Australian travellers are buying sky-high travel insurance policies

YOU spend hours hunting the cheapest airline ticket, but you don’t think twice about forking out for this other common travel cost.

Exclusive: YOU spend hours searching for the cheapest airline ticket, but you probably don’t think twice about forking out your hard-earned cash for this other common travel expense.

It turns out Australians are unwittingly paying up to triple what they should for travel insurance by booking directly with airlines or travel agents.

That’s according to comparison site Mozo.com.au, which gathered quotes from 57 travel insurance providers for 133 international policies in order to find the best — and worst — options.

Common scenarios were used, such as singles or families of four visiting the popular destinations of New Zealand, the US, UK and Thailand for a fortnight. The policy inclusions were similar.

The key lesson from their research? Shop around and you could save heaps.

In one example of a sky-high fee, a family would have to fork out a whopping $504 when booking a comprehensive policy via Qantas for a trip to the US. However, by comparing quotes online they could score a similar policy for as little as $164 (with iTrek and Fastcover).

That’s a saving of $340; money that could have made their holiday that bit more special, via a nicer hotel room, or some extra activities.

News_Image_File: A screengrab of the cost of travel insurance with Qantas.

If the same family visited Bali they could be charged $352 with NIB, or a much cheaper $117 if they went with Insure & Go.

Meanwhile, a 25-year-old single traveller visiting the UK would have to come up with $223 for a policy with NIB, while Southern Cross Travel Insurance was a mere $64. That’s $159 less.

The same traveller choosing Thailand instead could be looking at $201 with NIB, or they could pay just $61 with Worldcare.

Overall, the comprehensive travel insurance policies with the best value were found at Southern Cross Travel Insurance and Travelcare, while the top basic policies were at Insure&Go and One Trip Bare Essentials.

News_Image_File: You could save a bundle.

Mozo Director Kirsty Lamont says it’s clear travellers are paying through the nose for the convenience of a quick booking.

“Our research clearly shows 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,” Ms Lamont said.

“It might be convenient to add in extra options like travel insurance when booking flights and holiday packages, but it’s certainly not cheap. Travel operators receive huge commissions on insurance.”

News_Image_File: A family of four could save a lot of money on their travel insurance by shopping around.

Getting stung by outrageous prices isn’t the only problem; holiday-makers who pick up insurance as an afterthought may not be getting sufficient coverage.

This highlights the importance of shopping around for travel insurance and comparing conditions before taking out the policy.

“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,” Kirsty Lamont said.

Notes: Family quotes are based on two adults aged 30 years travelling with two dependent children aged six. Mozo collected these prices between 10 and 25 March 2014.

Travellers should carefully compare coverage levels and other policy features to select the most appropriate policy for their needs and ensure they are not paying more for cover they do not need.

Qantas says it believes its insurance packages are “very competitive when you look at the full range of benefits available”.

A respons from the company said: “Qantas offers customers comprehensive insurance options in partnership with QBE Travel Insurance, as well as opportunities for frequent flyers to earn and redeem points when they buy insurance.”

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