Holidaymakers have been warned that some travel insurance policies may cost very cheap but they should not be fooled by this.
Defaqto, an independent financial research company, discovered 30 separate single trip policies charging 10 pounds or less for one week of travel to Europe, with one charging only 5.49 pounds for each person.
In its report entitled, ‘Travel Insurance in the UK – Cheaper is rarely’, which is based on the 986 travel insurance policies’ analysis, Defaqto warns travellers to be aware of buying insurance based on the price alone.
“The insurance industry and the government must to do more to ensure that all consumers are aware that when it comes to travel insurance, cheapest is not always best,” said Brian Brown, the report’s author and head of insight of Defaqto.
According to him, areas of such concern included the lack of understanding on how the baggage cover works as well as a requirement for the insurers to get original receipts even for minor claims.
“Consumers are being let down by the insurance industry which has made travel insurance policies jargon-heavy to the point that the only thing they can easily compare is price,” Brown added.
“This, compounded with increased competition, means that too many people are now travelling abroad with inadequate cover.”
“With the continued growth of overseas travel to increasingly exotic places, more people are likely to end up on the wrong side of an insurance claim.”
Based on the estimates of Defaqto, about 10 million overseas visits each year are uninsured.
Defaqto believes that lots of holidaymakers mistakenly believe that European health insurance certificate takes away the need for travel insurance.