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Mozo says Australians paying up to three times too much for travel insurance

August 7, 2014 Insurance No Comments Email Email

According to research by Australian financial and travel insurance comparison website Mozo, Australians are paying up to three times too much for their travel insurance by booking it through airlines and travel agents instead of shopping around.

Mozo’s research reveals that it compared the cost of purchasing travel insurance policies from 57 insurance brands, airlines and travel agents and found that unsuspecting travellers buying insurance as an add on to their flight or holiday package could pay up to 200% more for the convenience, with the difference as much as several hundred dollars.

Mozo quoted an example of by booking through Qantas, a 14-day comprehensive policy for a family of four travelling to the US costs $AUD504, but by shopping around and comparing quotes online, the same family could find a comprehensive policy for as little as $AUD164, which is an incredible saving of $AUD340.

Mozo director Kirsty Lamont says travellers are paying through the nose for the convenience of a quick booking, adding, “It might be convenient to add in extra options like travel insurance when booking flights and holiday packages, but it’s certainly not cheap, with travel operators receiving huge commissions on insurance – up to 53% in the case of Qantas.”

She said that to help travellers find the best value insurance and avoid paying too much, Mozo has just rated 133 policies from 57 Australian travel insurers by gathering quotes for a range of common travel scenarios for the new Mozo Experts Choice Awards, with Mozo’s research clearly showing that to avoid paying too much, travellers should shop around and compare travel insurance quotes online to make sure they are getting the best policy for their needs at the best price.

Mozo also awarded their Experts Choice Award 2014, with the Gold Award for the best Comprehensive Policy Southern Cross Travel Insurance TravelCare and for the Best value Policy going to Insure&Go One Trip Bare Essentials.

Mozo Experts Choice Awards 2014 – Travel Insurance
Category Award Winner
Best ValueComprehensive Policy Gold Southern Cross Travel Insurance TravelCare
Silver Worldcare Comprehensive
Bronze 1300 Travel Insurance Comprehensive
Best ValueBasic Policy Gold Insure&Go OneTrip Bare Essentials
Silver 1Cover Basic
Bronze Worldcare Budget
source: June 2014

Kirsty Lamont went on to say that getting stung by too-high prices is not the only problem, revealing that travellers who pick up insurance as an afterthought may also not be getting sufficient coverage, highlighting the importance of shopping around for travel insurance and comparing conditions before taking out the policy.

She added, “Insurers have different definitions, different exclusions and different levels of cover, so it’s vital to compare options to find a policy that offers the best price as well as the best fit with your needs, further adding, “It’s easy to compare quotes on Mozo’s travel insurance database, which compares more travel insurers than any other Australian site and travellers can get a quote based on their own personal travel plans and compare all the top features in seconds, from overseas medical to cancellation and lost luggage fees”.

It appears Mozo has exposed a situation that many in the industry have known about for some time, yet regarding which, probably few consumers are aware.

While it is imagined that nobody has any objections to paying reasonable fees, commissions or mark ups for convenience and quality, many consumers may well be very surprised to hear how much that mark up or commission levels really are and how much they are being charged over the real cost by some insurers, airlines, other operators and travel agents.

A report by John Alwyn-Jones, Special Correspondent

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