$250 insurance rip-off you’ve been falling for
Aussies are forking out twice as much as they should on travel insurance, with a new study uncovering price differences of hundreds of dollars on virtually identical cover.
Comparison site Mozo compared the pricing of 271 international travel insurance policies from 71 insurers for its Mozo Experts Choice Travel Insurance Awards and found staggering cost differences of up to 142 per cent between travel insurance policies with comparable levels of coverage.
"Our analysis has uncovered price differences of hundreds of dollars between travel insurance policies with virtually identical standards of cover when travelling to some of the most popular getaways for Aussie travellers," says Mozo director Kirsty Lamont.
"If you haven't put in the time to compare travel insurance policies before jetting off, there's a good chance you have been caught out by this all too familiar travel money leak."
Mozo experts looked at the average cost of travel insurance for a family of four travelling for 14 days over four destinations including the US, the UK, Bali and Thailand. In the analysis, travel insurance policies with similar coverage limits like luggage and cancellation were grouped together and compared on a price-by-price basis.
The biggest price difference in Mozo's analysis was for a family travelling to the US, with the cost difference between two like-for-like comprehensive travel insurance policies coming in at more than $250.
"Many travellers treat insurance as an afterthought because it's not as exciting as booking flights, accommodation and activities," says Lamont.
But allocating a little time to shop around for insurance is worth it, she says.
"You don't want to put in the hard yards searching for the best deals on flights and accommodation only to see these savings fall by the wayside on an expensive travel insurance policy."
World2Cover was crowned Travel Insurer of the Year in the Mozo Experts Choice Travel Insurance Awards after scoring a win in all seven categories.