From chance encounters with wild animals to injuries and illness, Southern Cross Travel Insurance (SCTI) paid out almost AUD$250,000 for domestic travel claims in 2025; however, only 41 per cent of Australians prioritise domestic travel cover compared to 76 per cent for international insurance.
Between 1 January and 15 September 2025, SCTI paid out almost half a million dollars in domestic travel insurance claims to Aussies, ranging from the weird to run-of-the-mill.
The most random domestic travel insurance payout was $4,506 claimed for rental vehicle excess after a buffalo ran into a hire car in the Northern Territory, resulting in significant damage.
SCTI’s most expensive domestic travel claim of 2025 was $30,500 for a family of four who had to cancel their Indian-Pacific rail journey, Margaret River cruise and Rottnest Island trip due to severe gastro.
The majority of domestic travel claims in 2025 were for changes to journeys or cancellations with more than $211,300 paid out to travellers overall.
This was followed by claims relating to baggage and personal items, rental car excesses, personal accidents and pet services.
It comes as SCTI data shows domestic policy purchases account for just two per cent of policy sales for domestic travel in 2025.
SCTI Chief Customer Officer Jess Strange said: “The average domestic claim made in 2025 stands at $2,376, while for our International Comprehensive cover, the average customer claim paid comes in at $1,872.”
She noted that unexpected and costly claims highlight the need for travel insurance, even when travelling domestically.
“Many Aussies believe that domestic travel insurance is an unnecessary expense, especially as most medical situations are covered under Medicare,” she said.
“However, while Medicare may cover medical costs, it will not cover the costs of cancelled flights, accommodation or prepaid tours.”
KARRYON UNPACKS: Even local holidays can go off-script — and cost thousands. With few Australians insuring domestic trips, advisors have an opportunity to educate travellers about the real value of cover for close-to-home travel.
