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Holidaymakers warned about high excess levels

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Holidaymakers who claim on their travel policies this year could pay the price of sharply rising excess levels.

Holidaymakers who claim on their travel policies this year could pay the price of sharply rising excess levels.

According to research carried out by, some excess levels are now so high that is it scarcely worth paying for the policy. I

It calculated that the cheapest cover for a single trip to the US for a family of four available from Travel Insurance Web, with a £28.06 premium, charges an excess of £200 on holiday cancellation but only has a maximum payout of £500. Baggage loss had a claim ceiling of £500 but a hefty excess of £200.

Whereas, the only slightly more expensive Virgin Money policy, with a premium of £32.98 pays out £3,000 on cancellation and £1,500 for baggage loss, but with an excess of just £100 on both.

This trend for cheaper policies coming with much higher excesses is repeated for destinations closer to the UK.

For example the premium for OUL Bronze’s single trip policy for a family of four going to Spain is just £9.38, but medical, cancellation and baggage cover all comes with an excess of £250. With a premium £1.60 more, Debenhams Essentials has much greater cover, with an excess of just £100.

Moneysupermarket found that some of the lower excess levels and lower premiums are to be found on travel insurance policies which make up part of packaged current accounts.

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