RACV shares new insights revealing 35 per cent of travellers leave travel insurance to the last minute

A concerning trend in traveller behaviour shows that many Australians are booking travel insurance just days before departure, or even hours before departure, potentially missing out on crucial coverage and benefits, according to new insights from RACV.

RACV insights have found that 35 per cent of travellers* leave booking travel insurance until seven days from departure, with five per cent waiting until the day of departure.

With Melbourne Airport expecting to handle over 4.8 million passengers during the December-January holiday period, the issue of last-minute insurance purchases has never been more critical for Victorian holidaymakers.

RACV Travel Insurance reported a spike in policy purchases within 48 hours of departure+. This last-minute approach, while convenient, often stems from a combination of procrastination, misconceptions about coverage, and budget prioritisation.

"With Melbourne expecting nearly five million passengers this summer, the odds of travel disruptions affecting someone increase significantly but the good news is, if you’ve left it to the last minute, you can get cover in ten minutes with RACV Travel Insurance," Mr Peachey said.

“RACV’s message to customers is don’t panic – RACV can help you quickly tick this off your to do list even if you’re already in an Uber on the way to the airport or stuck in an endless bollard maze at passport check – it’s the perfect place to jump online while you’re waiting and get cover in ten minutes”.

It is important that customers carefully review and understand the policy to make sure it covers their individual need, so please review your product disclosure statement to understand all aspects of the policy.

Key reasons travellers delay booking travel insurance:

• Underestimating risk: Many travellers operate under an "it won't happen to me" mindset, viewing insurance as an unnecessary expense until departure becomes imminent and the reality of potential risks sets in.
• Prioritising the fun stuff: The destination, flights, accommodation, and activities are more exciting and leaving insurance as a last-minute consideration often doesn’t come to mind until you’re about to board the plane.
• Lack of awareness: A significant portion of travellers don't understand that many travel insurance benefits, particularly coverage for cancellations due to unforeseen circumstances, only apply when purchased shortly after booking their trip.
• Complexity and confusion: The overwhelming array of policy options and fine print can lead to decision paralysis, causing travellers to postpone the purchase until time pressure forces a quick decision.

“RACV is aiming to make travellers lives a little easier to get cover in ten minutes – even if they’re on the way to the airport,” Mr Peachey said.

RACV Members receive 15% off international and domestic cover. For more information, visit RACV's Travel Insurance webpage. 

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.com.au/insurance/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.