Australian expat insurance is a unique challenge when living abroad, as many Australian insurance policies do not cover overseas residency.
Medicare ceases to provide coverage outside of Australia, and private health, life, income protection, and property insurance may have restrictions or exclusions for expatriates.
Some countries even require expats to obtain local insurance for visas, while others allow international insurance policies.
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Some of the facts might change from the time of writing, and nothing written here is formal advice.
Understanding which insurance policies remain valid, which need to be updated, and which are required in the new country of residence is essential to avoid coverage gaps and financial risks.
Australian Expat Insurance
International Health Insurance for Australian Expats
Medicare does not cover Australians living overseas except in 11 countries with Reciprocal Health Care Agreements (RHCA), which provide limited emergency treatment in public hospitals.
Expats must either suspend or cancel Medicare to avoid paying the Medicare Levy and Medicare Levy Surcharge (MLS) if they are still classified as Australian tax residents.
Expats generally need either international health insurance, which covers medical expenses across multiple countries, or local health insurance, which complies with host country regulations.
Some countries require private health insurance for residency visas, and failing to have the right coverage can lead to visa denials or medical debt.
For a full guide on Australian expat health insurance, including RHCA details, Medicare implications, and private insurance options, refer to our article on Australian expat health insurance.
Life Insurance for Australian Expats
Australian expats can keep their life insurance policies as long as they continue paying premiums, but policyholders must check for territorial restrictions and exclusions.
Some insurers may void coverage if the policyholder resides in a high-risk country or fails to notify them of an address change.
Expats have two main options:
- Retain an Australian life insurance policy – This is ideal for those planning to return to Australia or maintain financial ties there. However, payouts may be subject to foreign tax regulations depending on the expat’s country of residence.
- Switch to an international life insurance policy – Designed for expatriates, these policies offer global coverage, can be paid in multiple currencies, and avoid exchange rate risks on payouts.
Tax implications must also be considered. If an expat remains an Australian tax resident, their life insurance policy may still be subject to Australian tax rules.
If they change tax residency, their new country may apply inheritance taxes or income tax on policy payouts.
Expats should also update their policy beneficiaries, as failing to do so can lead to legal complications when claims are made internationally.
Some countries may impose inheritance laws that override Australian policies, making it essential to review the legal framework of the host country.
Many Australian insurers, including MLC, TAL, AIA, Zurich, and AMP, provide life insurance policies that remain valid for expats, but each has specific conditions.
Before moving abroad, expats should confirm their policy terms, verify coverage restrictions, and assess whether an international policy is a better option.
Australian Expat Travel Insurance
Australian expats often assume that standard travel insurance is enough for long-term stays, but most policies only cover short trips (usually under 90 days) and exclude expats who have permanently relocated.
This is because travel insurance is designed for tourists, business travelers, and short-term visitors, not for individuals living abroad.
Expats who still maintain an Australian residential address and tax residency may qualify for extended multi-trip travel insurance, which covers multiple trips per year, but only for temporary stays abroad.
Once an expat has officially moved overseas and has severed Australian residency, most Australian travel insurers will void coverage, requiring them to switch to expat-specific providers.
For expats who travel frequently, some insurers offer global travel insurance policies, covering:
- Emergency medical care abroad (but not long-term healthcare).
- Trip cancellations and delays.
- Lost baggage and personal belongings.
- Emergency evacuation and repatriation (which is essential for those living in countries with poor healthcare infrastructure).
However, it is important to note these policies do not replace full health insurance, as they are short-term and do not cover routine check-ups, pre-existing conditions, or long-term treatment.
Expats who rely on travel insurance alone risk being uninsured for essential medical needs.
Many visa programs, such as those for the European Union, UAE, and Singapore, require expats to purchase local or international health insurance, as travel insurance does not meet their minimum coverage requirements.
Expats should also check whether credit card travel insurance policies remain valid after changing residency, as most are limited to Australians who reside domestically.
Income Protection and Disability Insurance
Income protection insurance provides monthly payments (typically 75% of pre-tax earnings) if the policyholder becomes unable to work due to illness or injury.
However, for expats, policies may have geographic restrictions, foreign tax implications, and payout delays.
Expats who have income protection through superannuation should also check whether their super fund allows insurance for non-residents.
Some superannuation-linked policies lapse automatically once the account holder stops contributing.
For disability insurance, the same concerns apply. Many Australian policies only cover disability within Australia, meaning that if an expat suffers a serious illness or accident abroad, they may not be eligible for benefits.
Expats should confirm if their disability insurance allows claims for overseas incidents and whether local government benefits in their host country can supplement their coverage.
In some countries, such as New Zealand, Canada, and parts of Europe, expats may qualify for government-provided disability benefits, but these often require residency status and local tax contributions.
Expats working on temporary visas or contract work may not qualify for these benefits, making private international disability insurance a necessary safeguard.
Property and Home Insurance for Expats
Australian expats who retain property in Australia or purchase property abroad must ensure they have the right insurance coverage for their assets.
Standard home and contents insurance policies may no longer apply once the owner becomes an expat, requiring adjustments to coverage.
Home and Landlord Insurance for Expats with Australian Property
Expats who rent out their Australian home must switch from standard home insurance to landlord insurance, which covers:
- Loss of rental income due to tenant default or property damage.
- Legal liability if tenants or visitors are injured on the property.
- Building and structural damage from events such as fire, storms, and vandalism.
Landlord insurance is essential because regular home insurance may not cover damages caused by tenants.
Expats should also check whether their policy includes coverage for unoccupied periods, as some insurers reduce coverage if a home is left vacant for more than 60–90 days.
Expats who keep an unoccupied home in Australia may need vacant property insurance, as standard policies often exclude theft, vandalism, and water damage for long-term empty properties.
Some insurers charge higher premiums or require regular property inspections for vacant homes.
Home Insurance for Expats Buying Property Abroad
Expats purchasing residential or investment properties overseas should be aware of local insurance laws and currency risks.
Many Australian home insurers do not cover overseas properties, requiring expats to obtain local property insurance.
For expats with mortgaged properties overseas, many banks require home insurance as a condition for the loan. Lenders in countries like Singapore and Canada may also require life insurance to cover mortgage repayments if the owner passes away.
Expats should compare local vs. international property insurance providers and consider coverage for legal disputes, property devaluation, and structural issues.
Australian Expat Car Insurance
As with real estate, expats who own a car in Australia or drive overseas must check whether their existing Australian car insurance remains valid.
Most Australian auto insurers do not cover foreign-registered vehicles, requiring expats to buy local car insurance in their host country.
Keeping an Australian-Registered Car While Living Abroad
Expats who temporarily relocate overseas but keep a car registered in Australia should check whether their policy remains valid. If a car is not in regular use, options include:
- Suspending comprehensive coverage to avoid paying high premiums while the car is unused.
- Reducing coverage to third-party insurance for legal compliance without full coverage costs.
- Leaving the car insured under a family member’s name if they will continue using it.
If an expat leaves their car uninsured, they must deregister the vehicle, as it is illegal to keep an unregistered car without valid Compulsory Third Party (CTP) insurance in most Australian states.
Car Insurance for Expats Driving Overseas
Expats who drive in a foreign country must obtain local car insurance, as Australian auto policies do not apply abroad.
Many countries, such as Germany, France, and Japan, have no-fault accident laws, which affect how insurance claims are handled. Expats should also check whether their policy covers collision damage, personal injury, and liability for third parties.
For those driving in countries with high accident rates or poor legal protections, comprehensive international auto insurance may be preferable. This is especially relevant in developing countries, where legal disputes over accidents can be complex.
Before moving, Australian expats should check their new country’s car insurance laws, compare local policies, and consider the financial risks of owning a vehicle abroad.
For more in-depth guidance, it is recommended to consult an expat financial advisor.
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