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If you're an Australian travelling overseas, travel insurance is just as essential as a passport. If you can afford a holiday, you can afford travel insurance.
Holidays don't always go as planned
Travel insurance can give you financial and practical support when things go wrong. Medical expenses are the number one risk you want to cover. Other things that can go wrong include trip cancellations, delays, lost luggage or even natural disasters and pandemics. If you end up out of pocket because of these things, insurance could make up for your losses. But most importantly, it's about being a smart traveller in case the unexpected happens.
The Australian Government won't pay your medical bills
If you end up injured or sick while overseas, the Australian Government can only help so much. The Consular Services Charter describes what the government may do and also what it can't do to help Australians overseas.
"74% of travellers expected assistance in circumstances when the government may not be able to provide it, such as coordinate and pay for medical evacuation or treatment"
ICA & DFAT Travel Insurance Survey 2025
If you end up injured or sick while overseas, the Australian Government can only help so much.
With the correct travel insurance, you'll be financially covered when things go wrong. Without insurance or the right insurance? You might need to pay for unplanned hospital bills and the cost of flying home. If you're really unlucky, bills could cost you or your family hundreds of thousands of dollars. See the case studies in this guide* for things to check for when buying travel insurance.
*To protect privacy we have changed names and some details of the case studies throughout this guide.
What is the main reason Australians are travelling?
- Holidays: 61%
- Visiting friends or relatives: 26%
- Business / Employment: 7%
- Other: 6%
Whatever your reason for jetting off, travel insurance is a crucial part of your trip.
NOTE: Data from Australian Bureau of Statistics (March 2026), Overseas Arrivals and Departures, Australia.
Reciprocal health care
Australia has reciprocal healthcare agreements with several countries: Belgium, Finland, Italy, Malta, the Netherlands, New Zealand, Norway, the Republic of Ireland, Slovenia, Sweden and the United Kingdom. If you have Medicare, you can get subsidised treatment for essential services only in these countries. This often makes people wonder if they still need travel insurance?
The answer is always yes, for the following reasons.
- You're usually only covered for urgent care that can't wait until you get home.
- If you're very ill, travel insurance can pay for a medical escort to bring you home to Australia – reciprocal healthcare agreements don't cover this.
- You still might have to pay fees for treatment and medication. For example, in New Zealand reciprocal health care doesn't cover you for free or subsidised care by a general practitioner or ambulance.
- To get to most of these destinations, you often need to transit through other countries where Australia has no reciprocal healthcare agreement. And you could get injured or sick on the way.
- Travel insurance also covers you for other unexpected events, including flight cancellations, delays, stolen items and more.
Remember to take your Medicare card overseas with you. You'll need it, along with your passport, to prove you're eligible for reciprocal health care. For more information, visit servicesaustralia.gov.au.
Tip! Did you know that some overseas hospitals won't admit or treat you without travel insurance and that you'll have to pay up front?
Nhung was holidaying in Türkiye when she experienced acute appendicitis and needed emergency surgery. The hospital wouldn't admit her without payment. Nhung contacted her travel insurer and after a quick assessment of her condition, she was provided with funds so she was not left out-of-pocket and could focus on recovering.
I'm travelling in Australia: do I need domestic travel insurance?
For Australians, most of us already have medical cover at home, such as Medicare, private health insurance or both. We know how things work here and we're closer to our family, friends and support systems if we need them. But there are still a few key reasons to consider domestic travel insurance.
- Medical evacuation: If your health insurance policy doesn't cover air or ground ambulance, domestic travel insurance might be worth thinking about for emergency evacuation. For example, you go on a hike and get hurt.
- Trip cancellation: If you've spent a lot on your holiday, then it's not too much extra to buy travel insurance in case things go wrong.
- Baggage cover: If you're travelling with valuables, think about whether you want them covered for theft, loss or damage.
- Car hire insurance excess: You can save money using travel insurance to cover your collision damage excess, instead of paying the car hire company's extra charge.