Need to know
Travel insurance experts have warned holidaymakers to check the terms of their policies as some of the fine print could cost you hundreds more than you expected if you need to claim
Buying the cheapest travel insurance policy could lead to problems when you make a claim(Image: Getty Images)
- Many Brits use comparison sites and simply pick the cheapest travel insurance when they have a trip away. However, Defaqto , who rate financial products such as insurance, has warned holidaymakers of a growing number of annual policies changing the way they charge an excess.
- Some annual policies now charge the excess on a per person basis, rather than the overall claim, meaning you could pay more than you expect. For example, if you take out a policy with a £250 excess and claim as a couple, the first £500 of the claim would not be covered, and as a family of four this would go up to a whopping £1,000.
- An increasing number of policies also have a per person, per section rule, which can lead to travellers paying multiple excesses for a single claim. For example, if you have an excess of £50 and two of you claim for lost luggage and also for some stolen cash, this would mean four separate excesses would be applied, bumping it to £200.
- The number of policies offering a zero excess is also on the rise. While these can be more expensive to take out, you can be assured you’ll get the full cost of your claim if approved.
- Higher excesses can make the initial cost of travel insurance cheaper, making them attractive to holidaymakers on a budget, but it’s worth considering how much you could potentially miss out on if you make a claim.
- Defaqto also advised Brits to make sure they take out the right insurance if planning activities like risky sports, skiing, or even going on a cruise. It also suggested checking whether you already have an annual travel insurance policy through a bank or credit card, as some financial providers offer policies as a perk with accounts.
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