For a nation that prides itself on planning a holiday with military precision, flights booked months ahead, hotel reviews scrutinised like a PhD thesis, Australians are still oddly relaxed about one essential travel item: insurance.
New research from iSelect reveals that a growing number of Australians are travelling overseas without travel insurance, gambling that nothing will go wrong while abroad.
It’s a risky bet.
According to the findings, 16.1 per cent of Australians rarely or never purchase travel insurance before travelling overseas, while 22.7 per cent admit they only buy it sometimes. That means more than one in four travellers are heading abroad with little financial protection should something go wrong.
Only 61 per cent of Australians say they always purchase travel insurance before leaving the country.
For an industry that regularly reminds travellers how unpredictable international travel can be, from medical emergencies to weather chaos, those figures are enough to make insurers wince.
And the reasons? Familiar ones.
Cost and complacency.
The price of peace of mind
Among those skipping insurance, 43 per cent say it’s simply too expensive, reflecting the ongoing squeeze of the cost-of-living crunch that continues to shape travel behaviour.
Meanwhile, 23 per cent believe they don’t need cover because nothing has gone wrong on previous trips, while 22 per cent rely on reciprocal healthcare agreements between Australia and certain destinations.
But as any seasoned traveller or travel agent will attest, relying on luck overseas can be an expensive strategy.
Sophie Ryan, comparison expert at iSelect, says the research highlights a worrying mindset among travellers who underestimate how quickly things can unravel once they leave home shores.
“Often skipped over when planning a holiday, failing to adequately prepare can see medical emergencies, extreme weather events, cancellations or lost belongings quickly turn a dream holiday into a very expensive problem,” Ryan said.
The hidden risk behind the holiday
The irony, of course, is that travellers routinely spend hours comparing flights, hotels and itineraries in search of the best deal—yet insurance, arguably the financial safety net of the entire trip, is often treated like an optional extra.
Ryan notes that the pressure on household budgets is encouraging travellers to cut corners in the wrong places.
“When people are already stretching their budget to afford flights and accommodation, travel insurance can feel like an easy expense to drop,” she said.
But she cautions that the saving is often marginal compared with the potential financial fallout if something goes wrong abroad.
“The reality is that the cost of insurance is usually small compared to what travellers could face if something unexpected happens overseas, and, in most cases, it will make up only a very small fraction of your total holiday budget.
“There are plenty of more effective and less risky ways to cut costs. Maybe consider booking cheaper accommodation or looking for discounted flights and shoulder season specials before saying no to travel insurance.”
A reminder for the travel trade
For travel advisors and industry insiders, the message is hardly new, but it remains important.
Overseas medical costs can run into the tens or even hundreds of thousands of dollars, particularly in destinations without reciprocal healthcare arrangements.
In an era when global travel disruptions from extreme weather to airline delays have become part of the modern travel landscape, insurance remains one of the simplest ways to safeguard a holiday investment.
Yet, despite decades of industry warnings, many Australians still treat it as optional.
For the lucky ones, it never matters.
For the unlucky few, it can mean a holiday that costs far more than the airfare.
by Karuna Johnson – (c) 2026.
Read Time: 2 minutes.
About the Writer.
Karuna Johnson’s career only makes sense if you know she truly loves travel. Born Thai, with dual citizenship, she moves easily between worlds, equally at home sharing street food in Bangkok or sitting quietly through a Sydney boardroom meeting.
Educated in both Thailand and Australia, she speaks several languages and has applied them across destination management companies and hotels, spanning sales and administration. She’s the sort who keeps things running smoothly while others are still waking up.
Her journeys have taken her across Asia, Europe, and the United States, but it’s the smaller details that stay with her: people, customs, and the stories beneath every trip.
Worldly without being showy, Karuna brings a steady, thoughtful voice to Global Travel Media, exactly the kind of travel needs.
