Southern Cross Travel Insurance (SCTI) Urges Australians to Secure Domestic Travel Insurance for Peace of Mind
As summer unfolds, Southern Cross Travel Insurance (SCTI) is advising Australians to prioritize their peace of mind and financial well-being by obtaining domestic travel insurance for their holiday trips within the country. Research from the insurer reveals that during the last two summer holiday periods, SCTI paid out an average of $1,328 per claim to Australians traveling domestically, exceeding the average international claim cost of $1,272 during the same period.
SCTI CEO Jo McCauley highlighted that despite the common belief that domestic travel might not require insurance due to coverage under Medicare for medical situations, the data from the past two summers emphasizes the value of travel insurance in safeguarding against the uncertainties of travel.
The most common claims paid out by SCTI for domestic travel were related to unexpected changes in travel plans and issues with misplaced or delayed property and baggage.
According to SCTI’s Future of Travel 2023 research, 58% of Australians who traveled interstate in 2022 reported issues with their travel or travel plans. The most common problems were airline-related, including lost luggage, flight delays, or cancellations (36%).
McCauley stressed the importance of ensuring adequate coverage for domestic holiday travels and being prepared for unforeseen circumstances. She pointed out that due to the high costs of domestic flights and accommodation in Australia, the average cost of domestic claims exceeded the average claims cost for international trips over the last two summers. Given the ongoing high costs of travel, she advised against taking the risk and traveling without insurance, whether domestically or internationally.
SCTI has also responded to the increasing interest in domestic cruises, introducing optional cruise cover as an add-on for domestic travelers in September. Approximately 23% of Australians plan to go on a domestic cruise in the next 12 months, and since the availability of domestic cruise cover, around 11% of SCTI customers have chosen this add-on in October and November.
