Travellers urged to research travel insurance options

With summer holidays around the corner and families itching to jet off, moneysupermarket.com is urging travellers to research must-have travel insurance options and not to overlook low cost options.

Despite costing more than double, policies from big brand insurers provide similar, if not lower levels of travel cover, according to research from price comparison website moneysupermarket.com. For example, a policy for a couple aged 30 for a single trip to Florida will cost £28.50 from Flexicover Direct, supermarket giant Tesco comes in 133 per cent more at £66.49, and travel agent Thomas Cook four times more at £114.

Travel insurance for a family of four, for a single trip to Majorca, is subject to similar price hikes. Cover is £14.20 from Flexicover Direct, more than triple with Tesco at £47.49, and almost six times more at £81.96 from Thomas Cook.

Richard Mason, director of insurance at moneysupermarket.com, said: “Little known travel insurers provide good levels of cover at a lower cost compared with the big brands. It’s encouraging for travellers to know there are low cost options on the market providing high levels of cover for their needs. With low-cost options it is not always a case of ‘you get what you pay for’.

“I urge customers to compare policies on a like for like basis and check levels of cover are sufficient for you and your family's needs. If a low cost option is ample, why not put the money you save towards an extra activity or slap up meal while you're away?”

Last week, the FSA announced the sale of all travel insurance, including policies sold through a travel agent when purchasing a holiday, will be regulated from 2009.

Richard Mason said: “While it is unfortunate we have to wait another 19 months for this to come into effect, this is positive news for the travel insurance industry and consumers. In the past, through travel agents in particular, consumers have purchased policies without checking the levels of cover, or their eligibility. If for example, a holiday maker has not disclosed a pre-existing medical condition, they may be rendered ineligible if making a claim. My advice is to research the level of cover you need and take proper advice if necessary; then shop around for a competitively priced policy.”