Insurance news

Annual travel insurance ‘cheaper than single trip’

18 May, 2007

Those planning to holiday in Europe this summer are looking at an average insurance premium of £42.86 for a single trip lasting only a week, yet could net themselves an annual policy for just £113.86.

However not all annual premiums are this expensive and the site has found that some are as cheap as £35. This means that purchasing an extra 51 weeks cover can actually save holidaymakers money.

Single trip cover might start from as little as £10, but only nine per cent of these seemingly cheap policies are available to families travelling to Europe for less than £20.

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Sean Gardner, chief executive of MoneyExpert.com, said: “Holiday makers often think that single trip cover is simple and cheap, but the truth is it’s often not best value for money – you are certainly paying for a quick fix.

“As with all insurance, the quality of cover will always vary so like-for-like comparisons are quite difficult to make. Focusing on price alone can mean holidaymakers will be left with insurance that is not worth the price. Insurance policies are only tested when you need to make a claim – but you don’t want to find out when you are making a claim that you’ve saved money at your expense.”

MoneyExpert also point out that various considerations including online discounts and the quality and depth of cover should be factored in to your final decision. Only 12 per cent of all single trip policies offer a discount for booking online, compared to some 18 per cent of annual policies offering an online discount, which can be as much as 20 per cent of the premium.

The amount of emergency cash available, passport and lost luggage replacement are all further factors to consider.

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