Despite rising travel risks, a new iSelect survey has found that most Australians are flying blind on travel insurance, with 8 in 10 not fully understanding what is covered, and one in five admitting they have no idea what travel insurance protects them for.
The study also showed that more than half of travellers (51%) only purchase travel insurance when heading overseas, leaving many domestic trips completely unprotected.
These figures reveal a troubling mix of confusion and complacency around travel insurance, even as Australians face extreme weather events, global geopolitical tensions, flight cancellations, and ongoing disruptions that make comprehensive coverage more important than ever.
With travel becoming increasingly unpredictable, this gap in understanding leaves many people exposed to potentially costly and stressful situations.
iSelect spokesperson Hannah Norton, says: “We understand that living costs have climbed and Aussies are hunting for last-minute travel deals for greater value, but skipping on travel insurance opens people up to the potential of considerably more pain – both financially and emotionally.
“Travel insurance is there to protect you when things don’t go to plan, but it’s crucial to understand what you’re covered for because there can be a big difference between policies and providers. Travelling with only a partial safety net leaves people exposed to cancellations, delays, lost luggage, or medical emergencies, and for those who don’t know their coverage, it could mean facing unexpected costs and stress with a false sense of security.”
Australians love to think of themselves as savvy travellers, but the data shows that when it comes to insurance, many are leaving themselves exposed. As household budgets tighten, with 56% of Australians recently dipping into their savings just to cover everyday expenses, it’s clear that many view travel insurance as ‘nice to have’ rather than essential. But overlooking it could leave them far more financially exposed, should something go wrong on their trip.
By demystifying travel insurance and making it more accessible, the industry has the chance to protect travellers, strengthen relationships, and close one of the most significant knowledge gaps in the market today. Comparison websites like iSelect make it easy to compare policies side-by-side, to help consumers look for an option suited to their needs and budget.
