Australia’s biggest airlines are charging up to $800 more for packaged travel insurance policies by using adult prices for children, in what consumer group Choice says is a “staggering” price hike.
Choice has been examining the behaviour of Australia’s airlines and how much they charge travellers for insurance. Qantas, Jetstar and Virgin all give travellers the opportunity to buy packaged insurance as they book their flights online.
But their analysis of 30-day worldwide travel insurance policies found serious discrepancies between the price of insurance when it was bought along with flights, compared with buying similar policies as a standalone purchase.
It found that Qantas was charging $1,448 for a 30-day trip to the US, compared with $577 when a similar policy was purchased separately with the same provider. The cost difference was because the direct purchase allowed anyone under 25 to cover for free.
Choice’s head of media, Tom Godfrey, said: “When it comes to buying travel insurance the airlines are taking you for a ride and landing you with staggering price premiums.
“Qantas is hitting families, slugging them with a whopping 150% mark-up or an $871 tick-box tax.”
A spokeswoman for Qantas said children aged 12 and above were required to purchase adult fares and were covered as adults under insurance policy purchased through the airline. However, it acknowledged it was amending this process.
“However, this policy is being updated to include dependents up to 25 years of age as part of family cover,” she said. “Booking travel insurance through Qantas is optional and while we recommend customers purchase travel insurance, it is ultimately their choice where to purchase it.”
Jetstar’s online purchases also had similar price differences; buying insurance through their website cost $848 for two adults and two children. But purchasing a separate policy through Good2go The Works cost only $362.
A spokeswoman for the company said Choice had been “selective” in the comparisons it had drawn.
“Customers have the option to select AIG travel insurance through the Jetstar booking process, which is tailored specifically to the type of holiday and coverage they require, or they can choose to book insurance elsewhere,” she said.
Virgin Australia also offers an insurance policy for booking flights online, which costs $890 for a family of four. But a similar policy – purchased through Virgin Australia’s own separate website – only costs $445.
A spokeswoman said that due to “technical limitations” it currently quoted per seat.
“We are working with our partners to find a way for the system to distinguish between adult and child bookings,” she said.
