Travel Insurance Australia 2025: What’s New & How to Choose the Best Cover

Australians love to travel, but the landscape of travel insurance has changed dramatically in 2025. From evolving global risks to smarter policy features, choosing the right cover is more important than ever for peace of mind on the road.

Why Travel Insurance Matters More in 2025

The past few years have reshaped the way Aussies think about travel. With international borders reopened and domestic tourism booming, insurers have adapted policies to address new realities:

• Pandemic cover: COVID-19 may have faded from the headlines, but travel disruptions from new variants, local outbreaks, and changing government restrictions remain a risk. In 2025, most mainstream insurers offer some form of pandemic-related cover—but the fine print matters. Some policies now include quarantine costs, pre-trip cancellation due to illness, and even daily allowances for extended stays abroad.

• Climate and weather events: With bushfires, floods, and cyclones more frequent in Australia and the Asia-Pacific, travel insurance providers have expanded natural disaster cover. Some now offer rapid response assistance and flexible trip rescheduling options when extreme weather hits.

• Rising medical costs: Medical expenses overseas can still bankrupt the unwary. In 2025, policies have increased medical evacuation limits and built in telehealth consultations for minor issues abroad.

Whether you’re backpacking Bali or road-tripping Tassie, travel insurance is no longer a luxury—it’s essential financial protection.

What’s New in Australian Travel Insurance Policies?

The Australian travel insurance market has become more competitive and customer-focused. Here’s what’s standing out in 2025:

• Customisable cover: Many insurers now let travellers build their own policies, adding or removing modules like adventure sports, gadget protection, or high-value baggage. This means you only pay for what you really need.

• Digital-first claims: Filing a claim is easier than ever. Most insurers now offer app-based claims processes, real-time status tracking, and instant payouts for smaller claims.

• Annual multi-trip policies: With flexible work and remote jobs, more Aussies are taking multiple short trips each year. Annual multi-trip cover is now more affordable and includes expanded family options, covering kids and even pets on domestic holidays.

• Climate risk add-ons: Some policies now offer optional climate risk protection, covering delays, cancellations, or extra accommodation if your trip is affected by natural disasters or extreme weather events.

Real-world example: After flash floods disrupted flights in Queensland in early 2025, travellers with climate risk add-ons received automatic hotel vouchers and flight rescheduling support—while those without were left to fend for themselves.

How to Choose the Best Travel Insurance for Your Trip

Not all travel insurance is created equal, especially with new options in 2025. Here’s how to find the right policy for your needs:

• Check pandemic and health cover: Does the policy cover COVID-19, new variants, or other infectious diseases? Look for inclusions like quarantine costs, trip cancellation for illness, and telehealth access.

• Assess natural disaster protection: If you’re heading to regions prone to bushfires, floods, or storms, ensure your policy covers trip interruptions from these events—and check the claims process for emergencies.

• Value your valuables: Taking pricey gear? Opt for customisable gadget or high-value item cover, and check limits for laptops, cameras, or sporting equipment.

• Read the fine print: Don’t get caught out by exclusions. Adventure sports, motorcycle hire, or even riding e-scooters can be excluded unless you specifically add them on.

• Compare digital features: Fast, digital claims and 24/7 local support can make a massive difference if you’re stuck overseas.

Comparison tip: Use trusted aggregators or direct insurer websites to compare features—not just price. The cheapest policy may skip vital cover you’ll wish you had when things go sideways.

The Bottom Line: Travel Smarter, Travel Safer

In 2025, travel insurance is a must-pack item for every Aussie holiday, whether you’re jetting overseas or exploring your own backyard. With new risks and smarter features, it pays to review your cover, compare policies, and make sure you’re protected for the world as it is now—not as it was pre-pandemic.