Travel Insurance Guide Blog

Are your belongings properly covered?

Sat, 26 Mar 2011 15:46:38 GMT

With Easter coming up, followed by an extra long Bank Holiday weekend courtesy of the Royal wedding, many of us are busy planning an extended get-away using minimal annual leave. However, how many of us have given the same thought to our travel insurance policies?

With many of us taking more and more expensive gadgets away with us, appropriate cover for our personal possessions is more important than ever.

A cursory glance at the policy may lead you to believe that you are well covered; indeed over 80% of policies now offer cover of up to £1,000. However, a more careful look through the small print will reveal that only 11% offer cover of over £350 for a single item and only 14% offer £500 or more in terms of cover for 'valuables'. The precise definition of the word 'valuables' varies from policy to policy but can include iPods, mobile phones, jewellery, cameras and camcorders.

With so many price comparison websites available nowadays, it is relatively easy to find a good deal in terms of price but it can also be pretty confusing trying to compare like for like. Everyone’s requirements are different and no-one likes having to pay for levels of cover which are far too high for their needs. On the other hand no-one wants to be caught out, discovering too late that that Rolex or fancy phone is only covered up to a couple of hundred pounds.

This is where financial research company Defaqto can help. They have introduced a new Star Ratings system designed to help people see at a glance what they are buying and how comprehensive a policy is. For more details have a look at their website.

Government to expand Atol travel insurance scheme

Thu, 10 Mar 2011 15:45:28 GMT

Following the problems with a number of large tour operators going bust in recent years, the government has now announced its plans to expand the Atol (Air Travel Organisers’ Licensing) scheme.

This scheme was created to provide protection and financial cover for travellers when they purchase a package holiday and the tour operator goes bust. This can leave them out of pocket if they have not yet gone on holiday, or stranded abroad if they are already at their destination, and the scheme provides cover for both situations.

The scheme has been hit hard over recent years with the collapse of a number of large tour operators. As such, the government has had to support it with £42 million. It is now hoping to expand the scheme to provide better protection for travellers.

The new plans will cover ‘flight plus’ holidays where hotels and flights are booked within a short space of time but are not part of a package deal. However, holidaymakers who book hotels and flights from different operators will still not be able to get financial protection from the scheme.

The changes will make it compulsory for travel agents to inform customers if the holiday is not protected by Atol. A new certificate will also be brought in that will clearly state when holidays are protected, making things easier for travellers.

Last year the scheme was responsible for repatriating 43,637 people, and a further 132,820 holidaymakers were refunded when their tour operators went into administration.

The changes, which might come in as early as the end of the year, could see six million extra holidays being protected. However, larger operators have said that more needs to be done to include flight-only deals.

Travellers warned about trips to North Africa and Middle East

Wed, 02 Mar 2011 13:07:01 GMT

In the wake of the recent uprisings in Tunisia, Egypt and Libya, as well as other countries across North Africa and the Middle East, EssentialTravel.co.uk has issued a warning to travellers regarding the validity of their travel insurance policies.

As well as the obvious danger that comes from visiting volatile countries in the region at this time, travellers must also remember that if the Foreign Office has advised against travel to a country then this will affect travel insurance claims.

If you buy your insurance and travel to the region before an official announcement has been made then you will still be covered by your insurer. However, if the government has issued travel advice stating that it does not recommend travel to a country and you still choose to travel, you should be prepared for the fact that your travel insurance is unlikely to cover you for any claims.

Stuart Bensusan from EssentialTravel.co.uk said that consumers should “listen and adhere to the advice given by the Foreign Office” because they won’t be covered by travel insurance if an area is deemed unsafe.

If you are planning to travel to any country that could be considered volatile then the best advice is to check out the Foreign Office website regularly and watch for any announcements. You can also sign up to receive emails for your country of travel so that you will receive notification if any announcements are made.

Whereas the dangers of travel to some countries, such as Libya, will be self evident, other countries which appear to be safe may also come with risks. The last thing you want is to end up in a dangerous country without any travel insurance cover, so make sure you check with the Foreign Office website before you travel, and if in any doubt contact your travel insurance provider to see if you will be covered.

19% of travellers don't take out insurance

Sat, 19 Feb 2011 15:44:06 GMT

ABTA (Association of British Travel Agents) has released its latest Consumer Trends research, which has revealed some rather worrying figures about the public’s attitudes towards travel insurance.

The main findings of the research were that 19% of travellers from the UK don’t take out travel insurance when heading abroad, and that a further 17% say that they think it is ‘not important’.

This is cause for alarm. Travel insurance is without a doubt the most essential item on the holiday list, and without it travellers are putting themselves at enormous risk when travelling to any foreign country.

The biggest threat comes from unexpected medical bills. Amazingly, 16% of those questioned thought that the government would pay their medical bills if they fell ill on holiday. The reality is that the government will not offer any financial help, and medical bills can quickly reach thousands of pounds for even relatively minor hospital admissions, let alone more serious problems.

Travel insurance may be yet another added expense, but at just a few pounds it provides travellers with complete peace of mind and could prevent the holiday from becoming a lot more expensive should anything go wrong.

It’s not just medical bills that can be pricey. Cancellation costs, lost valuables and missed flights can all potentially ruin a holiday, so it always pays to be covered.

The research also revealed that 55% of people don’t purchase insurance for UK holidays. Although the financial risks of medical costs are not a problem in this situation, there are still plenty of reasons to take out travel insurance when on holiday in the UK. Cancellation costs, delays, lost luggage and many other factors can all pose a financial burden, so travel insurance is always recommended wherever the destination.

Surge in people booking holiday homes

Mon, 31 Jan 2011 13:05:47 GMT

The bitterly cold weather, the snow, the constant transport problems and the endlessly grey skies make for a typical winter in the UK. But it seems that Brits have had just about enough of it now and are booking winter getaways in their droves.

That was the suggestion from the recent survey from Sainsbury’s Travel Insurance which revealed that huge numbers of people are now planning to book holiday homes in countries all over the world in the coming months.

After carrying out a poll of 1,036 people, Sainsbury’s revealed that from now until the end of February up to 35% of people in the UK are planning a break, which will mean bookings will be 50% up compared to the first two months of the previous year.

Of the favoured destinations, 45% of those planning to book a holiday are going to go to Europe, 6% to the USA and 29% to somewhere in the UK.

Of the locations where people are most keen to escape, London came top with a massive 41% of the people living there saying they were planning a holiday. Other areas where lots of people were planning breaks included the South East and East Anglia, where 39% of people said they were thinking of booking a holiday.

But despite this large increase on last year in people going away on a winter break, the average amount that people are prepared to spend has gone down by 1% to £826, which is 6% less than two years ago.

Post Office freezes travel insurance policy prices

Thu, 27 Jan 2011 12:17:47 GMT

This year's traditional January blues seem to have hit many Brits even harder than usual, what with the rise in VAT coming into play to hit the pockets of already cash-strapped consumers. With prices on the up for goods regarded by the majority of consumers as essential, it's easy to see why other apparently non-essential goods and services are being overlooked in some cases.

Travel insurance is one such service, with many people opting to risk going abroad without taking out a policy simply because they believe the financial gamble is a worthwhile one.

The fact of the matter is, however, that such decisions can backfire drastically, leaving not only your pockets at risk of a hammering, but also leaving your health at risk in certain situations. It is, therefore, reassuring to know that one travel insurance provider has taken a step towards combating the problem by freezing the price of both its single trip and annual policies.

The prices have been frozen until the March 27 by Post Office Travel Insurance, with the VAT increase and rise in Insurance Premium Tax ignored by the supplier.

This means that if you're planning a trip abroad in the coming year you have an additional few months in which to purchase a policy at pre-tax increase prices.

Even if you're not looking to foreign shores for a break this year but might do next year, bear in mind that you can buy a single trip policy up to two years in advance of your travel date.