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Airlines ditch pre-selected travel cover

Virgin Australia and its affiliated low-cost airline Tigerair have stopped pre-selecting travel insurance for customers using their online booking platforms, the Australian Competition and Consumer Commission (ACCC) says.

Qantas-owned Jetstar will also end the practice, but not until July next year.

The “opt-out” model for services such as insurance, baggage allowance, seat selection and charity donations has caused consumers to pay for unwanted “pre-ticked” extras, according to the watchdog.

 “The ACCC is pleased it has been able to achieve this positive change for Australian consumers without having to pursue other options,” Chairman Rod Sims said.

He says the regulator will now turn its attention to international airlines operating in Australia that continue to pre-select extras.

Qantas does not pre-select extras on its online booking platforms. However, Jetstar’s decision to continue pre-selecting travel insurance until July has been branded as “unacceptable” by consumer group Choice.

Choice last month urged people to buy travel cover direct from insurers rather than pay inflated premiums charged through airline booking services.