Low Cost Travel Insurance

Choice – Australia’a leading consumer rights magazine – believes travellers can save on insurance by buying policies online. Its report in August 2004 revealed that travel agents sometimes mark up their insurance deals by up to 60%. So if you are looking for low cost travel insurance its good to shop around.

“Travel agents have traditionally sold the majority of all travel policies, and can keep a high proportion of your premium or add a mark-up to the insurer’s net price,” said Choice.
“Some companies selling Allianz-underwritten policies for example, can keep up to 55% of your base premium, HBF pays commission rates up to 38% and QBE up to 50%. Flight Centre can receive up to 56% of what you pay for Cover-More policies,” said the Choice report.

QBE’s travel insurance manager Peter Andrew warns that although travel agents might charge more for their insurance policies, you actually get what you pay for.
“Travel agents add a significant amount of value – for service – when you’re in the middle of nowhere and something happens. The Internet can provide value for money but you might not get everything you need,” he said.

Some travel agents also have exclusive arrangements with travel insurers, minimising choice. So be aware that it’s difficult to shop around from any one travel agent. New laws have also changed the way travel agents can sell travel insurance. O ne of the disadvantages to the consumer is that since the Financial Services Reform of March 2004, travel agents are no longer allowed to advise or recommend travel policies.

That means more hard work on the traveller’s part, but well worth the effort and the energy considering your health and your finance could be on the line if something goes wrong!
When it comes to low cost travel insurance, it seems the best way to get a good deal is through the web.

The following websites all sell travel insurance, but remember to check the level of cover, which may sometimes be reduced for policies sold online.

• www.1cover.com.au
• www.cgu.com.au
• www.columbusdirect.com.au
• www.duinsure.com.au
• www.iselect.com.au
• www.travel.com.au
• www.travelinsuranceaustralia.com.au
• www.worldnomads.com.au

The Insurance Council of Australia says the assessment – and the resulting price – of travel cover is based on four main factors:

• Age
• Destination
• Your length of stay overseas
• Any pre-existing conditions

On average for a 23-day holiday you’re probably looking at between $100-$200 for comprehensive single cover (with no excess) and between $200-$400 for top family cover. For the cost of one or two nights’ accommodation – you’ll save yourself a lot of heartache if you end up with nothing to wear in Paris but the tracksuit you flew in!

ICA executive Rod Frail also suggests not leaving travel insurance too late. Giving yourself time to research and shop around is the best way to buy a travel insurance policy you’ll be satisfied with. “Make travel insurance part of your planning, not just a hurried decision at the end,” said Frail.

The ICA also advises you to consider the company you buy your insurance from, especially low cost travel insurance. “When choosing a cover for overseas travel, make sure the policy will be recognised around the world. In some countries, if they don't recognise the insurance underwriter, they may not admit you to a hospital.”