An overwhelming 82 per cent of Australian travellers will take out travel insurance in 2025 despite cost-of-living concerns as seven out of 10 Aussies (71%) plan to head overseas this year.
However, travel budgets play a major role in whether Aussies will opt for insurance coverage.
The Allianz Partners Australia Travel Index found cost-of-living is impacting Australians’ travel plans with 80 per cent of Aussies citing cost as a main barrier to travel.
The 2025 survey – a first for the company in Australia – showed that the average Aussie plans to spend between $5,000 and $10,000 per trip in the coming year.
Aussie travellers will purchase their travel insurance directly (40%) or through a travel website (16%). Around 14 per cent will use the insurance included on their credit cards.
Of those who took out travel insurance, the study found a direct correlation between travel budgets and the likelihood of buying insurance – and unsurprisingly, it’s the big spenders who are keen for coverage.
Travellers who spent more than $10,000 on their travel were almost 20 per cent more likely to purchase travel insurance than those with a budget of less than $5,000.
The main concerns driving the travel insurance uptake include illness (49%), insufficient cash (45%) and flight cancellations and delays (43%) with women more likely to worry about these issues than men.
While planning to spend the most on their travels, younger travellers are also more likely to have concerns about insufficient cash while away.
Canstar recently found 20 per cent of Aussies will travel overseas without any cover due to rising travel insurance costs.
