UK Travel Insurance Articles
search advanced search

Home >> Travel Insurance Articles


Avoid These Travel Insurance Hazards

Article by Simon Christopher
Article added: 9/2/2008 - Last updated: -
Rating: 1.00 1.00 (1 votes)


According to a major survey undertaken by eSure last year, one in every seven Brits traveling abroad will make a medical claim on their travel insurance. That’s a scary statistic, but an even more frightening one is that a full 25% of us jet-off around the world with no holiday insurance at all.

With travel insurance cheaper than it has ever been, it’s foolhardy to go off on holiday without protecting yourself against the expense of lost luggage, theft, medical mishaps and cancellation. In many cases, if you shop around for the best deal, you can find standard single trip cover for as little as a tenner. It does require some shopping around though, together with an understanding of the most common hazards that could result in you paying far more than you need to.

Hazard #1 – Over 65 Travel Cover at Triple the Cost

The Association of British Insurers claims that people over 65 are three times as likely to make a claim on their insurance. When they do, the claim will be three times the size of claims made by younger policyholders. That’s the justification for charging double, and sometimes triple the premium for travel cover over what they charge to insure those under 65. Many insurers won’t even issue a policy for someone who is over 65 – and even more refuse to cover those over 70. By the time you reach 80, your choices for travel insurance are limited to just a few specialist insurers who charge whatever the market will bear.

While you won’t find any insurers who don’t charge more for over 65 travel insurance, shopping around WILL find you better deals. Look beyond the usual choices to find the cheapest cover that offers you just the benefits that you need. As a general rule, you’ll get a better premium from standalone insurance offered by traditional or specialist insurers than you will from most of the providers who act as intermediaries or agents for the insurance companies. One provider that often tops price comparison tables of the cheapest cover for over 65's is Insure and Go, who charge about 25% extra for over 65 travellers rather than the 100% or more that you’ll find from some providers. Again, confirm this for yourself by comparing the market and checking the small print.

Hazard #2 – Insurance from Non-Insurers

Where you buy your travel insurance and who sells it to you can also play a major role in how much you pay for a policy. These days it seems like everyone is offering to sell you insurance – your bank, your credit card company, even the local supermarket. In many cases, these glorified insurance agents are not in the business of selling insurance – they’re in the business of re-selling insurance. You’ll often pay far more for your travel cover through a non-specialist insurer than you would if you go straight to the source.

As a general rule of thumb, you’re likely to save money by buying from a traditional or specialist travel insurer, but this can only be confirmed by shopping around. Perhaps as important, a traditional insurer can offer you advice on cover that you’ll need and help tailor a policy to suit your particular circumstances. Most of the high street retailers only offer one-size-never-fits-quite-right policies.

You may get an even better deal if you check with an insurer with whom you already have a policy. For example, you may already be covered through your home contents or health insurance policies for some items and claim events, possibly requiring only a basic, top-up policy for anything not covered.

Hazard #3 - Travel Agent Prices

Your travel agent should know travel insurance and be able to offer you a great deal, right? Wrong. According to the Treasury Select Committee, policies bundled with your holiday package can cost you over 91% more than the cheapest provider. That’s nearly double what you’d pay by shopping around for the most competitive rates.

Currently, travel policies packaged with other products and sold through an intermediary (i.e. your travel agent who doesn’t insure you, he merely sells you cover provided by another insurer) are not subject to FSA regulation as are standalone insurers.

While MPs are calling for tougher rules to cover travel agency insurance policies, until those rules are in place, you can get caught out paying almost double for your holiday cover.

Hazard #4 – Multiple Policy Excesses

All policies contain a standard excess which requires you to contribute an amount towards the cost of a claim. However, some policies will charge you multiple excesses for the same claim event. For example, if you were to fall down some stairs, break your leg and smash the camera hanging around your neck, you could have to pay one excess for the medical claim and another for the broken camera. The best way to be sure is to read the small print or confirm the terms of the policy excess with the insurer before buying.

A Final Caution

The best way to ensure you get the right cover for your holiday at the right price is to know what cover you need, compare as much of the market as possible for the best prices and ensure your policy offers appropriate protection for your trip. If you’ll be participating in winter sports, diving or extreme sports, for instance, you may need separate cover. Better to pay for it than to be uninsured if things should go wrong.

Above all, know what you need and know what you are buying by reading the small print before you part with your money.



PLEASE NOTE: The guidance published in this article is for information only and does not constitute financial advice or a recommendation of any particular travel insurance product or provider. If you are in any doubt please consult an independent insurance adviser. A database of advisers in your area is available at www.unbiased.co.uk

Copyright UK Insurance Index http://www.uk-insurance-index.co.uk. All rights reserved.


comments about this travel insurance article

Comments About this Article:

 Add a Comment


share this travelinsurance article

Share this Article:



please rate this travel insurance article

Rate this Article:


Please rate this article between 0 and 5
with 5 being top.
All ratings received for this article.

all categories ALL CATEGORIES
A-Z Categories

popular categories POPULAR CATEGORIES
Car Insurance
Home Insurance
Life Cover
Mobile Phone Cover
Pet Insurance
Travel Insurance

directory categories DIRECTORY CATEGORIES
Business
Event
Health
Home & Property
Insurance Brokers
Life & Protection
Marine
Motor
Non UK Insurers
Pet & Animal
Personal Possessions
Specialist Cover
Sport
Travel

review categories REVIEW CATEGORIES
Business
Car & Motor
Health
Home
Insurance Companies
Life Cover
Motorcycle
Pet & Animal
Possessions
Sport
Travel

article categories ARTICLE CATEGORIES
Business
Car & Motor
General
Health
Home & Property
Insurance Awards
Insurance Guides
Life Cover
Pet & Animal
Travel

news categories NEWS CATEGORIES
Business Insurance News Feed Business News
Car Insurance News Feed Car and Motor News
General Insurance News Feed General News
Health Insurance News Feed Health News
Home Insurance News Feed Home & Property News
Life Insurance News Feed Life Cover News
Pet Insurance News Feed Pet and Animal News
Travel Insurance News Feed Travel News

FEATURED SITES
CompareTheMarket Travel Comparison
CompareTheMarket.com
CompareTheMarket makes it easy to quickly compare single trip, annual and winter sports holiday cover from multiple providers.

Insure & Go Travel Insurance
Insure & Go
Insure & Go covers over 1 million people each year for holidays, business trips and long stay travel insurance.

latest listings LATEST LISTINGS
Gnu Insurance - affordable travel insurance for over 50s
ERV Travel Insurance
Coverwise Travel Insurance
Explorer Travel Insurance
OULdirect - very low cost travel insurance

latest reviews LATEST REVIEWS
Explorer Travel Insurance
Ageas Travel Insurance
Explorer Travel Insurance Annual Multi-Trip Policy
GNU Travel Insurance
Insureandgo Holiday Insurance

latest articles LATEST ARTICLES
How to get travel insurance with a pre-existing medical condition
How does Foreign Office advice affect your travel insurance policy?
Do you need specialist travel insurance for a smooth cruise
Winter sports travel insurance - what is it and when do you need it?
Exceedingly good travel insurance advice



Home | Privacy & Cookies | Terms of Use | Contact | Submit Site | Advertisers

Page protected, do not copy

This website uses cookies to ensure a reliable browsing experience. If you continue to use this website you are consenting to us using cookies in this way. To find out what cookies are, which ones we use and why we use them please click here.

Copyright © 2017 UK Insurance Index. All rights reserved.
All directory listings, articles and reviews are provided as information only and do not constitute advice or a recommendation of any product or provider. If you use these insurers, we take no responsibility and give no guarantees, warranties or representations, implied or otherwise, for the content or accuracy of these third-party web sites or companies. If you have any doubts you should consult an authorised independent financial adviser for advice based upon your individual needs and circumstances. A database of advisers in your area is available at www.unbiased.co.uk.