I am of the same opinion as Lady Raincorn. I have a pre-existing condition and so travel insurance is about £1000 for me for a year in Oz. My flight was £800 so I haven't taken any out. I have now arrived in Sydney (last week) and have signed up for a medicare card and visited the doctor to get my prescriptions. Seeing the doctor was free, I just paid for my prescriptions ($40 each mind you! but insurance wouldn't change that). I haven't brought anything high value with me - cheap (£200) laptop, kindle, ipod, and clothes so I don't see the value in insuring my things when insurance companies rarely pay out anyway.
I was just reading my Lonely Plant guide and it says insurance is 'essential', but why?? Am I missing something? I'm pretty sure it's all about money making.