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Travel insurance. Should you buy it from airlines?



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Think twice before buying travel insurance from airlines. You may not be getting value-for-money coverage from them.

While it may appear convenient to click on ‘Yes’ for travel insurance when purchasing a flight ticket online, you’ll find it’s more worthwhile for you to buy travel insurance from insurance companies instead.

Whether you are travelling for business or holiday, buying travel insurance is a must as it protects you against trip delays, cancellations and medical costs. It can even pay for evacuation for you and your family in the event of a natural disaster or bring your remains home should you pass on overseas.

Most airlines offer travel insurance and many of us are tempted to buy from them as it is so convenient to buy at the same time as your flight. Independent researchers, ValuePenguin, discovered that insurance companies tend to offer higher maximum coverage amounts for lower prices than those offered by airlines. This is because when the insurance is directly offered by insurance companies, they are able to cut costs by bypassing the middleman as is the case with insurers like Budget Direct Insurance.

Airlines, however, tend to receive a portion of the price of insurance as a commission, thereby inflating the price a consumer ends up paying.

The chart below by ValuePenguin shows the difference in the type of coverage offered by airlines in Singapore. Check them out carefully to make sure the coverage suits your needs before deciding to buy the insurance.

 

Singapore Airlines

SilkAir

TigerAir

JetStar Asia Airways

Average of Insurance Companies

Personal Accident & Death

S$200,000

S$100,000

S$25,000

S$20,000

$308,501

Medical

S$200,000

S$500,000

S$10,000

S$20,000

S$563,704

Evacuation & Repatriation

S$300,000

S$300,000

S$25,000

S$50,000

S$987,931

Trip Inconvenience

S$5,000

S$1,000

S$1,500

Original Flight Cost

$S$16,135

Trip Cancellation

S$5,000

S$5,000

Original Flight Cost

Original Flight Cost

S$10,685

Trip Delays

S$1,000

S$1,000

S$450

S$1,040

S$1,132

Baggage Loss/Damage

S$3,000

S$3,000

S$1,500

S$1,000

S$5,449

Baggage Delay

S$1,000

S$1,000

None

None

S$1,072

Cost*

S$55

S$45

S$18.99

$77.95

S$48

*Cost shown assumes a one-week trip within Asia. The majority of costs are maximum limits. Please consult the summary of benefits for each policy before making any traveller’s insurance decision.

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