How to Choose Domestic Travel Insurance
Understand What Domestic Travel Insurance Doesn’t Cover
Domestic travel insurance differs from international cover in one significant way: it does not include medical benefits for illness, as Health New Zealand (Te Whatu Ora) covers this within the country. And ACC provides no-fault cover for accidental injury anywhere in New Zealand, including injuries sustained while travelling domestically. Most domestic policies also exclude dental cover, and not all insurers include permanent disability benefits as standard. Understanding these differences upfront ensures you know exactly what you’re covered for, and what falls under Health New Zealand (Te Whatu Ora), the ACC and/or your existing healthcare arrangements instead.
Check the Minimum Distance Requirements
Some domestic travel insurance policies only activate once you travel a certain distance from home – typically somewhere between 50 and 200 kilometres, depending on the insurer. If you’re planning a short staycation close to home, it’s important to check this condition carefully, as your policy may not provide cover if your trip falls within the excluded radius.
Cruising in New Zealand Waters
A common misconception is that Health New Zealand (Te Whatu Ora) or ACC covers medical treatment received while cruising domestically. In reality, neither extends to onboard medical care, even when cruising along the New Zealand coastline. Most insurers require you to select a Pacific region policy rather than a standard domestic policy when cruising, as this ensures cover for onboard medical treatment and helicopter rescue from the ship. Some insurers allow a domestic policy with an added cruise pack instead; always confirm the right option with your insurer before booking.
Adventure Activities and Skiing
Domestic travel insurance does not automatically cover high-risk activities, including skiing and snowboarding at resorts like Queenstown, Wanaka and Mount Ruapehu. Most insurers require an additional ski or adventure activity pack for these activities to be covered, and it’s worth checking whether emergency evacuation – including helicopter rescue from a mountain – is included in that pack before you travel.
Know the Key Exclusions
Domestic travel insurance comes with a number of common exclusions worth understanding before you travel. Claims will generally not be paid for deliberately reckless behaviour, incidents involving alcohol or drugs, or high-risk activities undertaken without the appropriate cover. Travel supplier insolvency (such as a tour operator or booking agent going out of business) is not always covered either. Events already widely reported in the media at the time of purchase, such as an approaching cyclone, are also typically excluded as known events. Always read the Policy Wording to understand the full exclusions that apply to your policy.
Frequent Domestic Travellers: Consider an Annual Policy
If you take more than two domestic trips within a 12-month period, an annual multi-trip travel insurance policy may offer significantly better value than purchasing a single trip policy each time you travel. This is a particularly useful option for frequent flyers between major cities or regular regional travellers.
