Cheap insurance not worth it


A new study has revealed that many British travellers are not placing claims with their travel insurance providers, even when they are justified in doing so.

Statistics released from the Post Office shows that large numbers of travellers with valid claims are not filing for compensation with their insurance providers. As many as 70% of those who experienced mishaps overseas and held travel insurance did not make a claim. According to the report, these unfilled claims could be worth as much as £13.5 billion in total.

Helen Warburton the head of travel services for the Post Office said: Travel insurance is designed to protect you should something go wrong. And if something goes wrong and your policy covers that scenario, you should make a claim.

One of the major reasons why travellers failed to claim, even when they were entitled to do so, were the high excess charges of many insurance policies.

Holidaymakers really must wake up to cheap policies with very high excess levels. They may seem like a great deal at the time but if an excess is set at £250, it may make little or no financial sense to try and claim for things like lost luggage, flight delays, doctor's expenses, lost cameras and more, says Ms Warburton.

Only one in eight travellers were unaware that their circumstances warranted a claim on their single trip travel insurance while far more (23 per cent) just wanted to avoid the hassle involved in filing a claim.

There are a wide variety of travel insurance policies available on the market. Often the cheapest policies seem like a good deal at the time, but fail to provide adequate cover after the high excess has been paid. Policies like these are largely behind many traveller's reluctance to file claims at all, even when they are entitled to.

Ultimately, said Ms Warburton, that means that you end up paying twice; once for the policy and then again for anything that goes wrong.

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Jennifer Jones Editorial


06/11/2007


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