When buying an airline ticket, it is likely you will be asked at checkout whether or not you would like to purchase travel insurance from the airline. Are these products worth your money? We don’t think so….
Travel Insurance’s Value
Travel insurance can cover almost every aspect of your travel from the cost of trip interruptions, trip delays or medical costs overseas. This insurance can even cover the cost of evacuation for you and your family after a natural disaster or to bring your remains home in the event of death.
Although flight delays and lost luggage are inconvenient and can lead to damages, these costs are typically nothing compared to the costs associated with a sudden medical condition or an accident. even a broken arm can cost thousands of dollars in hospital bills and an emergency helicopter trip to get you to the hospital can easily double this amount. Therefore, medical and accident expenses are the 2 most important factors to take into consideration when choosing your travel insurance.
Travel Insurance: Airline vs Insurer
In research conducted by Valuepenguin, they have found that most private travel insurance programs offered by insurance companies tend to provide much higher maximum coverage amounts for lower prices than those offered by airlines. To make matters worse; in particular the coverage for those important risks of medical costs and accident costs is much higher and better at insurance companies. Therefore, our advice: Don’t buy insurance from airlines and spend 5 more minutes to buy from an insurance company. If you want to know which one is best or where to get best value for money go to our Insurance Market website and compare the offerings of more than 10 reputable insurers in Singapore!
As you can see from the table above, there are significant differences in the type of coverage that are provided by each Singapore-based airline. Part of the reason why airlines tend to be more expensive and provide less coverage is that they receive a large portion of the price of the insurance as a commission, thereby inflating the price that consumers end up paying.