Britons confused about insurance coverage

A recent survey conducted by MoneyExpert.com reveals that many people don’t know exactly what their insurance policy covers, meaning that they could be paying for things they don’t need or be under insured for their requirements or be missing out entirely on making legitimate claims.

The company surveyed 2,082 adults and found that 12 per cent did not know the terms of their travel insurance policies. They were unsure if they were covered in the case of a lost passport and they could not say the extent of their medical cover.

The survey found that as many as 34 per cent of people are not making claims when they could be, particularly in the case of delayed and cancelled flights, trains and ferry crossings. Believing they are not covered for these events, when indeed, they are, means that they are missing out on compensation they paid for.

In fact, the large majority (97 per cent) of all travel insurance policies offer some degree of protection against cancellation.

MoneyExpert’s Sean Gardner said: "With people traveling to increasingly exotic destinations and keen to do ever more adventurous activities while abroad, it’s a worry many don’t understand what they’ll be covered for.”

Conversely, many people assume they have coverage when they don’t. This is certainly the case for those participating in risky activities.

"Obviously a white water rafting holiday poses more of a risk than a beach holiday in Spain so it’s vital that people consider exactly what activities they’re going to be doing, and then choose their policy accordingly. If they don't they risk a serious pay out should something go wrong,” Gardner explained.