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SCTI’s domestic travel claims more expensive than international over summer
SCTI pays an average $1,300+ on domestic travel claims over the last two summer holiday periods
20 December 2023 by Laura Sedgwick
As summer approaches and our thoughts turn to visiting family over Christmas or the annual summer family holiday, travel insurance provider Southern Cross Travel Insurance (SCTI) is urging all Aussies to prioritise their peace of mind and financial wellbeing by securing domestic travel insurance for trips around the country.
Over the last two summer holiday periods (1 Dec 2021 - 31 Jan 2022 and 1 Dec 2022 - 31 Jan 2023), SCTI has paid out an average of $1,328 per claim to Australians travelling domestically - higher than the average international claim cost during the same period ($1,272). The data highlights the importance of being adequately covered during holiday travels and always being prepared for the unexpected, as the most common claims paid were for unexpected changes to customers’ travel plans and mislaid or delayed property and baggage.
“We understand that travel plans can be subject to unexpected twists and turns, and our goal is to provide our customers with the support they need when they need it the most,” says Jo McCauley, CEO at SCTI.
"Many Aussies believe they don’t need insurance when travelling domestically as they would be covered for medical situations under Medicare. However, the data from the past two summers reinforces the value of travel insurance in safeguarding our customers against the uncertainties of travel."
“Due to the high costs of domestic flights and accommodation in Australia, we saw the average cost of domestic claims exceed the average claims cost for international trips over the last two summers. With the cost to travel not showing any signs of reducing, it’s just not worth taking the risk and travelling without insurance either domestically or internationally.”
According to SCTI’s Future of Travel 2023 research, nearly six in ten (58%) Australians who travelled interstate in 2022 reported an issue with their travel or travel plans. The issue most commonly experienced was airline-related such as lost luggage, flight delays or cancellations (36%).
In September this year, SCTI launched optional cruise cover as an ‘add-on’ for domestic travellers in response to growing demand. SCTI research showsi 23 per cent of Australians are planning to go on a domestic cruise in the next 12 months, with a very strong demand among families with children eight years and older (26%) and empty nesters (19%). In October and November following the availability of the domestic cruise cover, the add-on has been chosen by an average of approximately 11% of customers.
Last month, SCTI received an Outstanding Value – Domestic Travel Insurance Award and an Outstanding Value – Seniors’ Travel Insurance Award by Canstar. This is the second consecutive year SCTI has won both categories. SCTI has consistently been recognised as a leader in the travel insurance industry, regularly receiving awards for quality and customer satisfaction from institutions such as Finder and ITIJ. It also remains the #1 rated travel insurer on the customer review website ProductReview with a score of 4.7/5, as voted by over 3,000 Australians.