Prepare to be shocked

While significant numbers of travellers purchase travel insurance from their travel agent, many would be shocked at the difference in cost if they compared direct travel insurance versus travel agent prices. Purchasing direct through a travel insurance company is usually substantially cheaper than purchasing through a travel agent or tour company as they have no ‘middle man’ fees attached.

According to the Marketing Manager of direct insurance company 1cover.com.au: “Purchasing travel insurance through a travel agent or supplier can cost up to 66% more. In addition, travel agents may not always have back up in the event of bankruptcy, whereas all quality insurance companies (in Australia) are underwritten by a reputable insurance body.”

In advice supplied by insure4less.com.au, the company states: “Naturally, buying travel insurance direct and cutting out the travel agent or tour operator can bring the price down substantially, as these middlemen tend to earn high commissions.”

Purchasing travel insurance direct from the insurance company not only results in lower fees but also a more specialised service as naturally, travel is the agent’s area of expertise, not insurance.

Insuranceworld.com.au also support these figures saying that it’s worth noting that purchasing travel insurance direct from the insurer can save up to 60% on a travel policy, and also advise searching for a travel insurance quote online.

Even among travel insurance providers the rates and policy components can vary considerably, so it’s a good idea not to just grab the first policy offered to you but to take time for a careful comparison. For the easiest way to compare direct travel insurance, online can’t be beaten.

Some travel insurers operate wholly online and are able to offer rates that are made cheap, when compared to traditional travel insurance companies, due to reduced overheads yet they still maintain high value and reliability.

As NRMA Insurance advises: “Shop around – don’t just accept the insurance that your travel agent or airline offers you, there may be cheaper travel insurance available which suits your needs.”

Travel insurance is one of those life decisions that can impact heavily if you don’t put in the effort to make an informed decision. So take time to compare direct travel insurance versus travel agent prices, traditional insurance providers with online companies and company to company. It might take a bit of work but browsing online will certainly make it quicker and easier.