Travel Insurance: cheapest airfares on record but does travel insurance make it good value?

There has never been a cheaper time to fly! Savvy flyers are going online and taking advantage of the cheapest air fares on record. Reports from the Bureau of Infrastructure, Transport and Regional Economics state airfares this month alone are at a record 17 year low!

Encouraged by low fares, many consumers are online, surfing the web for the best possible deals available. Online travel insurance companies are also creating a storm online. Previously the luxury of purchasing travel insurance could only be done through a travel agent. It appears this was an extremely lucrative business for travel agents. Commissions of 40% and 50% were added to policies which were not the norm elsewhere, when you realise only 9% was added to international air fares and 10% on holiday packages. Baby boomers are suffering more than anyone with agents typically charging double to what’s available online!

It is fair to ask, how well equipped Aussie consumers are in making informed decisions about travel insurance. The reliability of receiving travel insurance from an experienced agent can be beneficial and worthwhile. But with exceptional value online the consumer will be hard pressed to go elsewhere. It is important to read all the fine print while online and ensure the application is filled in properly and make the appropriate level of cover, there should be no surprises. Be careful and relish the savings!

Learn more about planning your holidays and how to get cheap flights.