Airline Add-On Travel Insurance Priced by Airfare — Same Coverage, Premiums Differ by up to 34%

Adding travel insurance when booking a flight is a common practice among many Hong Kong travellers. However, the latest test by 10Life’s Research and Data Analytics team found that the same coverage may not always come at the same price.

Using the profile of one Hong Kong adult traveller, 10Life compared airline embedded travel insurance for a 14-day Hong Kong to New York trip across two departure dates and three economy fare classes, covering six scenarios in total. Each scenario involved the same travel insurance plan, coverage level, coverage details and benefit limits. 

Key findings: 10Life found that premiums for the same airline embedded travel insurance plan ranged from HK$859 to HK$1,153 for the same route and trip duration, a 34% difference. Every HK$1,000 increase in airfare was associated with an increase of around HK$22 in the add-on premium, while similar coverage via an insurance comparison platform cost around HK$262, about one-quarter of the airline’s highest quote.

Across the six tested scenarios, higher airfares were consistently associated with higher add-on travel insurance premiums. 10Life’s analysis found an almost linear relationship between airfare and premium: for every HK$1,000 increase in airfare, the add-on travel insurance premium rose by around HK$22.

Travel insurance premiums should generally be priced according to factors such as trip duration, destination, traveller age and coverage details, as these are the factors that typically determine risk. For the same departure date, destination and trip duration, the likelihood of an accident or medical claim should not increase simply because the airfare is higher.

It is also worth noting that higher fare classes usually offer more flexible change, cancellation or refund arrangements, which could theoretically reduce part of the trip cancellation risk. However, in the test, premiums for higher fare classes increased instead of decreasing. During the booking process, consumers may not easily notice these fluctuations in the travel insurance premium.

10Life also reviewed two travel insurance products in the market offering similar coverage, referred to here as Product A and Product B. The findings showed that, whether purchased directly through an insurer’s website or via an insurance comparison platform, premiums were generally calculated based on trip details, such as destination, trip duration and traveller age. They did not appear to vary according to airfare.

The airline booking page's highest quote was HK$1,153, while Product A, which offers similar coverage, was quoted at HK$287 on the insurer's website and HK$262 through an insurance comparison platform — approximately 75% and 77% lower respectively. Even compared with the airline booking page’s lowest quote of HK$859, Product A was still approximately 67% and 70% lower through the two channels.

Product B showed a similar trend. It was quoted at HK$553 on the insurer’s website and HK$442 through an insurance comparison platform, which were approximately 52% and 62% lower than the airline booking page’s highest quote, and approximately 36% and 49% lower than its lowest quote. Unlike the airline booking page, quotes from insurer websites and comparison platforms did not appear to vary according to airfare, suggesting that the convenience of one-click add-on may come at a higher cost.

Airlines have increasingly separated flight-related charges, with services such as seat selection, baggage and ticket changes priced individually. Consumers can usually understand these differences because the service itself varies. Consumers generally understand why seat selection or baggage fees may differ, because the service itself is different. But if it is the same travel insurance plan, with the same coverage and the same benefit limits, the premium should not rise simply because the airfare is higher. In our test, the same coverage rose from HK$859 to HK$1,153 across different booking scenarios, a difference of nearly HK$300. From a consumer perspective, pricing the same insurance coverage based on airfare is difficult to justify.

10Life believes that when the same insurance plan is priced differently across fares or booking scenarios without a clear explanation, consumers may find it difficult to judge whether the premium is reasonable. This lack of transparency is unfair to consumers. The key question is simple: should travel insurance premiums be based on the coverage provided, or on the price of the flight ticket?

1.    Compare other purchase channels before adding travel insurance

Before confirming a one-click travel insurance add-on, consumers can take 30 seconds to open another tab and check similar products on insurer websites or insurance comparison platforms. Consumers may find plans with similar, or even better, coverage at a lower premium. In 10Life’s test, the premium difference could amount to several hundred Hong Kong dollars.

2.    A higher premium does not necessarily mean better coverage

When choosing a plan, consumers should compare key benefit limits, including medical expenses, trip cancellation, baggage and personal accident coverage. They should also read the claim conditions and exclusions carefully.

3.    A higher airfare does not necessarily mean more expensive travel insurance is needed

Trip cancellation cover is usually subject to a fixed benefit limit, meaning a higher airfare does not automatically result in a higher payout. Consumers should compare the actual benefit limit against their ticket cost, and review exclusions carefully, especially if the trip involves family travel, self-driving, diving, skiing, cruise holidays or other activities that may be subject to specific conditions.

Travellers who are unsure how to choose travel insurance may first use 10Life’s newly launched AI Smart Match Travel Insurance for an initial comparison. By answering just a few questions, the system can help identify suitable travel insurance products in one minute, based on the destination, trip type and potential risks. Travellers can also compare 70+ travel insurance plans on 10Life before departure, reviewing premiums, coverage and 10Life ratings. Once they have chosen the right plan, they can also purchase it online instantly.

Notes

1. Test conditions: one adult traveller, single return journey, destination New York, John F. Kennedy International Airport, with a trip duration of 14 days. The test covered two departure dates and three economy fare classes, resulting in six scenarios in total.  
2. Data from the airline booking page test was collected and updated on 6 August 2026. Comparison data for products purchased directly through insurer websites and insurance comparison platforms was also collected on 6 August 2026. 
3. Airline travel insurance premiums and plan information were obtained from tests conducted on the airline booking page. The airfare referenced in this release includes fuel surcharges, taxes and other charges. 
4. The comparison products purchased directly through insurer websites and insurance comparison platforms. Product A refers to MSIG iTravel Go Plan B; Product B refers to HSBC TravelSurance Worldwide Basic Plan. Quotes from the insurance comparison platform were obtained from the 10Life platform.
5. All amounts are in Hong Kong dollars. Premium amounts and percentages are calculated based on the relevant premiums and rounded to the nearest whole number. 
6. The comparison was made based on products with similar coverage. However, coverage scope, benefit limits, claim conditions and exclusions may vary between products. Consumers should read the policy terms carefully before purchasing. 
7. The premiums, discounts and quoted prices above may change from time to time and may vary depending on purchase time, purchase channel, trip details and policy terms. Actual prices and final coverage should be subject to the information shown on the purchase and booking pages, the relevant insurer’s published information and final approval. 
8. This study was conducted by 10Life’s Research and Data Analytics team.