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GuidesTravel InsuranceTravel Insurance in Australia: How to Choose the Right Cover
Travel Insurance

Travel Insurance in Australia: How to Choose the Right Cover

What travel insurance covers, how pre-existing conditions affect your options, and the five things to check in a PDS before you buy.

8 min read
Updated 2026-07-08By Lisa Park · Consumer finance research

Key takeaways

  • Medicare does not cover you overseas — travel insurance is essential abroad.
  • Medical cover limits should match destination costs (US healthcare is expensive).
  • Read pre-existing condition rules before you buy.

Travel insurance covers medical emergencies, cancellations, lost luggage, and more when you are away from home. Without it, a hospital visit overseas can cost tens of thousands of dollars.

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On this page

1Why travel insurance matters2What policies typically cover3Pre-existing conditions4How to compare travel insuranceQFAQs

Why travel insurance matters

Medicare and private health insurance generally do not cover overseas medical treatment. Smartraveller recommends comprehensive travel insurance for every international trip. A broken leg in the US can cost $50,000+ without cover.

What policies typically cover

Overseas medical and hospital, emergency evacuation, trip cancellation and interruption, lost or stolen luggage, travel delays, and personal liability. Adventure sports and cruises often need extra cover.

Cover typeSingle tripAnnual multi-trip
Medical emergencies overseas
Trip cancellation
Lost or stolen luggage
Multiple trips per year
Flexible trip datesVaries
Cost for 1–2 trips/year
Cost for 3+ trips/year

Annual policies suit frequent travellers. Single-trip cover is usually better value for one holiday. Read maximum trip length limits on annual policies.

Pre-existing conditions

Many policies exclude or limit pre-existing medical conditions unless you declare them and pay an extra premium or obtain a medical waiver. Failing to declare can void claims.

Important

Declare all pre-existing conditions honestly. Non-disclosure is a common reason claims are denied.

How to compare travel insurance

Match destination, trip length, activities, and cover limits. Compare medical limits (unlimited vs capped), excess, and cancellation cover. Credit card travel insurance may have gaps — read the terms.

General information only — not personal financial advice. Consider your own circumstances and read the Product Disclosure Statement (PDS) before purchasing any policy. Moneyhero may earn referral fees from some providers when you switch through us; this does not change how results are ordered. How we compare

Frequently asked questions

Travel insurance essentials — what's covered, pre-existing conditions, and how to compare.

  • Does Medicare cover me overseas?

    No. Medicare does not cover medical treatment outside Australia. You need travel insurance or pay out of pocket.

  • Is travel insurance mandatory?

    Not legally mandatory for most destinations, but some countries require proof of cover. Smartraveller strongly recommends it for all international travel.

  • Does my credit card include travel insurance?

    Some premium cards include travel insurance when you pay for flights with the card. Cover is often more limited than standalone policies — check limits and exclusions.

  • Are COVID-related claims covered?

    Varies by policy and date of purchase. Read current PDS for cancellation and medical cover related to pandemics.

Back to Travel Insurance guides

On this page

1Why travel insurance matters2What policies typically cover3Pre-existing conditions4How to compare travel insuranceQFAQs

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