April 2006

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Insurer warns that Brits overpay in travel insurance cover

INSURER WARNS THAT BRITS OVERPAY IN TRAVEL COVER
- Brits are travelling abroad more often
- Yet 3 out of 4 people still buy single trip travel insurance
- MORE TH>N recommends annual travel insurance to save time and money
- Nearly half of all travel policies are taken with tour operators, costing consumers over £330 million

Leading insurer MORE TH>N is warning UK holiday-makers, who take over 60 million trips abroad each year1, that they could be overpaying for their travel insurance if they take out single policies for each trip, rather than considering an annual policy.

Industry figures show that while Brits are taking more trips away each year, almost three-quarters (73%) of all travel insurance policies sold are still for single trips2. Annual travel cover with MORE TH>N starts at just £41.503 – not much more than the cost of single cover for just two short trips within Europe4.

And while many travellers are already wasting money buying numerous single trip policies, they could be losing even more by purchasing their insurance through tour operators and travel agents rather than through cheaper direct providers who offer equally good cover. Currently nearly half (49%) of all travel policies taken out by British holiday-makers are bought from tour operators and travel agents, at a cost of over £330m each year5.

Graham Hollebon, head of product for MORE TH>N, commented: “Travel insurance can make an unfortunate situation more bearable – and a lot less stressful. Anyone planning more than two trips away each year should consider purchasing annual cover, which will save both time and money.”

Brits have long been active travellers, and with cut-price airfares and cheap deals on everything from hotels to posh restaurants being advertised every day, the ideal holiday is more affordable and available than ever. 2004 saw an increase of 4.4% in the number of trips taken abroad; long weekends and short breaks are especially popular, along with an increase in luxury and boutique holidays6.

Holiday-makers have also become increasingly confident about making their own travel arrangements, with a rise in ‘DIY holidays’. Yet this trend carries the risk that travellers forget one of the most important aspects in ensuring a holiday will run smoothly – travel insurance. While travel insurance cannot prevent problems arising, it can certainly reduce the impact of unfortunate events on your well-earned break away, not to mention potentially saving you a lot of money.

Graham Hollebon continued: “Every day we speak to people who would have been in a very tricky situation without travel insurance. It’s not pleasant to have to sleep in an airport if you miss your flight, wear the same clothes for three days while you wait for your bag to turn up, or worry about the increasingly expensive cost of treatment should you end up in a foreign hospital.”

As we enter the holiday season MORE TH>N is encouraging holiday-makers to remember their travel insurance before heading out the door, even for short or nearby breaks. And although the likelihood of a mishap increases on a trip abroad, travel insurance is still highly recommended for UK breaks as it can cover you for many things that your home insurance may not.

For more information on MORE TH>N travel insurance phone 0800 300 866 or visit www.morethan.com/travel.

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