Home News Travel Insurance: Airline vs Insurance Companies. Which is Better?

Travel Insurance: Airline vs Insurance Companies. Which is Better?




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Residents of Singapore have five options to choose from when looking to book a ticket with a Singapore-based airline. In large part, the decision will depend on the destination. Singapore Airlines serves destinations like New York, London, and Paris while regional airlines, like Tiger Air, focus on serving Southeast Asian destinations like Bangkok, Kuala Lumpur, and Manila. Regardless of your destination, however, you will likely be asked at checkout whether or not you would like to purchase a travel insurance from the airline. Are these products worth your money?

Airline Destinations
Singapore Airlines 64
SilkAir 51
TigerAir 40
JetStar Asia Airways 28
Scoot 23

Travel Insurance’s Value

Travel insurance can cover almost every facet of your travels from the cost of canceling the trip, trip interruptions, trip delays or medical costs overseas. This insurance can even cover the cost of evacuation for you and your family during a natural disaster or to bring your remains home in the event of death. Additionally, the majority of these policies also cover terrorist related events which are unfortunately becoming more prevalent in the 21st century.

While these types of events are rare, the financial burden to travelers who experience them can be significant. A broken leg can cost thousands of dollars in hospital bills, and an emergency helicopter trip to get you to the hospital could double this amount. For this reason, at least considering the purchase of travel insurance can be a prudent practice for those whose trips involve a reasonable chance of injury or travel interruptions.

In past articles, we have explored this topic deeply, researching the costs and benefits of travel insurance products and providing our recommendation for the best travel insurance programs available in Singapore. We now want to compare these plans from insurance companies to travel insurances offered by the airlines in Singapore. With the recent partnership between Scoot and TigerAir, we have elected to only feature insurance provided by TigerAir in this analysis.

Travel Insurance: Airline vs Insurer

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In our research, we have found that most private travel insurance programs offered by insurance companies tend to provide higher maximum coverage amounts for lower prices than those offered by airlines. Part of the reason is that when the insurance is offered directly from the insurance company, as is the case with insurers like Allianz or Direct Asia, there are no middle man. In contrast, when you purchase travel insurance through an airline, airlines tend to receive a portion of the price of insurance as a commission, thereby inflating the price that a consumer ends up paying. Therefore, you can eliminate the middle man and pay a lower price by going directly to the insurance company.

Singapore Airlines SilkAir TigerAir JetStar Asia Airways Average of Insurance Companies
Personal Accident & Death S$200,000 S$100,000 S$25,000 S$20,000 $308,501
Medical S$200,000 S$500,000 S$10,000 S$20,000 S$563,704
Evacuation & Repatriation S$300,000 S$300,000 S$25,000 S$50,000 S$987,931
Trip Inconvenience S$5,000 S$1,000 S$1,500 Original Flight Cost $S$16,135
Trip Cancellation S$5,000 S$5,000 Original Flight Cost Original Flight Cost S$10,685
Trip Delays S$1,000 S$1,000 S$450 S$1,040 S$1,132
Baggage Loss/Damage S$3,000 S$3,000 S$1,500 S$1,000 S$5,449
Baggage Delay S$1,000 S$1,000 None None S$1,072
Cost* S$55 S$45 S$18.99 $77.95 S$48

*Cost shown assumes a 1-week trip within Asia. The majority of costs are maximum limits. Please consult the summary of benefits for each policy before making any traveler’s insurance decision.

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. For this reason, it is important to understand the types of risks you are facing when traveling. For a business traveler, a baggage delay could mean a missed meeting or presentation material stuck in transit. For a personal traveler who will be surfing, zip lining or hiking through mountainous terrain the personal accident and medical coverage will be most critical. It is also important to note that the majority of these policies are priced for travelers between the age of two and 70 years old. If you are over age 70 or traveling with an infant, there may be special pricing requirements to consider before your next trip.

Before your next trip, consider what risks you are facing and determine whether this travel insurance is right for you and your family.

The article Travel Insurance: Airline vs Insurance Companies. Which is Better? originally appeared on ValuePenguin.

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