Travel insurance for non-permanent residents in Australia

Are you a temporary resident of Australia planning to jet overseas for a holiday or to see family and friends back in your home country? If you are, then you may be struggling to find a travel insurance policy that will cover your journey.

In this article we’re going to look at non-resident travel insurance policies in Australia, including what they are, the impact Medicare eligibility can have and what to look for in a policy.

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Who’s a non-resident in Australia

In terms of immigration, a non-resident of Australia is someone who isn’t an Australian citizen and hasn’t been granted permanent residency. It’s important to keep in mind that a non-resident for immigration purposes is judged differently to how the Australian Tax Office determines who’s a resident and non-resident of Australia.

Difference between non-resident and regular travel insurance

Australian travel insurance companies tend to have relatively streamlined policy options so it’s not immediately evident which ones are actually available to non-residents. Instead of looking for something marketed as a special non-resident policy, you have to delve into each company’s policy disclosure statement (PDS) and see if you’re eligible as a non-resident.

What is Medicare in Australia and can you use it as a non-resident

In Australia, Medicare is the name of the universal healthcare system. It provides public healthcare to people who are enrolled in it. There is a list of citizenships and visa types that are eligible to enrol in Medicare.¹

• Australian citizens
• New Zealand citizens
• Australian permanent residents
• People applying for Australian permanent residency
• Temporary residents covered by a ministerial order
• Citizens and permanent residents of Norfolk Island, Cocos (Keeling) Islands, Christmas Island and Lord Howe Island
• Eligible people from a Reciprocal Health Care Agreement country

Taking a look at that last one, the Australian government has agreements with certain countries that mean their citizens have some access to Medicare while in Australia, and Australians have some public healthcare access in their country.² This is a list of countries Australia currently has reciprocal health care agreements with.

• Belgium
• Finland
• Italy
• Malta
• Netherlands
• New Zealand
• Norway
• Republic of Ireland
• Slovenia
• Sweden
• United Kingdom

As a non-resident you may not fit into any of these categories and if you don’t, it means you’re responsible for paying your health costs if you require medical attention.³ Depending on your visa type you may have been required to get some form of health insurance for Australia, such as Overseas Visitor Health Cover.

If you’re not eligible for Medicare it will also limit your options to purchase Australian travel insurance when you want to travel abroad or visit your country of origin.

Eligibility for non-resident travel insurance

When you’re reading through a travel insurance PDS look for the section that explains who is eligible to hold the policy. Sometimes the wording excludes non-residents by requiring a Medicare card or permanent residency in Australia for the policy to be valid. Other times non-residents are explicitly included through specifications that people with certain visas like work or study visas are eligible.

Read more: Travel Insurance for visitors to Australia

Some benefits of non-resident travel insurance

Here’s some of the general benefits of holding a travel insurance policy when going abroad as a non-resident of Australia.

• It could be difficult to obtain travel insurance from a company in your home country because your journey doesn’t start or end there
• You gain a level of medical coverage that protects you if something unexpected happens during your trip
• Travel insurance policies can cover events that international medical insurance doesn’t, such a interruptions to your journey, cancellations, theft and hire car excess

Who provides non-resident travel

To get you started, here are three Australian international travel insurance providers who offer coverage for eligible non-residents.

Allianz

The international travel insurance policy offered by Allianz extends its coverage to non-residents who meet these eligibility criteria.⁴

• Has a permanent home in Australia
• Holds an Australian visa that will continue to be valid after the trip ends and gives the unrestricted right to enter Australia (not a tourist or working holiday visa)
• Purchased the policy before leaving for the trip
• The journey starts and ends in Australia

These are some of the benefits and limits in AUD for a single person on the Allianz Comprehensive Plan.

• Overseas Emergency Assistance - $20,000,000
• Overseas Medical & Hospital Expenses - $20,000,000
• Luggage, Personal Effects & Valuables - $10,000
• Luggage & Personal Effects Delay Expenses - $1,000
• Rental Vehicle Excess - $6,000

Cover More

For their Australian domestic and international travel insurance policies, Cover More also accepts eligible non-residents.

• Currently resides in Australia with a visa to live, work or study in Australia
• Will be returning to Australia at the end of the insurance period

Cover More offers three international travel insurance plans that non-residents can access, with the most comprehensive being the Comprehensive+ Plan. It includes these benefits and limits.

• Overseas Medical Expenses - $Unlimited
• Luggage and Travel Documents - $25,000
• Baggage Delay Allowance- $1,500
• Rental Vehicle Excess - $5,000

Medibank

The wording in the Medibank travel insurance PDS on non-residents is the same as Cover More.

• Currently resides in Australia with a visa to live, work or study in Australia
• Will be returning to Australia at the end of the insurance period

They offer medical only and comprehensive international travel insurance plans. Here’s some of what's included with the International Comprehensive Plan.

• Overseas Medical & Hospital Expenses - $Unlimited
• Luggage and Personal Effects - $15,000
• Delayed Luggage Allowance- $1,100
• Rental Vehicle Excess - $6,000

What’s usually covered in non-resident travel insurance

Since non-residents can access standard travel insurance policies, it generally covers unexpected medical emergencies and events that impact your trip, such as theft, cancellations and delays.

What to look for in a non-resident travel insurance package

As a non-resident there are some specific things to look for when selecting a travel insurance policy.

• Are you required to hold a Medicare card for the coverage to be valid
• Is there a requirement for your permanent home to be Australia
• Does the policy exclude people who have a working holiday visa
• If you are travelling to your home country does that impact your ability to make a claim

Other than that, you also want to look out for some of the usual things like excess amounts that apply, benefit limits and exclusions that impact you personally.

General FAQ

In case you have more questions, here's a couple of FAQs.

Can I buy travel insurance from my home country?

It depends on what the insurers in your country offer. You would need to check if you’re eligible to buy a policy since you are travelling to that country, have been living overseas and aren’t starting or ending your journey there.

What is inbound travel insurance?

Inbound travel insurance is a type of travel insurance purchased from the country you are entering as a foreigner. It may be an option if you’re temporarily leaving Australia to go on holidays to anywhere that’s not your home country.

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Sources:

1. Services Australia - Enrolling in Medicare
2. Services Australia - When you visit Australia
3. Services Australia - Getting medical help
4. Allianz - Travel Insurance Product Disclosure Statement
5. Cover More - Travel Insurance Combined PDS and FSG
6. Medibank - Medibank Travel Insurance Combined PDS & FSG

Sources checked on: 7 March 2024