you pay for the first thing you could not get back. Cancellation cover only applies to events that happen after the policy starts, and anything already known when you buy is excluded. Most policies also have a cooling-off period, set out in the PDS, in which you can cancel for a refund if you have not travelled or claimed.
If something goes wrong overseas, call the insurer's emergency assistance number before you agree to major treatment or an evacuation where you can; many policies require approval first. Keep receipts, medical reports, police reports for theft, and written confirmation from airlines about delays and cancellations.
If a claim is refused, ask for the reasons in writing and use the insurer's internal complaints process. The General Insurance Code of Practice, which applies to travel insurance sold by insurers that subscribe to it, sets standards for claims handling; check whether your insurer is a subscriber. If you are still unhappy, the Australian Financial Complaints Authority (AFCA) handles complaints for free. Travel insurance is one of the general insurance products AFCA hears most about: it received 2,036 travel insurance complaints in 2024–25.
Travel insurance by destination and trip
What you need depends on where you are going and what you are doing when you get there. Each of these guides covers the local rules and risks that change the cover you should buy.
By destination
By trip or traveller
- Annual Multi-TripAnnual multi-trip travel insurance
- Pre-Existing ConditionsTravel insurance for pre-existing medical conditions
- SeniorsTravel insurance for seniors: over 60s, 70s and 80s
- FamilyFamily travel insurance
- Ski & SnowSki and snowboard travel insurance
- DomesticDomestic travel insurance in Australia
- CruiseCruise travel insurance
- Car Hire ExcessRental car insurance: car hire excess cover explained
Travel insurance FAQs
What does travel insurance cover?
A comprehensive international policy typically covers overseas medical and hospital costs, emergency evacuation and repatriation, cancellation of prepaid bookings for covered reasons, lost or damaged luggage, travel delays, rental vehicle excess and personal liability. Each benefit has its own limit and exclusions, set out in the Product Disclosure Statement.
What will travel insurance not cover?
Travel insurance won't cover undeclared pre-existing conditions, anything that happens while you're affected by alcohol or drugs, riding a motorbike without the right licence or helmet, events that were already known when you bought the policy, travel to places Smartraveller rates 'Do not travel', unattended luggage or change of mind. Each policy's full list is in its PDS.
What is the best travel insurance for Australians?
The best travel insurance for an Australian traveller is the cheapest policy that is sold at your age for your trip, accepts your health in writing, has medical cover suited to your destination, a cancellation limit that matches what you've prepaid, and the options your trip needs, such as cruise or snow cover. We read selected PDSs and don't rank insurers, so compare the policies that pass on price.
What insurance do I need for travelling?
For an overseas trip, a travel policy with overseas medical and evacuation cover, because Medicare doesn't cover you overseas; Smartraveller's advice is that if you can't afford travel insurance, you shouldn't travel. Add cancellation cover for what you've prepaid and the options your trip needs. For trips within Australia, a domestic policy is optional and doesn't cover medical costs.
Who underwrites most travel insurance in Australia?
As at 2 October 2026, Zurich Australian Insurance underwrites 7 of the 17 brands in our table: Cover-More, Freely, Qantas, Bupa, Medibank, Budget Direct and Australia Post. Pacific International Insurance stands behind nib and World Nomads, HDI Global Specialty behind 1Cover and Zoom, and Europ Assistance Australia behind Tick and InsureandGo. Sharing an insurer doesn't make two policies the same.
Which travel insurance company has the most complaints?
The Australian Financial Complaints Authority publishes complaint numbers by firm in its Datacube, but they are raw counts, not rates, so insurers with the most customers tend to have the most complaints, and one legal entity can stand behind several brands. AFCA received 2,036 travel insurance complaints in 2024–25. Treat complaint numbers as one signal, not a ranking.
Who is the most trusted travel insurance company?
There's no official trust ranking of travel insurers, and we don't publish one. What you can check is whether a policy is sold at your age, accepts your conditions in writing and has a claims process you understand, plus AFCA's complaint numbers by firm as one signal. If a claim is refused, the insurer's complaints process comes first, then AFCA, which is free.
Do I need travel insurance if Medicare covers me?
Medicare does not cover medical treatment overseas. Australia has Reciprocal Health Care Agreements with 11 countries that give limited access to public treatment, but they do not cover private care, medical evacuation or getting you home. Smartraveller's advice is that if you can't afford travel insurance, you shouldn't travel.
Who has the cheapest travel insurance?
No insurer is cheapest for everyone, because price depends on your age, destination, trip length, excess and medical history. The way to find cheaper cover is to quote several insurers for the same trip on the same excess and cancellation amount, and to check the cheaper policy still covers what you need.
How much does travel insurance cost?
It depends mainly on destination, trip length, the ages of the travellers, pre-existing conditions, the level of cover and the excess you choose. Trips to the Americas and older travellers cost the most. We do not publish prices because they change constantly and vary so much between travellers.
What is the best website to compare travel insurance?
No single site covers the whole market. Moneysmart notes that most comparison websites only cover certain providers, for example those that pay them commissions. Use a comparison site to build a shortlist, quote one or two insurers directly as well, then compare the PDS benefit tables on the same excess and cancellation amount.
Is credit card travel insurance enough?
Check before relying on it. Smartraveller warned on 1 October 2026 that several major Australian banks are reducing or removing the travel insurance on their credit cards, including on existing cards. Where cover remains, it usually has to be activated, typically by paying a set amount of your travel costs with the card, it may cover only the cardholder and the trip paid on the card, and it often has lower limits and narrower pre-existing condition cover than a standalone policy. Read the card's current PDS.
Does travel insurance cover rental car excess?
Many comprehensive policies include rental vehicle excess cover, which repays the excess you owe the hire company after damage or theft, up to a limit. Basic levels often leave it out, and roof and underbody damage, unsealed roads and the hire company's admin fees are common exclusions. See car hire excess insurance.
When should I buy travel insurance?
As soon as you have paid for anything you could not get back. Cancellation cover only helps if the policy is in force before the event that stops you travelling, and an event that is already known when you buy is usually excluded.
Do I need travel insurance for travel within Australia?
It is optional. Domestic policies do not cover medical treatment, which Medicare and private health insurance handle at home, but they can cover cancellation, luggage, travel delay and rental car excess. A cruise is different: Smartraveller says you still need travel insurance for your health even if the cruise isn't leaving Australian waters.
General information only
This page explains how travel insurance generally works in Australia. It is not advice about any particular policy. Benefits, limits and exclusions differ between insurers, so read the Product Disclosure Statement and Target Market Determination before you buy.
