Why it Pays to Shop Around for Travel Insurance

Posted on | December 23, 2009 | 9 Comments

It should come as no surprise that the Treasury has recently announced a review into the sale of travel insurance policies with package holidays. Consumer groups, such as ‘Which’ magazine, have been clamouring for a change in the law, because it appears that consumers have been getting a raw deal, in terms of over-priced and often inadequate cover. The government has set itself the task of calling for evidence and consulting widely before making its decision, be that to keep the ‘status quo’, go for tighter self-regulation by the travel agents and tour operators or bring the industry under full FSA regulation as it does for the ‘standalone’ insurance sector.

A review is long overdue, given that some 20 million consumers purchase travel insurance policies in the UK each year in a market estimated to be around £670 million pounds in 2006. As ‘Which’ have recently reported, there is evidence of mis-selling by tour operators and travel agents who account for almost 50% of all travel insurance sales. Whilst, it is probably only a minority who fall into this category, it is not hard to see that getting a customer to take out a travel insurance policy at the time of booking a holiday is a very lucrative way of boosting profits from the commissions earned. That’s all well and good, provided the advice given is accurate and customers are given access to all the information they need to make an informed judgement but sadly this is not borne out by the statistics. According to the Treasury, whilst 81% of banks and insurers explained what the policy covered, this falls to a pitiful 19% when a policy is sold through travel agents.

It always pays to shop around and it is hardly surprising that the internet has seen a huge growth over the last five years and this trend is set to continue. Not only does the customer get a wider choice than what is on offer over the counter at a travel agent, but it is so much easier to tailor a policy, all by a simple click of a mouse. Moreover, internet based companies do not have the high overheads of the travel agent in the High Street, which means cheaper premiums which can only be a good outcome for the consumer.

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9 Responses to “Why it Pays to Shop Around for Travel Insurance”

Normandie
December 23rd, 2009 @ 10:29 am

Try this site for a quick quote on travel medical insurance. TravelEx allows for pre-existing conditions. —> http://www.travelex-insurance.com/index.asp?location=07-0018
SaberBlade
December 23rd, 2009 @ 11:28 am

I think that you will find a great deal on Moneysupermarket.com thats where I got my travel insurance, and they actually had to pay out on my policy as I ended up in a French hospital.

My insurance was about 40pounds, and it was for annual insurance! I think from memory you could go away for up to 94 days at a time, or 17days at a time if you included winter sports.

Hope this helps – just remember to read the small print about how many consecutive days away from the UK you are covered for! Happy Travels!
glitter
December 24th, 2009 @ 5:48 am

healthquotes.awardspace.info – here is my health insurance plan. As I remember they can provide such a service.
buttercup
December 25th, 2009 @ 3:10 am

Checkout their theft rider, and the link for a free quote. http://www.travelex-insurance.com/index.asp?location=07-0018
ouleixia
December 25th, 2009 @ 10:12 am

Here are some links-
I had a similar situation- I was living in the Caymans Islands, no longer a Canadian resident, and wanted to travel for the summer. But every policy required that Canadian citizens be insured in their home privince, which I no longer have as non-resident. IMG was the only one I found, but as you DO have Canadian insurance, this will be easy for you. There are lots of short-term plans.

https://www.imglobal.com/travelinsurance/index.cfm?show=&&CFID=1718830&CFTOKEN=d9392e2d0226f2d2-EC75C061-1143-EBE5-76B31862584AA777

http://www.internationalsos.com,
http://www.travelexinsurance.com,
http://www.ijet.com,
http://www.travelassistance.com,
http://www.wallach.com,
http://www.travelguard.com,
http://www.independenttraveler.com/resources/article.cfm?AID=48&category=8,
http://www.ricksteves.com/plan/tips/insurance.htm.
scuba snack
December 25th, 2009 @ 11:27 pm

You can get a refund if your insurance covers illness as a reason for cancellation. Different policies cover different contingencies. The way you would prove illness is by a note from your physician.

InsureMyTrip.com is one site that has comparisons among policies. I'm sure there are others.
Rick B
December 26th, 2009 @ 5:01 am

It could very well be true. Although they are different countries to where you are, we are in the UK and when we book to go to Ireland the company we book with insists on having our insurance details. Besides, as the first answerer says…they would be daft to travel without it as the cost of treatment is far more than the cost of the insurance. Accidents do happen…believe me, I broke an elbow last year, and a few weeks after that was healed I broke my foot…if I had been abroad I would have been in sh*t street without insurance!
genteel41
December 26th, 2009 @ 1:08 pm

There are some good travel insurance companies. Get ones that pay your expenses or pay you in cash. Dont get ones that make you take another trip or give you a voucher to travel again with them.
I only buy insurance if the trip is WAY more than I can afford to lose.
Read the fine print of the policies before you purchase.
Edward Appleby
December 26th, 2009 @ 8:44 pm

bor-scouts.com

The Advanture Vacation Guide

Why it Pays to Shop Around for Travel Insurance

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