The consumer champion found that travel insurance policies are riddled with “confusing exclusions and ambiguous terms” – to the extent that customer service advisers at major insurers are struggling to explain to customers what is and isn’t covered.
Which? recruited a small panel of volunteers to look through insurance policy documents from three big-name brands: M&S Bank, Tesco Insurance and Virgin Money.
The volunteers then told Which? whether they thought they would be covered for a series of holiday mishaps, ranging from missed flights and medical emergencies to stolen gadgets and natural disasters.
The panel, which included people of all different education levels and ages, mostly said they found the three policies ‘fairly understandable’. The problem, however, was that for some questions, nearly everyone who answered the questions had misunderstood the policy and got the answers wrong.
As well as the panel of volunteers, Which? also mystery shopped the insurance firms’ customer helplines but found advisers were often equally confused and got some of the answers wrong.
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Confusing exclusions
Out of the nine scenarios, the volunteers got 55% of the questions right for M&S, compared with 57% for Virgin and 69% for Tesco.
One of the scenarios volunteers were asked about was whether the travel policy would pay for a new flight if a flight delay had led to a missed connecting flight. None of the volunteers realised they would not be covered with Virgin, but all six correctly assumed they would be with Tesco and M&S.
Another scenario the panel were asked about was whether medical expenses are covered should you twist your ankle after drinking three pints of beer. Five of the six of Which?’s volunteers incorrectly thought they would be turned down by Virgin, while three of the six got it right for Tesco, and two for M&S.
Which? also asked about cover for a new hotel and early flights home if a forest fire breaks out near the policyholder’s villa. Almost all of the volunteers thought they would get their money back – however, this would not be the case if they were insured by Tesco or Virgin. Five out of six got it right for M&S – the only insurer out of the three that would cover travellers in this event.
When it came to cover for stolen property, all three insurers included in Which?’s study would reimburse a customer for an expensive new iPad taken from their bag on the bus, but not if it was in a suitcase or left in a hotel room. For Tesco and Virgin, the whole panel got this right, compared with only half of the M&S volunteers.
The other scenarios that the volunteers were asked about were seeing a doctor and incurring medical costs, stolen cash from an Airbnb, a family illness meaning you have to cancel your flight and contracting Covid when away.
Advisers ‘don’t know’ some answers
When Which? phoned up the insurers’ helplines, the advisers were often as confused as the volunteers.
Tesco staff got the answer about the iPad wrong and answered ‘don’t know’ in three other scenarios that Which? presented.
When Which? spoke to M&S, staff said ‘don’t know’ twice and were stricter on alcohol, telling researchers they would not be covered for a fall after three pints.
Virgin’s team did not give Which? any ‘don’t know’s, but incorrectly told the consumer champion that they wouldn’t be covered for the stolen iPad or for cancelling their trip due to a family illness.
M&S is the ‘clear winner’
Which? said the most important thing when choosing travel insurance is how much the policy covers. On this basis, M&S was the clear winner, covering seven out of nine scenarios put to it.
Tesco Insurance would cover six out of nine and Virgin Money just three. However when Which? contacted Tesco Insurance about a clause in its policy excluding cover for Covid treatment for customers who’d skipped the most recent NHS vaccination, it said it was removing this exclusion.
All three insurers said they would consider Which?’s feedback when reviewing their travel policies.
Rory Boland, editor of Which? Travel, said: “If you miss a connecting flight or have a medical emergency, having the right insurance is crucial. Our research shows how difficult it can be knowing what you are covered for and it seems that the providers aren’t even sure themselves.
“Insurance should be a safety net but travellers have no chance of knowing where they stand if the policies are not simple to understand. Insurance companies need to ensure that their terms and conditions are clear to avoid any further confusion. The insurance industry must also do more to properly train customer service staff.”
