Travel insurance ‘too cheap’ to be any good in case of trouble
Travellers who compare travel insurance have been warned not to base their decision to purchase on the cost of the policy as this may not be the best way to get good cover, warned financial data company Defaqto.
Some policies are now “too cheap” to be able to offer adequate cover, with one quoting just £5.49 for a week in Europe.
Defaqto believes the Government and insurance business need to do more to educate consumers about the risk of travelling overseas without adequate cover. It estimates that around 10 million overseas visits are uninsured each year due to reasons including ignorance, unwillingness or because people are ‘uninsurable’ due to medical reasons.
The report’s author and head of insight at Defaqto, Brian Brown, said: “Consumers are being let down by the insurance industry which has made travel insurance policies jargon-heavy to the point that the only thing they can easily compare is the price.
“This compounded with increased competition, means that too many people are now travelling abroad with inadequate cover. With the continued growth of overseas travel to increasingly exotic places, more people are likely to end up on the wrong side of an insurance claim.”
He added; “The Government and the insurance industry must do more to ensure that all consumers are aware that when it comes to travel insurance, cheapest is not always best.”