Holiday warning for ANYONE going abroad that could cost you £466 extra
HOLIDAYMAKERS with pre-existing medical conditions could see their travel insurance premiums skyrocket, according to a new investigation.
Consumer watchdog Which? found that declaring a medical condition can significantly increase premiums, warning Brits to shop around so they don't pay over the odds.
Which?'s survey of over 9,000 members found that nearly three-quarters declared a medical condition when purchasing travel insurance.
Of those, 82% said it raised the price, and a quarter believed the increase was substantial.
Many described finding affordable premiums as "difficult" or even "almost impossible".
Data from comparison sites backs this up.
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Compare the Market found that single-trip policies cost twice as much for those declaring a condition (£33 on average) compared to those without (£16).
Similarly, GoCompare revealed that annual policies cost around £50 more when pre-existing medical conditions are disclosed.
To illustrate the issue, Which? gathered quotes for three individuals with type 2 diabetes, epilepsy, and bipolar and personality disorder.
In each case, the watchdog selected the cheapest European annual policy available with £5million medical cover, £2,000 cancellation cover, and £1,500 cover for baggage with gadget protection.
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In the case of the traveller with bipolar and personality disorder, all five specialist insurers were willing to provide cover, but only two of the regular insurers did - leaving just seven viable policies.
In the most extreme example, a traveller with bipolar and personality disorder saw their premium jump by a staggering 1,159%, rising from £38.48 to £484.52 after declaring their condition.
Which? also found a £531 difference between the cheapest and most expensive quotes for this individual, proving how vital it is to shop around.
While a specialist insurer was the cheapest option for the individual with bipolar and personality disorder, Which? found regular insurers were the more competitive options for the case studies with diabetes and epilepsy.
Declaring epilepsy led to an average increase in travel insurance premiums of 23%, with prices rising from £67 to £77.
However, quotes varied widely, ranging from as low as £52 to more than double that at £110.
For the individual with diabetes, the price increase was smaller, averaging just 6%, with premiums rising from £129 to £136.
Despite the smaller average rise, there were big differences in the quotes offered.
Non-specialist insurers provided premiums ranging from £76 at the lowest to £169 at the highest.
But, specialist insurers had a much higher starting price of £118, with quotes going up to £168.
What is travel insurance?
TRAVEL insurance is there to help you when something goes wrong with your holiday.
It can help cover your bills if your flights are cancelled, your luggage is lost, or you need medical help when travelling abroad.
The two main types of travel insurance are single and multi-trip cover.
There are also often separate packages available depending on where you're travelling to - for example if you're remaining in Europe compared to further afield.
In some circumstances you may need a specialist product for example if you'll be backpacking around multiple destinations, skiing, hiking, diving or going on a cruise.
If you're travelling on business, you'll also need to ensure your policy covers your trip.
A word of warning
Sam Richardson, deputy editor of Which? Money, said: "Travel insurance is an essential when going on holiday, but finding the best policy at the right price isn't always straightforward - especially if you have a pre-existing condition.
"Our research found significant disparities in price depending on the insurer, so it's vital that consumers shop around and compare as many policies as possible before making a decision.
"While comparison sites are a great starting point, these won't always include specialist providers - so it's essential to obtain these quotes separately before making a purchase.
"Though it may be tempting to omit a condition in order to get the price down, it's never worth the risk.
"Failing to declare something in advance could see your policy invalidated and in the worst cases, leave you with a bill in the thousands of pounds."
What should you look for in a good travel insurance policy?
TRAVEL insurance policies can vary a great deal, but here are some "must have
- Medical expenses - A good policy will give cover of £1million or more for travel in Europe and £2million or more for the USA
- Repatriation service - The costs of getting you back to the UK for medical reasons should be covered automatically by your policy
- Cancellation and curtailment - A good policy will cover you for £2,000 or more if you have to cancel or shorten your holiday
- Missed departure - Covers additional accommodation costs and travel expenses up to £500 or more if you miss your flight due to circumstances out of your control
- Delay - You'll usually be covered for £250 or more if your travel plans are delayed due to circumstances out of your control
- Baggage cover - Covers you if your baggage is lost, damaged or stolen. Look for policies that have cover of £1,500 or more.
How to get the best deal on travel insurance
Sorting your insurance as soon as you book your trip ensures you have comprehensive protection and peace of mind well in advance.
There’s no obligation to purchase travel insurance from your travel agent or holiday company, though they often offer it as part of your booking.
Banks, supermarkets, and insurance providers also offer travel cover, and using a comparison website can help you find the best deal tailored to your needs.
To get started, you'll need to provide details such as the names and ages of all travellers, your destination, and any pre-existing medical conditions.
Once you input this information, you can filter results based on the level of cover, the excess you're willing to pay, and the price.
While it’s tempting to choose the cheapest option, make sure to check the policy details carefully - lower-cost deals might not offer the protection you need.
You’ll also need to decide whether to opt for single-trip cover or annual multi-trip cover, depending on how often you travel.
If your requirements are more complex, consider working with a regulated insurance broker, which you can find via the British Insurance Brokers' Association.
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Finally, don’t forget to check your current account, as some banks offer complimentary travel insurance to their customers.
However, always review the details of what’s included to ensure the cover meets your needs.
