Add-on travel insurance offered by Qantas, Virgin and Jetstar, customarily bought by consumers ticking boxes while they book, can cost a great deal more than buying standalone policies, according to consumer advocacy group CHOICE.
CHOICE has conducted a review of 30-day worldwide travel insurance policies sold as part of a flight booking process.
It found that a family of four would save between AUD 445 and AUD 871 by purchasing a standalone policy instead of that offered by an airline.
Among the CHOICE findings:
A comparison of Jetstar’s Premium travel insurance and the Good2Go The Works policy (both are underwritten by AIG) found a 35-year-old single or couple would save 15% on a worldwide policy for 30 days if they bought the Good2Go policy.
CHOICE found that families were better off buying their travel insurance elsewhere because the price offered by airlines wass calculated per person for every traveller, “including the kids”. For a family with two children, buying the Good2Go policy would cost them AUD 362 – but if they tick the travel insurance option when buying a flight with Jetstar, they would end up paying more than double that – namely AUD 848.
Virgin Australia’s travel insurance is provided by Cover-More but again, CHOICE found it was much cheaper to buy the policy separately instead of ticking the check box when boooking. “A family with two children will pay AUD 890 for a 30-day worldwide policy but if they buy the Virgin policy separate to their flight they’ll pay AUD 445, a saving of 50%.”
Qantas Comprehensive cover is provided by QBE Insurance. QBE cost less than Qantas in all CHOICE scenarios and age brackets.
“A 35-year-old single, a couple or a family with two children under twelve can save from 25% to 37%, travellers over 60 around 7% to 24% and the QBE annual cover is almost 10% cheaper than the Qantas policy.”
For more details, see: https://www.choice.com.au/travel/money/travel-insurance/articles/flight-travel-insurance
Written by Peter Needham