Australia is a popular destination for international tourists, students, and backpackers. With its stunning landscapes, vibrant cities, and unique wildlife, it attracts millions of visitors every year. However, one thing many people overlook before traveling to Australia is getting the right travel insurance.
Travel insurance is just one of the many ways to stay protected. To get full peace of mind, you might also want to learn about Home, health, life, and car insurance. We’ve covered each of these in separate guides to help you choose what’s best.
In this guide, we’ll explain why travel insurance is important, what it typically covers, how COVID-19 has affected policies, and give you tips on choosing the best coverage if you’re visiting or studying in Australia in 2025.
Why Travel Insurance Is Required for International Visitors
While travel insurance is not always mandatory for short-term visitors to Australia, it is highly recommended — especially for those coming from countries without reciprocal healthcare agreements with Australia.
Key Reasons to Get Travel Insurance:
- Medical Emergencies: Australia’s healthcare system can be expensive for non-residents.
- Trip Cancellation or Interruption: Covers costs if your trip gets cut short due to illness or unexpected events.
- Lost or Stolen Luggage: Reimburses for lost baggage or delayed flights.
- Emergency Evacuation: Covers medical transport back home in serious cases.
- Visa Requirements: Some visas like student visas and working holiday visas require proof of travel insurance.
For international travelers, not having insurance could result in thousands of dollars in out-of-pocket expenses in case of an accident or illness.
What Does Travel Insurance Cover in Australia?
Most travel insurance policies designed for Australia include the following key protections:
1. Medical Coverage
- Doctor visits
- Hospital treatment
- Emergency surgeries
- Prescription medications
- Ambulance services
This is perhaps the most critical part of travel insurance since Medicare (Australia’s public health system) does not fully cover visitors.
2. Trip Cancellation or Delay
- Refunds for prepaid, non-refundable bookings
- Coverage for flight delays or cancellations due to weather, strikes, or airline insolvency
3. Lost, Stolen, or Damaged Baggage
- Compensation for lost luggage
- Reimbursement for essential items if baggage is delayed
4. Personal Liability
- Protection if you’re held responsible for accidental damage or injury to others
5. Emergency Medical Evacuation
- Air ambulance or repatriation to your home country in case of serious illness or injury
Some premium policies may also include coverage for:
- Adventure sports (e.g., scuba diving, skydiving)
- Rental car damage
- Missed connections
- Travel disruptions due to natural disasters
Top Travel Insurance Providers in Australia
Here are some of the best-rated travel insurance providers for international visitors and students traveling to Australia in 2025:
| Provider | Key Features | Customer Rating |
|---|---|---|
| World Nomads | Adventure sports coverage, easy claims process | 4.6/5 |
| Allianz Global Assistance | Strong medical coverage, 24/7 emergency support | 4.4/5 |
| Cover-More | Tailored plans for backpackers, students, and families | 4.3/5 |
| NIB Travel Insurance | Designed for short-term visitors, includes dental emergencies | 4.2/5 |
| Southern Cross Travel Health Insurance | Popular among UK and New Zealand travelers | 4.5/5 |
Each provider offers different plan types based on the length of stay, age, and activity level. Always read the policy details carefully to understand what is covered and any exclusions that may apply.
How Has COVID-19 Changed Travel Insurance Policies?
The pandemic had a major impact on the travel insurance industry, and many policies were updated to reflect new risks.
Post-COVID-19 Policy Changes Include:
- Coverage for Pandemic-Related Illnesses: Most insurers now cover medical treatment for COVID-19 as long as you’re vaccinated and follow local guidelines.
- Quarantine Expenses: Some policies reimburse costs incurred during mandatory quarantine periods.
- Trip Cancellation Due to Border Closures: Many providers offer refunds if travel restrictions prevent your trip.
- Flexible Booking Options: Insurers allow policy extensions or changes without penalty in certain situations.
However, pre-existing conditions related to past infections may still be excluded unless specified. Also, make sure to check whether the insurer covers vaccination requirements or PCR testing if needed for entry.
Tips for Students and Visitors Buying Travel Insurance
If you’re coming to Australia for study or tourism, here are some practical tips to help you choose the right travel insurance:
1. Check Visa Requirements
- Student visa holders must have Overseas Student Health Cover (OSHC) approved by the Australian government.
- Working holiday visa holders often need backpacker insurance that includes hospital and emergency care.
2. Compare Coverage and Excess
- Look at what’s included, claim limits, and excess amounts (the amount you pay before insurance kicks in).
- Avoid underinsured policies — cheap plans often provide minimal coverage.
3. Buy Before You Travel
- Most policies start on the date of purchase, so buy insurance before you leave your home country to ensure full coverage.
4. Read the Fine Print
- Know what’s not covered, such as pre-existing conditions, high-risk activities, or elective treatments.
5. Use a Trusted Comparison Site
- Websites like Compare the Market, Finder, or Canstar allow you to compare multiple insurers side-by-side.
Final Thoughts
Travel insurance is not just an extra expense — it’s a financial safeguard against unexpected events while in Australia. Whether you’re a tourist, student, or backpacker, having the right coverage ensures you’re protected from high medical bills, trip cancellations, and other travel-related risks.
With the lessons learned from the pandemic, today’s travel insurance policies are more flexible and inclusive than ever. Make sure to compare providers, read policy details, and buy early to get the most value from your insurance.