As the Australian summer heralds the season of family gatherings and holiday getaways, a startling trend has emerged in the travel insurance sector. Southern Cross Travel Insurance (SCTI), a leading provider in the industry, has recently disclosed that domestic travel claims in Australia have astonishingly surpassed those of international travel in terms of expenses.
Over the last two consecutive summer holiday periods, from December 1 to January 31 in both 2021-2022 and 2022-2023, SCTI reported an average claim cost of $1,328 for domestic travel. This figure notably eclipses the average international claim cost, which stood at $1,272 during the same timeframe.
This unexpected shift underscores a crucial message for Australian travellers: the significance of securing comprehensive travel insurance, even for domestic journeys. The common misconception among Aussies is the belief that domestic travel does not necessitate insurance due to the coverage provided by Medicare for medical situations. However, the recent data from SCTI highlights the unpredictable nature of travel and the financial risks involved.
Jo McCauley, CEO of SCTI, stresses the importance of being prepared for the unforeseen. “Travel plans are inherently uncertain, and our goal is to support our customers through every twist and turn they might encounter,” McCauley explains. She further emphasizes the rising costs of domestic flights and accommodations in Australia, making the absence of travel insurance a risky gamble.
SCTI’s research, titled ‘The Future of Travel 2023’, reveals some telling statistics. Nearly 58% of Australians who travelled interstate in 2022 encountered issues with their travel plans, with 36% experiencing airline-related problems such as lost luggage, flight delays, or cancellations.
In response to the growing demand for more tailored insurance options, SCTI introduced an optional cruise cover for domestic travellers in September this year. This addition was spurred by the finding that 23% of Australians plan to embark on a domestic cruise in the next 12 months, particularly popular among families with children over eight years and empty nesters. Since its introduction, the cruise cover add-on has been selected by an average of 11% of SCTI’s customers.
SCTI’s commitment to providing outstanding travel insurance solutions has been consistently recognized by the industry. Recently, the company received the Outstanding Value – Domestic Travel Insurance Award and the Outstanding Value – Seniors’ Travel Insurance Award from Canstar, marking the second consecutive year of such achievement. SCTI has also been lauded by Finder and ITIJ for its quality and customer satisfaction, further cementing its status as a leader in the field.
Moreover, SCTI stands as the top-rated travel insurer on ProductReview, boasting a commendable 4.7/5 rating as voted by over 3,000 Australians.
This surge in domestic travel claim costs not only highlights the changing dynamics of travel in Australia but also serves as a reminder of the indispensable nature of travel insurance. As Australians gear up for their summer travels, the message from SCTI is clear: whether venturing across international borders or exploring the beauty of Australia, being insured is not just an option, but a necessity for peace of mind and financial security.
Conclusion: The revelation of higher domestic travel claim costs by Southern Cross Travel Insurance not only brings to light the unforeseen expenses associated with domestic travel but also reinforces the importance of having travel insurance. This insight is crucial for Australians planning their summer travels, ensuring they are well-protected against any unexpected eventualities.
Written by: Matthew Thomas