Travel insurance can be quite specific about when they’ll cover domestic trips. For example, Monzo’s says
Trips inside the UK must be more than 100km from your home and include at least two nights’ stay at pre-booked accommodation.
You’ll probably find that travel insurance from other providers will have a similar rule.
The insurance that comes with Monzo Max also only covers you (and your phones), and not the rest of your family - unless you pay an extra £5 a month.
If you’re mostly interested in the insurance products, this makes it more expensive than packaged accounts from other banks – but it also includes other benefits like a Railcard, cinema tickets and sausage rolls from Greggs, so you should work out whether you’d be likely to get enough value from those, when comparing with the cost of getting insurance elsewhere.
You might find the MSE guide to packaged bank accounts useful:
https://www.moneysavingexpert.com/banking/best-packaged-bank-accounts/