You are here: Home - Insurance - News -

LV= stops selling travel insurance as others tweak terms over coronavirus

Written by:
LV= has paused the sale of all new travel insurance policies to customers in the wake of the coronavirus threat.

The insurer said it made the “difficult decision” after considering a number of different options such as excluding cover or significantly increasing prices for new customers.

However, it confirms there’s no change for existing customers who already hold a policy with LV=. These customers can continue to contact the insurer and make a claim if necessary. They will also be able to renew policies with LV=.

A statement on the website read: “We strongly believe this temporary measure of pausing the sale of new policies and focusing on our existing customers is the right decision.

“We remain committed to the travel insurance market and this is only a temporary move given the exceptional circumstances. We will continue to monitor the situation closely.”

What are other travel insurers doing?

It appears AA Insurance has stopped providing travel insurance quotes for trips to France, Italy and Spain as the destinations are no longer listed on its European destinations list for holidaymakers to buy cover for, according to business information site Defaqto.

But the insurer states it will allow any travel insurance policy to cover cancellation for any trips due to depart on or before 30 April, where there is official advice not to travel (typically excludes bronze travel products).

Insure and Go has amended its policies (as of 12 March) to exclude all claims – cancellation, medical costs, repatriation etc – relating to Covid-19 (coronavirus) and SARS.

And earlier this week Aviva removed its optional ‘catastrophe cover’ which would protect holders if the Foreign & Commonwealth Office (FCO) advised against travelling to an affected country.

Axa Insurance has updated its website FAQs to state that even if your policy doesn’t have ‘travel disruption cover, it will pay claims for cancellation if the FCO advises against travel to a precise location – for all trips due to depart on or before 30 April.

Brian Brown, consumer finance expert at Defaqto, said this is a great benefit to customers, when others in the market appear to be restricting cover.

“The travel insurance market is changing very quickly in response to coronavirus. We believe that the changes we are seeing are only the beginning, and it’s quite likely that over the next few days or weeks we will see other insurers follow suit.

“Our advice for people travelling this spring/summer is to check their existing policy NOW to make sure it covers them for cancellation due to FCO advice, and if they are not covered they should buy insurance from another insurer while they still can.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week