Airline Carriers Are Taking Kiwis for A Ride

Media Release|For immediate release

Don’t Get Tricked By The Pre-Tick!

Airline Carriers Are Taking Kiwis for A Ride

Kiwis are at risk of being misled by airline giants selling unwanted travel insurance online. New research fromComparetravelinsurance.co.nz shows that this deceptive practice could also see New Zealand travellers paying almost double.

Both Jetstar and Air New Zealand have received backlash this week for their use of forced opt-outs for travel add-ons when booking flights. Unwary customers are automatically being charged for travel insurance, which is sneakily added into their basket during the purchase process. This common practice amongst Australian and New Zealand Airlines is illegal in Europe and has been for many years.

The findings from Comparetravelinsurance.co.nz show booking travel insurance through an airline could see customers paying almost twice as much for the convenience.

Director of Comparetravelinsurance.co.nz Natalie Ball said: “Consumers can expect to save up to 49% on travel insurance by simply un-ticking a pre-selected box.”

Comparing policy prices for a one week trip to Australia and Fiji, Compare Travel Insurance found that:

• 1Cover.co.nz was the most competitively priced overall. Their comprehensive policy costs $33 for travel to Australia, which is 49% cheaper than booking online through Qantas and $17 cheaper than Air New Zealand.

• Columbus Direct offer comprehensive cover at $47 for both trips, making them cheaper than all the airline carriers when heading to Fiji.

• Worldcare will cost you $39 for the same trip to Australia – that’s $26 cheaper than Qantas.

• House of Travel cost $41.20, over $20 cheaper than Qantas.

• AA Travel will cost you $54, which was slightly more expensive than Air New Zealand but still significantly cheaper than Qantas.

• New Zealand holidaymakers could save up to $32 per person purchasing with travel insurance specialists rather than airline carriers.

In summary, purchasing direct with a travel insurance specialist or using a travel insurance comparison offers holidaymakers more bang for their buck.

Ms Ball added: “The most alarming aspect of our findings is that unsuspecting travellers are blindly paying more, for less cover, leaving them exposed to the risk of having too little cover in the event of an emergency."

Travel insurance specialists 1Cover offer $15,000 of baggage cover, Worldcare offer $20,000, compared to Air New Zealand $6,000, Virgin Australia $5,000 and Jetstar $2,500. Travellers with pre-paid travel bookings such as flights, tours and accommodation should compare the levels of cover for cancellation as this varies between providers. 1Cover, AA Travel, Qantas provide unlimited coverage for cancellation fees and lost deposits, House of Travel covered up to $200,000, Southern Cross up to $30,000, Columbus Direct up to 15,000, whereas Jetstar cover up to $5,000.

Jonny Knox General Manager of 1Cover Travel Insurance said: “When you buy travel insurance it’s important to compare the policy benefits as well as price. People often assume paying more means getting more but that’s not always the case. In the instance of one-size-fits-all policies offered by the airlines, travellers should be mindful that they may not be covered for pre-existing medical conditions.”

Ms Ball concluded: “Although it might seem convenient to buy your travel insurance at the same time as booking flights and accommodation, you will pay for the perceived convenience. Using a comparison website makes it easy for travellers to compare cover levels and prices side by side in seconds.”

How To Avoid Getting Ripped Off When Buying Travel Insurance

• Some airlines are cheeky enough to pre-select travel insurance for you, so check the total summary as you may need to uncheck the travel insurance box.

• Be wary of travel insurance that comes with flight and accommodation bookings. It might seem convenient to buy your insurance this way but you should check your options before you commit.

• Airlines are not travel insurance specialists and cannot provide the expert advice needed in determining the best cover for you.

• Not all policies are made equal, so always compare policies from a range of providers.

• Don’t assume that paying more for insurance means more coverage, as some insurers can charge more for less cover.

• Always read the small print - a travel insurance policy is a legal document, read policy documentation before you purchase the policy.

• After you buy you have between 14 and 19 days (depending upon your provider) to change your mind. Make sure you double check everything within this time (before your journey begins). You won’t be able to cancel the insurance or get a refund after this time.

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