Staycation insurance sees sales boom
Comparethemarket.com has seen an 87% increase in sales of UK-based staycation insurance policies after Spain was kicked off the safe travel corridor list last month, meaning returning Brits would need to quarantine for a fortnight.
Since its exclusion, sales of travel insurance to Spain have plummeted to just 9%, the comparison site revealed. And when it comes to the US where coronavirus cases are climbing, just 0.3% of all purchases were made to the States.
The site’s analysis also revealed that Greece and France were the most popular destinations among those booking travel insurance, before France was added to the quarantine list.
Overall, since travel restrictions eased in early July, sales of international travel insurance have steadily increased by 18% to date, it added.
‘Travellers exercising caution’
Patrick Ikhena, head of travel at comparethemarket.com, said: “Despite the challenges facing holidaymakers and last minute additions to the quarantine list, there is still demand for foreign holidays.
“Since restrictions eased in early July, we have seen sales of foreign travel insurance policies steadily increase as many people look to get away after months of lockdown. The government has reiterated that no travel is currently ‘risk-free’ and that travellers must accept that their plans could be changed at the eleventh hour due to restrictions changing – as has proven to be the case with Spain, France, Malta and the Netherlands, to name a few.
“Many travellers appear to be exercising caution and opting for a staycation. Our data reveals a sharp spike in purchases of domestic travel insurance, compared to an expected fall in sales of policies to Spain, and almost no policies for the US.”
Ikhena added regardless of where people now choose to travel, it’s important to take out the most comprehensive cover available.
“Many providers have begun to offer ‘enhanced Covid-cover’ to give passengers additional cover and peace of mind before travelling abroad. While these policies are unlikely to cover you or your travel companions if you travel to a region against FCO advice, this type of cover is likely to pay out for cancellation should you contract Covid-19 before travelling. Such enhanced coverage is also likely to protect you in the event that FCO advice prevents you from going away, as well as any emergency medical care and repatriation costs,” he said.
Traditional travel insurance policies should still cover lost or stolen luggage, so holidaymakers should still buy this cover.
Ikhena said: “As guidance changes rapidly, prospective holidaymakers should thoroughly check FCO guidance and any local restrictions before travelling to avoid falling foul of fines and cancellations.”
Related: See YourMoney.com’s Is it worth buying travel insurance for a ‘staycation’? for more information.