Are airlines ripping you off with travel insurance?

Travel insurance is one of those things; it’s a wise purchase to make but research shows you might just be paying through the nose for it.

According to consumer advocacy group CHOICE review of the airlines’ insurance policies, a family of four can save between $445 and $871 by purchasing a standalone cover and avoiding insurance offered by Qantas, Virgin and Jetstar in their online checkouts.

The catch is, when you are buying insurance through an airline, you get the ease of paying in one go at the checkout with your flights.

Whereas if you go with a standalone insurance policy this initially takes a bit more time, as you shop around or navigate the web.

CHOICE Head of Media Tom Godfrey claims the airlines are ripping families off and that Qantas is charging 150 per cent more.

“When it comes to buying travel insurance the airlines are taking you for a ride and landing you with staggering price premiums.”

CHOICE compared 30 day worldwide travel policies sold as part of the flight booking process on Qantas, Virgin Australia and Jetstar for international flights leaving in November and found all the airlines offer poor value policies compared to standalone policies.

“The airlines are being very sneaky by charging adult prices for kids who can be insured for next to nothing if you purchase standalone policies directly through an insurer,” says Mr Godfrey.Travel insurance tips

• Don’t buy travel insurance through an airline’s online checkout
• Read the product disclosure statement and note any excess payable and exclusions
• Compare policies as purchasing directly from an insurer can save you hundreds of dollars.