29 November 2017
A CHOICE review of travel insurance policies has found that buying your policy online and avoiding Australia’s leading travel agents could save you up to $420.
"A good travel insurance policy is the first thing you should pack before you take off on holiday but knowing where to buy your policy can leave you with a little extra spending money," say CHOICE Head of Media and spokesperson, Tom Godfrey.
CHOICE compared the travel insurance policies of two of Australia’s biggest travel agents, Flight Centre and STA Travel, with online insurer Good2Go.
"We found a family of four travelling to Bali for 10 days would spend 292% more on a policy with Flight Centre ($564) than one with Good2Go ($144). If they bought a policy through STA Travel ($208), they would be paying 44% more," says Mr Godfrey.
"Not only could you be saving hundreds of dollars by purchasing a policy online, it’s also less time consuming."
All compared policies offered unlimited medical expenses, unlimited cancellation expenses and $15,000 baggage expenses.
"Which ever travel insurance policy you purchase it always pays to read the fine print carefully and familiarize yourself with any exclusions.
"Typically, adventure sports, alcohol and pre-existing medical conditions are excluded from travel insurance policies. So if you’re planning to have few drinks or a bungee jump, it’s worth taking a little extra care.
CHOICE’s review also found the following common exclusions:
- Cancellation expenses following a Terror event
- Pandemic or epidemic such as Bird Flu
- Travel provider insolvency
- Cancellation due to travel provider’s fault such as a connecting train
"It’s also worth remembering that when a natural disaster occurs such as the Bali ash cloud, as soon as it becomes a ‘known event’ your insurer will no longer cover you if your flight is delayed or cancelled," says Mr Godfrey.
Travel insurance tips
- Avoid buying policies through a travel agent until you’ve compared it with those online
- Always read the product disclosure statement and check for exclusions
- Remember to activate your cover if you are taking it out through your credit card
Tom Godfrey, Head of Media and Spokesperson - 0430 172 669 - @choice_news