When you buy a travel policy do you know how much commission is being paid and to whom?
After all it's your money that being split up to the various parties.
I have no issue with a broker or agent receiving commission. Some of my insurances are placed through brokers and I'm delighted by the work they do.
Up to a third - sometimes more - of some online travel insurance premiums are commission
The going rate for commission on most fire based policies (Home, Contents) is 20% of the company premium.
In the case of travel insurance however it can be as high as 33% ( and I have even heard examples as high as 40%).
These are paid to people whose primary role is to 'source the business'. That means pressing you to buy travel cover from a particular company when you are making your bookings.
This is especially common on airline on-line booking sites.
If you're taking your family to the US for a holiday for 3 weeks then it's going to cost you as much as $660. If over $200 is going to be paid in commission then you will probably join me in questioning why-so-much.
The companies that you can 'deal direct' generally provide the best pricing.
Another important consideration is, when does your Gold or Platinum credit card cover your travel insurance automatically.
We will be exploring this issue in upcoming stories as it is certainly not a simple issue, as many would like to think.
The last thing you can afford is to be stuck in an overseas hospital needing urgent expensive treatment to find out that what you thought was covered, isn't.
Nearly every credit card insurance plan has conditions that apply to the granting of cover. For example, it may require you to pay at least 50% of your travel on your card.
Never assume travel cover is automatic; check the conditions and for added security have your bank or issuer confirm your cover in writing.
Always check the policy conditions to understand exactly what you are insured for.
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