Travel Insurance From Airlines vs Insurance Companies – Which is Better?

While airline-provided travel insurance coverage often offers convenience as compared to buying direct from insurance providers, does it come at a price?

ValueChampion Editorial Team

by ValueChampion Editorial Team on Mar 13, 2024

airplane docked at an airport

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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. Meanwhile, Scoot which started off focusing on Southeast Asian destinations like Bangkok, Kuala Lumpur, and Manila has now expanded to include international travel hubs like Berlin, Athens and Jeddah. 

Regardless of your destination, you will likely be asked at checkout whether or not you would like to purchase travel insurance from the airline. Are these products worth your money?

Singapore Airlines130
*Information as of February 2024

Related: Best Travel Destinations Off the Beaten Path to Beat the Crowd

Travel Insurance’s Value

Travel insurance can provide coverage for almost every facet of your travels from the cost of trip cancellation, 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 my seem unlikely, the financial burden to travellers 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.

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.

Related: Compare Travel Insurance Plans

plans at an airport
Source: Unsplash

Travel Insurance: Airline vs Insurer

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 unit 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 MSIG, FWD or TIQ, there is no “middle man” layer of cost. In contrast, when you purchase travel insurance through an airline, airlines tend to receive a portion of the price of insurance as a commission, inflating the price that a consumer ends up paying. Therefore, you usually get a better deal by buying directly from the insurance company.

Singapore AirlinesScootAverage of Basic Plans from Insurance Companies
Personal Accident & DeathS$80,000

For KrisFlyer Comprehensive

Overseas MedicalS$500,000

For KrisFlyer Comprehensive

Evacuation & RepatriationCoveredUnlimited$812,500
Trip CancellationS$10,000S$1,000$5,417
Trip DelaysS$1,500S$600$483
Baggage Loss/DamageS$4,000S$2,000$2,250
Baggage DelayS$400S$800$350
*Information as of February 2024

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.

If you are ready to purchase travel insurance and be protected for your next trip, check out our page to Compare Travel Insurance Plans in Singapore!

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