A new national survey has revealed that one in seven Australian travellers went overseas without travel insurance in the past year, with younger people and those visiting home countries among the most at risk.
The 2025 Travel Insurance Survey by the Insurance Council of Australia (ICA) and the Department of Foreign Affairs and Trade (DFAT) found that 14 per cent of travellers were uninsured on their last trip, rising to 23 per cent among those under 30 and 23 per cent among Australians born overseas. Almost a third of those uninsured said they skipped cover because they thought their destination was safe, while another quarter believed travel insurance was poor value or simply didn’t think about it.
The data points to a worrying trend among those visiting family or returning to their country of origin, with 30 per cent of such travellers uninsured. India and other South Asian destinations remain among the most popular for these “visiting friends and relatives” trips. The survey notes that travellers to Asia were also more likely to consider their destinations risky compared with those heading to Europe or North America.
ICA Chief Executive Andrew Hall said the findings show that even travellers to familiar or seemingly safe destinations are exposed if things go wrong. “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,” he said.
Medical tourism is emerging as another high-risk category. Almost half of respondents said they had, or would consider, going overseas for a medical procedure, most commonly dental care, citing lower costs as the main motivator. Among those considering treatment abroad, 80 per cent were focused on dental procedures, and those born overseas were particularly likely to view the lower cost as an incentive. Yet only one in three travellers knew that additional insurance is required for such trips.
Younger travellers’ willingness to take risks stood out. More than half of those under 30 said they were willing to take risks in pursuit of memorable experiences, from trying unfamiliar foods to visiting remote destinations. One in ten had travelled somewhere they themselves described as “very risky”. Around 36 per cent of respondents said they had seen risky destinations promoted positively on social media or in the press, a perception more common among men and younger audiences.
The report also points to complacency around alcohol and safety. Seven in ten Australians drank alcohol while overseas, but fewer than half understood that insurance policies differ in what they cover when drinking. Two in five travellers drank outside their policy limits or were unsure about their coverage, leaving them potentially uninsured in the event of an accident. Awareness of drink spiking and methanol poisoning was high overall, but uninsured and younger travellers were less informed.
Financial pressures are another factor. Two in five Australians said they might still travel without insurance if they couldn’t afford it, and those under 30 were the most likely to cut corners. A quarter of uninsured respondents cited affordability concerns, highlighting the challenge for both insurers and policymakers in communicating the cost of risk versus protection.
The current global political environment is also affecting travel choices. Over half of respondents said there are countries they now avoid, while two in five said it had made them less likely to travel overseas altogether. Yet one in ten Australians would still travel to destinations with “Do not travel” advisories, and nearly half were unaware that their policies likely wouldn’t cover them in such cases.
Smartraveller remains an important source of information. Eight in ten travellers had heard of the website, and nearly half visited it before their last trip. Of those, seven in ten read travel advice or warnings for their destinations, and four in five said the advice influenced their choice of destination or insurance policy.
Mr Hall said awareness is the first step towards protection. “Understanding your policy and assessing what kinds of activities you plan on undertaking while you’re travelling is the best way to make sure you’re protected,” he said. “We encourage any travellers to understand their exclusions and assess whether they need additional cover for any risky behaviours they’re considering. Check Product Disclosure Statements and speak directly to insurers with any questions.”
For travellers heading to India and neighbouring South Asian countries, the data suggests extra caution is warranted. These trips often involve visiting relatives, participating in festivals, or undergoing medical or dental treatments—all areas linked to higher rates of uninsured travel. As more Australians look abroad to reconnect with family or save on costs, the message from the survey is clear: a sense of familiarity does not eliminate risk.
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