Why Skipping Travel Insurance Could Cost Australians More Than They Think

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The Australian government’s official travel advisory service says taking out travel insurance before a trip is as important as having a passport.

But a new study has found that one in seven Australian travellers (14 per cent) were not covered by travel insurance on their most recent international trip, up slightly from last year’s report (13 per cent).

The 2025 Travel Insurance Survey, carried out for the Department of Foreign Affairs and Trade (DFAT) and the Insurance Council of Australia, delves into the travel safety practices of Australians. The survey, which gathered responses from 1,001 Australian travelers, seeks to shed light on the prevalence of travel insurance usage.

The findings reveal that among young travelers aged 18 to 25, a significant 10% embarked on their adventures without insurance, primarily due to financial constraints.

The report found younger people were more likely to travel without insurance — 23 per cent of those surveyed under 30 were not covered on their most recent overseas trip.

Additionally, the survey highlights that individuals from culturally and linguistically diverse backgrounds are more inclined to forgo insurance. Notably, 23% of participants who were born overseas admitted to traveling uninsured on their latest international journey.

Further insights indicate that over a quarter of respondents (27%) perceived travel insurance as not worth the investment, while nearly 24% confessed that the idea of getting insured simply didn’t occur to them.

Other reasons for skipping insurance included uncertainty about its necessity (22%), confidence in handling emergency expenses independently (22%), and the brevity of their trips (20%).

The survey found that around two-thirds (65 per cent) who travelled without insurance gave it some thought before deciding to go without.

Among those who were not covered on their last trip outside of Australia, the main reason they chose not to buy insurance was that they were travelling somewhere they believed to be safe, at 31 per cent.

A spokesperson emphasized the importance of financial preparedness while traveling, stating, “It is crucial for travelers to take responsibility for their financial matters abroad. Consular services should not be viewed as a fallback option for financial mishaps. We urge all Australians embarking on international trips to secure adequate travel insurance.”

Other reasons included not being sure if it was needed (22 per cent), being confident they could cover any emergency costs out-of-pocket (22 per cent), and going on a very short trip (20 per cent).

Do you need to buy travel insurance?

DFAT’s Smartraveller website strongly recommends travellers take out insurance before a trip and says it’s “as important as a passport”, and that “if you can’t afford travel insurance, you can’t afford to travel”.

Smartraveller says on its website that the Australian government is limited in how and when it can help Australians overseas.

“You must take responsibility for your situation when you travel. This includes your finances. Consular services are not a ‘backup plan’ if things go wrong and you need money. We expect all Australians travelling overseas to take out appropriate insurance for their trip.”

What else did the survey find?

This year’s survey found 45 per cent of travellers were willing to take risks in pursuit of unique or memorable experiences.

Forty-six per cent of travellers said they either had or would personally consider travelling overseas for a medical procedure, most commonly dental care (30 per cent). Nearly seven in 10 of those who said they would consider it nominated lower cost of treatment as a motivation.

Many respondents also said the current global political environment had influenced their feelings towards travel.

More than half (56 per cent) of travellers said current tensions meant there were countries they had planned to visit but would now avoid, and 53 per cent said they feel less comfortable travelling overseas.

Two in five (41 per cent) said the current geopolitical situation had made them less likely to take international trips at all.