Online Travel Insurance Is Designed To Rip You Off: CHOICE

Consumer watchdog CHOICE has released the results of an investigation into the online travel insurance policies offered by Qantas, Jetstar and Virgin. It found that auto-selecting a policy when purchasing a plane ticket often resulted in a higher price tag and a raft of sneaky exclusions. Tellingly, most policies gave customers just ten minutes to review a 14,000 word document before the connection timed out.

In all, CHOICE reviewed 30 travel insurance policies from Australia's major airlines. It found that many of the options served up to consumers during the online checkout process were alarmingly sub par.

Jetstar Essentials was the worst offender, particularly when it came to flight delays. If a flight is delayed for six hours or more, Jetstar Essentials leaves its customers to fend for themselves. By contrast, other airlines provide stranded travelers with up to $425 per night for meals and accommodation.

Theft insurance was also left wanting. When electronic items such as smartphones, laptops or cameras are stolen, Jetstar Essentials pays out a maximum of just $750 for all items; a caveat that isn't immediately obvious when signing up.

In fact, all airlines were found guilty of not giving online users sufficient time to review a policy. On average, customers were given a maximum of 10 minutes to read the document before the flight payment screen timed out. Many of these documents contain over 14,000 words.

“It’s obvious the airlines don’t give consumers enough time to read the product disclosure statement to ensure they are making the right decision,” CHOICE's head of media, Tom Godfrey said in a statement.

“Buying travel insurance is not like grabbing a packet of chewing gum while standing at the checkout. Insurance policies can be complex products and consumers need to take time to ensure they are selecting a policy right for them."

While simply ticking a box might be convenient, it would appear we can't trust airlines to have our best interests at heart. CHOICE recommends that customers read the product disclosure statement (PDS) thoroughly and refrain from "opting in" to travel insurance during the online checkout process.

You can find a more extensive range of tips and recommendations at CHOICE's website.

[Via CHOICE]


Comments

    Why would anyone just choose it? Shop around, use a simple comparison site, anything.

    And this shit is legal too..!!
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    Ok... Two downvotes on one page from one guy and I'm being moderated..? How is that shit even fair..?

    Last edited 18/11/14 4:29 pm

    I'd recommend Travel Insurance Direct - used them mutiple times and the level of cover appears to be substantial enough for me.

    Use coupon code TIDTHANKS for 10% off.

    Would never recommend an airline for travel insurance when they rip us off already with baggage fees, seat selection fees etc. I'd also never recommend insurance offered through a travel agent as they also have their own interests.

      I compared Travel Insurance Direct with the quotes I got on http://www.comparetravelinsurance.com.au/ and both Insure and Go and Southern Cross Travel Insurance were cheaper even with the 10% off.

      I agree with the airline ripoffs. I just booked my flights to Bali and by the time you add on baggage, meal, flight entertainment and the rest the so called 'budget airlines' are no cheaper than the fully fledged fares. They even try to charge you extra for picking different seats.

    +1 ... i needed to claim recently and their instructions were clear and easy to follow (as well as being logical)

    ANZ's Credit card travel insurance is really quite good. And its free, or at least its included as part of the cards annual fee.

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