Question 1

How much does travel insurance cost in Australia?

Accepted Answer

For a solo traveller on a 2-week Asia trip, comprehensive travel insurance typically costs $45–$90. A family going to the USA for 3 weeks might pay $400–$700. The biggest factors affecting price are: destination (USA/Canada is the most expensive due to medical costs), trip duration, number of travellers, and cover type. Adding pre-existing medical conditions can increase premiums by 30–50%.

Question 2

Is travel insurance worth it?

Accepted Answer

For international travel, yes — almost always. Medical costs overseas, particularly in the USA, Japan, or Switzerland, can run to hundreds of thousands of dollars. A $60 premium against a potential $200,000 hospital bill is one of the most clear-cut financial decisions you'll make. For domestic travel, it's more nuanced — medical is covered by Medicare, so the main benefit is cancellation cover and luggage.

Question 3

When should I buy travel insurance?

Accepted Answer

Buy it as soon as you book your first component of travel (usually flights). This gives you cancellation cover from day one. If you wait until you leave, you're only covered from departure — any pre-departure cancellation (due to illness, natural disaster, airline bankruptcy) won't be covered.

Question 4

Does travel insurance cover COVID-19?

Accepted Answer

Most Australian comprehensive travel insurance policies now include some COVID-19 cover — typically for medical costs if you contract COVID overseas, and in some cases for cancellation if you're required to isolate before departure. The extent varies significantly between insurers. Check the Product Disclosure Statement (PDS) carefully — many policies exclude 'change of mind' cancellations related to COVID.

Question 5

What does travel insurance not cover?

Accepted Answer

Common exclusions: events known at time of purchase (e.g. a hurricane already named), pre-existing medical conditions unless declared and accepted, self-inflicted injury, intoxication, high-risk activities without adventure cover, unattended baggage, and claims where you can't provide a police report. The PDS is the definitive source — always read it.

Question 6

Do I need travel insurance for domestic travel in Australia?

Accepted Answer

Medicare covers medical costs domestically, which removes the biggest risk. Domestic travel insurance mainly covers: trip cancellation and cancellation fees, luggage loss or theft, rental vehicle excess, and travel delay costs. For expensive domestic trips (cruise, ski holiday, overseas territory like Lord Howe Island) it can still be worthwhile.

Destination	Budget cover	Comprehensive	Note
NZ / Pacific	$25–$40	$45–$75	Low-risk, affordable medical
Asia (exc. Japan)	$28–$50	$50–$90	Good value, growing insurers
Europe / UK	$50–$95	$90–$160	Reciprocal Medicare with some countries
USA / Canada	$75–$130	$130–$230	High medical costs drive price up
Worldwide (inc. USA)	$85–$145	$145–$260	Best for multi-destination trips
Domestic Australia	$12–$25	$22–$45	Medicare covers medical; mainly cancellation

Travel Insurance Cost Calculator

What affects travel insurance cost?

Typical premiums by destination (2-week solo trip)

What to look for in a policy

Related travel tools

Sources

How this calculation works

Travel insurance and trip budget pages