RACV gives insurance tips as 1.3 million Aussies set sail on cruise holidays

RACV is reminding the growing number of cruise travellers that standard travel insurance may not provide adequate protection for cruise holidays. According to the Australian Cruise Association, 1.32 million Australians took cruise holidays in 2024 – a 5.9 per cent increase on the previous year – with some unaware that medical treatment on cruise ships may not be covered by Medicare, even in Australian waters.

The surge in cruise popularity, which saw Australia maintain its position as the world's fourth-largest cruise market, has prompted RACV's latest cruise travel insurance guidance revealing critical coverage gaps that could leave holidaymakers facing significant unexpected costs, particularly for medical emergencies at sea.

“October is often referred to as ‘Cruise Month’ in travel circles, with many travellers booking in cruise deals for the following year but some travellers don’t give travel insurance a second thought,” said RACV Executive General Manager Leisure Craig Peachey.

"Many Australians assume they're covered by Medicare on domestic cruises, but medical providers on cruise ships – even those in Australian waters – are often not registered with Medicare.

"This means travellers could face substantial out-of-pocket medical expenses without appropriate cruise-specific travel insurance."

Key findings from RACV's cruise insurance analysis:

• Ocean cruises of two nights or more require international travel insurance policies, regardless of destination.
• Medical evacuation from cruise ships can cost tens of thousands of dollars.
• River cruises are automatically covered under standard travel policies.
• Australian cruise passengers need international policy options for onboard medical coverage and are encouraged to check cruise specific coverage for items like missed shore excursions and missed port to cabin confinement.

The guidance comes as the cruise industry experiences unprecedented growth, with 781,000 Australians choosing domestic cruises in 2024 (up 10.2 per cent) and a growing number opting for international destinations. Significantly, 245,000 Australians (18.5 per cent) chose fly-cruise itineraries to long-haul destinations – a 29 per cent increase that highlights the expanding scope of cruise travel.

RACV Travel Insurance offers cruise coverage through multiple policy tiers, from basic emergency cover to comprehensive protection including cancellation fees and lost deposits. RACV members receive up to 15 per cent discount on all travel insurance policies.

"With over 1.3 million Australians now cruising annually and Australia ranking as the world's fourth-largest cruise market, it's crucial that travellers understand their insurance needs," Mr Peachey said.

"From medical emergencies at sea to trip cancellations due to unforeseen circumstances, the right insurance can mean the difference between a minor inconvenience and a major financial disaster."

RACV recommends cruise travellers:

• Purchase travel insurance as soon as any cruise deposit is paid.
• Select cruise-specific coverage for ocean voyages.
• Choose international policy options even for domestic cruises for access to onboard medical cover.
• Review medical condition coverage and complete assessments if required.

The full cruise travel insurance guide is available at racv.com.au, helping Australians make informed decisions about protecting their cruise investments.

RACV Travel and Experiences competition

Buy any RACV Travel Insurance International or Domestic policy by 31 October 2025 for your chance to win 1 out of 4 $5,000 RACV Travel & Experience gift vouchers.

RACV’s award winning travel insurance

RACV Travel Insurance has been awarded Mozo’s 2025 Experts Choice Award for Comprehensive Travel Insurance, offering Exceptional Quality Travel Insurance for Australian travellers. For more information, visit RACV Travel Insurance.

About Mozo Experts Choice Awards: The Mozo Experts Choice Awards have been helping consumers make informed purchase decisions for the past ten years. Their extensive award selection process by a panel of expert and experienced judges evaluates thousands of products helping offer exceptional value or quality to Australians each year.

 

^{The information provided is general advice only. Before making any decisions please consider your own circumstances and the Product Disclosure Statement and Target Market Determinations. For copies, visit racv.com.au. Royal Automobile Club of Victoria (RACV) Ltd AR 001243563 is an authorised representative of the issuer and receives commission for each policy sold or renewed. RACV Travel Insurance issued by Tokio Marine & Nichido Fire Insurance Co., Ltd ABN 80 000 438 291 AFSL 246 548. Terms & conditions apply, refer to the PDS.}

^{*Terms and conditions apply. Vic residents only. Competition closes at 11.59PM (AEDT) on 31 October 2025. Draw will take place at 485 Bourke Street, Melbourne, VIC 3000 at 12.00PM (AEDT) on 3 November 2025. Winner will be published on the RACV website at racv.com.au/competitions on 3 November 2025 and notified by phone and/or in writing. For full terms and conditions, please refer to racv.com.au.}