SCTI Highlights Increase in Domestic Travel Insurance Claims and Coverage Gaps
Addressing the Underinsurance Trend Among Australian Domestic Travellers
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Southern Cross Travel Insurance (SCTI) has reported a significant increase in domestic travel insurance claims, shedding light on the existing coverage gaps among Australian travellers.
In the first eight and a half months of 2025, SCTI settled over $240,000 in claims related to local and interstate trips.
Despite the rise in claims, many Australians continue to underestimate the importance of domestic travel insurance. SCTI's Future of Travel report indicates that while 76% of respondents consider travel insurance a high priority for international trips, only 41% hold the same view for domestic travel. This perception persists even though the average domestic claim paid in 2025 was $2,376, surpassing the average international claim of $1,872.
Jess Strange, SCTI's Chief Customer Officer, emphasized that while Medicare covers medical expenses within Australia, it does not account for costs associated with trip cancellations, lost deposits, or other non-medical expenses. She highlighted that the financial impact of unforeseen events during domestic travel can be substantial, making insurance a prudent consideration.
To address this underinsurance trend, SCTI has extended its customer service hours and enhanced its support channels, aiming to educate travellers on the benefits of comprehensive coverage for both domestic and international journeys.
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