1 in 4 young Aussies travelling overseas uninsured

04/11/2026 - Media Release

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As school leavers plan their first big trip, new data shows the number of young travellers going uninsured has fallen from 30% to 25%, but one in four still risks facing costly surprises overseas. 1Cover urges travellers of every age to stop rolling the dice on overseas travel.

One in four young Australians travelled overseas without travel insurance on their last trip, new research from 1Cover Travel Insurance shows.

Key findings

• One in four went uninsured: 25% of travellers aged 18–29 had no travel insurance for their last overseas trip.
• More young travellers are getting covered: 75% were insured for their last overseas trip, up from 70% in 2024.
• Credit card cover is declining: Just 9% of insured young travellers relied on automatic credit card cover, down from 20% in 2024.
• Baggage matters almost as much as medical cover: 46% of under-30s rated baggage cover important, compared with 47% for medical cover.
• A quarter still plan to travel uninsured: In a separate survey conducted in October, 25% of 18–24-year-olds said they wouldn't buy travel insurance for their next trip.

The survey of 1,750 Australians found that just 75% of travellers aged 18–29 had cover for their last overseas holiday, compared with 83% of Australian travellers overall. That leaves a quarter of young travellers potentially exposed to medical bills, cancellations and lost belongings while abroad.

The findings come as thousands of school leavers prepare for their end-of-year celebrations, with many set to travel overseas independently for the first time. 1Cover COO Natalie Ball is urging young travellers and their parents or carers to make travel insurance a priority before departure, warning that the financial consequences of travelling uninsured can be substantial.

“Young travellers might assume nothing will go wrong on their trip, but accidents and unexpected illnesses can happen to anyone, and medical costs overseas can be enormous,” Ms Ball says. “Parents and carers can play an important role by ensuring their school leaver has appropriate travel insurance and understands exactly what their policy covers.”

“Not all policies offer the same protection. Medical-only cover for example, may not include cancellation or lost luggage, while complimentary travel insurance provided through a credit card may come with important restrictions. Some policies only cover dependent children when they travel with the cardholder, so parents and carers should check the policy terms carefully before their child heads overseas.”

However, there are encouraging signs that young travellers are becoming more cautious, with the proportion travelling uninsured falling from 30% in 2024 to 25% in 2025.

Ball welcomed the improvement but cautioned that taking out travel insurance is only the first step.

“A first overseas trip is a major milestone, and the last thing anyone wants is for an accident or unexpected illness to turn it into a financial nightmare. We want our holidays to be remembered for all the right reasons.”

Ball says that choosing a policy that provides the right level of protection is just as important.

“It’s important to choose cover that suits your trip, rather than simply taking out any policy or opting for the cheapest one.”

That means looking beyond medical expenses. Among younger travellers, baggage cover ranks almost as highly as medical cover, with 46% rating it important, compared with 47% for medical cover.

“Phones, laptops and luggage can be expensive to replace, particularly when you’re travelling overseas. Young travellers should check that their policy covers the belongings they’re taking with them, as well as medical expenses, cancellations and other unexpected costs. Parents and carers should also make sure their school leaver understands what is and isn’t covered before they head off.”
 

The travel mishaps costing hundreds of thousands

The potential cost of getting caught out is clear in 1Cover’s claims data. More than 11,000 claims were lodged with the insurer in 2025, including a $399,328 claim for pneumonia on a cruise ship in Japan and a $327,846 claim for multiple injuries sustained in a ski accident in Canada.

Ball said travellers could underestimate just how quickly medical costs can mount overseas, particularly in destinations where treatment is expensive.

“Medical costs can escalate quickly overseas, and the potential cost of an emergency varies depending on where you’re travelling and what you’re doing. It’s worth understanding those risks before you go, rather than finding yourself facing a bill you can’t afford.”

The research also found that travel insurance priorities shift with age. Older travellers place greater importance on medical cover, while peace of mind remains the number one feeling Australians of all ages want from their insurance.

“It’s not just a message for school leavers. Whatever your age, if you couldn’t afford to pay a hospital bill overseas, travelling without insurance is a risk you shouldn’t take.”

1Cover’s tips for school leavers (and their parents)

1. Buy cover when you book: Cancellation cover can start from the day you purchase your policy, so you may be protected if something forces you to cancel before departure. Check the policy terms and exclusions.

2. Don’t assume your credit card has you covered: Complimentary credit card travel insurance can have eligibility requirements, exclusions and limits. Check whether it covers dependent children travelling independently and whether you meet the activation requirements.

3. Know what’s excluded: Claims involving excessive alcohol or drug use, or scooter accidents where the rider is unlicensed or otherwise breaches policy conditions, may not be covered. Check the specific exclusions in your policy.

4. Keep your policy details handy: Save your insurer’s emergency contact details and policy information on your phone so you can access them quickly if something goes wrong. Some hospitals may ask for insurance details or payment arrangements before treatment.

5. Check Smartraveller before you go: Read the latest travel advice for your destination and make sure you understand any relevant safety warnings, entry requirements and local risks.

 

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FOR FURTHER INFORMATION, PLEASE CONTACT:
Natali Mansberg, Content Marketing Specialist.
E: natali.mansberg@1cover.com.au | URL www.1Cover.com.au

About 1Cover Travel Insurance
1Cover Travel Insurance was founded in 2003. Today, it is one of Australia’s largest providers of online travel insurance. At 1Cover, we’re dedicated to providing all customers with exceptional cover and support. We provide cover to more than 1.5 million customers in both Australia and NZ.