Defaqto is reporting that some policies charge too little to be able to pay out. Consumers buying travel insurance have been warned not to base their decision just on the cost of the policy in a report published this week by Defaqto, the leading financial research company. The report ‘Travel Insurance in theUK – Cheaper is rarely better’, reveals that some policies are now “too cheap” to be able to offer adequate cover. Analysis of Defaqto’s Aequos database of 986 travel insurance policies found that there are 30 separate single trip policies that charge £10 or less for a week’s travel toEurope, with one quoting £5.49 per person. It urges consumers buying cheap policies to consider whether their insurer would be able to pay any claim made. Consumers should be purchasing quality travel insurance from a reputable source. Defaqto believes the UK Government and the insurance industry need to do more to educate consumers about the risks of travelling overseas without adequate cover. It estimates that around 10 million overseas visits are uninsured each year for a number of reasons including ignorance, unwillingness, or because travellers are ‘uninsurable’ due to their medical history. The familiarity of increased foreign travel is breeding contempt among many travellers who believe that travel insurance is unnecessary. It is believed that many travelers are under the wrong impression that a European Health Insurance Certificate (EHIC) removes the need for travel insurance, says Defaqto. This is probably the same situation in Canada and the United States where travelers may think their government or domestic health plans will cover their emergency medical insurance and evacuation needs. The report author and Defaqto’s Head of Insight,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 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. “The insurance industry and the Government must to do more to ensure that all consumers are aware that when it comes to travel insurance, cheapest is not always best. Two key areas of particular concern are that consumers do not understand how baggage cover works and we believe that there needs to be more clarity with regards to insurers requiring original receipts for even minor claims” For quality travel insurance plans to meet almost any budget, consumers should check out TFG Global Travel Insurance at http://www.globaltravelinsurance.com/
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