Avoiding the insurance trap could save you money

UK holiday makers now take on average two foreign holidays a year, but 50% still buy single trip policies.

With temperatures on the up and the holiday season just round the corner, Halifax Travel Insurance is reminding holiday makers to think ahead when buying their travel insurance this year. According to the latest research, single trip policies still account for over 50% of all travel policy sales, leaving many people out of pocket or without the necessary cover if they take more than one holiday in the same year.

Alarmingly, 13% of travellers still venture abroad without taking out the necessary cover, with 16-24 years olds being the most likely to take their chances. Contrary to popular belief, the general price difference between a single trip policy and an annual trip policy can be very small. In fact, for some foreign holidays, it works out cheaper to get an annual trip policy than a single trip policy.

Cheap air travel and the decline of the traditional package holiday have contributed to the increasing popularity of short European breaks. Between 2000 and 2005, the number of short breaks rose from 4.2 million to 7.4 million trips and now constitutes 17% of the entire overseas holiday market in the UK. There is a feeling however, that many people traveling to Europe for a short break may not always see the need for insurance.

Many are unaware that Halifax Annual Travel Insurance will also cover trips within the UK when you have pre-booked accommodation for at least three days. UK residents took an estimated 87 million holiday trips in the UK in 2005, representing 305 million bed nights and £15 billion in spending. UK holidays of 3+ nights accounted for over half (56%) of all holiday trips.

Halifax Travel Insurance Underwriting Manager, Paul Birkhead explains: "Statistics show the majority of travel insurance policies are usually arranged between April and September, which is why Halifax Travel Insurance is bringing this issue to the attention of our customers now."

"The proliferation of low-cost, no frills airlines, has had a significant impact on our holiday-taking habits. More and more of us are taking short breaks to destinations in the UK, Europe and further a field, making annual travel insurance a more attractive proposition. With little difference in price and in some cases actually cheaper, it makes sense to avoid falling into the insurance trap by taking annual cover."

"The main benefit of annual cover is that you only need to take out your policy once a year to be insured for as many trips as you like, within a 12 month period, both within the UK and abroad.

Many people are also unaware that annual cover will also include trips in the UK, so long as they are in pre-booked accommodation for at least 3 days."

When taking out cover, Halifax Travel Insurance recommends considering the following:

Is this the only trip you will be taking this year (UK or abroad)?
Does the level of cover meet all your requirements?
Have you declared any pre-existing medical conditions?
Have you checked for any exclusions?
Will you be partaking in any hazardous activity and does the policy provide cover?
Are you covered for personal belongings?