The top travel insurance claim revealed

There’s nothing quite like the feeling of counting down the days to your holiday. The flights have been booked for months, you’ve drooled over fancy villas and finally decided to treat yourself, and now you're dusting off the suitcase and passports. The holiday is so close, mentally, you’re already poolside.   

But there might be something you’re forgetting. And forgetting it could cost just as much as your flights and accommodation. 

Travel Insurance.

New NRMA Travel Insurance research indicates travel related insurance claims have risen nearly 11% in a single year¹. Going without insurance is quietly becoming one of the most expensive mistakes you can make. 

We’ve all heard the stories: stolen passports, natural disasters, even helicopter evacuations from ski fields. And if you’re honest, the first thought is usually, “Geez they’re unlucky. What are the chances of that happening to me?”

Thankfully the chances of something this dramatic occurring are quite slim (though not impossible), with our data suggesting that the most common claim received is for something far more innocuous, occurring before you even step foot on the plane. 

That’s right folks. The most common type of travel insurance claim¹ is for trip cancellations.

Cancellations occur for all sorts of reasons. A broken bone before a ski trip. A stomach bug that rips through the family. An unexpected family emergency that puts everything on hold. Suddenly, that dream holiday is snatched from your grasp. Thousands of dollars spent on flights, tours, cars and accommodation, gone in an instant. It’s a tough pill to swallow. What many travellers don’t realise, is that travel insurance can be purchased as soon as you book your trip, to help cover those pre-paid, non-refundable costs for unexpected cancellations covered by the policy (subject to any terms and exclusions of your policy). 

While our data shows the most common claims aren’t too dramatic, the fact is medical emergencies do still happen, and they’re the ones that carry the potential to hit your wallet the hardest. 

Medical and dental claims only make up around a quarter of insurance claim cases, but they account for a staggering 50% of total claim costs – that’s over $12 million in medical-related payouts in a single year¹. 

Why? Because getting sick or injured overseas (particularly in countries like the United States) can come with jaw-dropping costs. Hospital stays, emergency treatment, and medical evacuations can quickly run into the tens (or hundreds) of thousands.

Without insurance, those costs may fall entirely on you.

Our data reveals a clear trend: more Aussies need help while travelling, and the cost of going without cover is rising fast. In 2025, claims increased by 10.9% year-on-year¹. After years of restricted travel during the pandemic, Australians didn’t waste time returning to international trips once borders reopened. And where you travel can make a real difference.

Based on our data, here are the top 5 international destinations by claim value: 

1. The United States
2. Indonesia
3. Europe
4. Japan
5. New Zealand.

But it’s not just overseas trips that can result in travel insurance claims. Domestic travel within Australia continues to generate a steady number of claims for trip cancellations as well as travel delays and baggage claims. The numbers prove that travel insurance can be just as handy for a trip to Perth as it is for a trip to Peru. 

While many Australians recognise the value of travel insurance, others may still question whether it’s really worth it. Ultimately, it’s about weighing up the unpredictability of life and whether you can afford to recover lost costs if things go wrong.  

That’s why travel insurance can help cover things like:

• emergency overseas medical treatment
• trip cancellations and interruptions
• lost, stolen or delayed belongings
• unexpected travel delays.

By choosing the right level of cover, you can feel a little more assured that if something doesn’t go to plan with your trip, you mightn’t be left entirely out of pocket.

© Insurance Australia Limited ABN 11 000 016 722 AFSL 227681 trading as NRMA Insurance.

NRMA Travel Insurance issued by Zurich Australian Insurance Limited ABN 13 000 296 640, AFSL 232507, arranged and administered by Cover-More Insurance Services Pty Ltd ABN 95003 114 145, AFSL 241713 and promoted and distributed by Insurance Australia Limited ABN 11 000 016 722, AFS Licence No. 227681 trading as NRMA Insurance as well as by its authorised distributors. Limits, sub-limits, exclusions, terms and conditions (including eligibility criteria) apply. Any advice provided is general only and does not take into account your individual objectives, financial situation or needs. Consider your own needs and the Combined FSG/PDS to decide if this product is right for you. For information on the Target Market and Target Market Determinations visit Target Market Determinations (TMD). If you decide to purchase NRMA Travel Insurance from NRMA Insurance or its distributors they receive a commission, for more information please refer to NRMA Insurance’s FSG.