Why 1 in 7 Australians travel overseas without insurance cover

More than a third said they had seen risky destinations promoted positively.

One in seven Australian travellers (14%) went overseas without travel insurance on their most recent trip, with the trend highest amongst younger people, according to a new survey by the Insurance Council of Australia (ICA) and Smartraveller.

The survey, conducted by Quantum Market Research amongst 1,001 travellers, found that nearly a quarter (23%) of Australians under 30 travelled uninsured. 

Amongst those who went without coverage, two thirds (65%) said they considered buying insurance but decided against it, with about a third (31%) believing their destination was safe enough.

The report also revealed that 45% of travellers were willing to take risks for unique experiences, including trying unfamiliar foods (49%) or visiting challenging environments (33%). 

More than a third (36%) said they had seen risky destinations promoted positively on social media.

Medical tourism was another emerging trend, with 46% of respondents saying they had, or would consider, travelling overseas for a medical procedure—most commonly dental care (30%). 

The main motivation was lower costs, cited by 69% of those considering treatment abroad.

The study also highlighted gaps in travellers’ understanding of alcohol-related insurance exclusions. 

Whilst 70% said they consumed alcohol overseas, less than half (43%) understood that coverage varies significantly between policies. 

About 39% said they either drank whilst uninsured or were unsure if they were covered.

Geopolitical uncertainty has also impacted travel habits, with more than half (56%) of respondents avoiding countries due to global tensions. 

Around 53% said they felt less comfortable travelling overseas, and 41% said they were less likely to travel abroad altogether.

ICA CEO Andrew Hall urged travellers to review their insurance policies before heading overseas. 

“Travelling anywhere, whether it’s overseas or domestically, is the highlight of many people’s years, but even when travelling to destinations perceived to be safe the unexpected can still happen,” Hall said in a media release.

“Understanding your policy and assessing what kinds of activities you plan on undertaking whilst you’re travelling is the best way to make sure you’re protected,” added Hall.