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Travel Insurance Is Getting Cheaper

By Szu Ping Chan

This article was originally sent to Fools as part of our 'Summer Lolly' email series. 

With the sun preparing to get its hat on for the holiday season, many of us will soon be off on our summer adventures.

And, boring as it may be, it's also a time when we should be thinking about shopping for travel insurance.

The good news is, travel insurance is getting cheaper. According to financial research company Defaqto, many policies have come down in price since last year, mainly thanks to increasing competition.

For example, average premiums for a single, 17 day family trip to Europe have decreased by 7%. When it comes to annual cover, similar savings are to be had. A single person, buying annual European cover would save around 6.7% on their premiums compared to last year.

But as well as looking at price and level of cover, one of the questions you should ask yourself when choosing your insurance policy is whether you'd be better off with a single trip or annual policy.

Using our own travel insurance search engine, here's a quick comparison of travel insurance quotes for an individual travelling to Europe on a single trip policy (7 days) versus an annual one.

Insurer Single Trip Policy Annual Policy
Travel Insurance Web Standard £7.75 £23.99
JS Elect Gold £9.98 £39
AXA Superplus £11.33 £31.97
Insure and Go Silver £13.09 £39

Insurer Single Trip Policy Annual Policy
Travel Insurance Web Standard £33.50 £58.99
JS Elect Gold £52.05 £99
Insure And Go Silver £49.00 £88.69
AXA Superplus/Annual £45.62 £109
Insurer Policy name Maximum days per trip (annual policy) Maximum age of children under a family policy Free children covered under a sole adult policy
Insurefor.com Premier 31 days 18 Up to four
Travel Insurance Web Standard Policy 31days Under 23 years and in full time education* n/a
JS Insurance (policies underwritten by Elect and AXA) Elect Annual Gold/ AXA Annual Elect Annual Gold 45 days. AXA Annual 31 days Under 23 years and in full time education for AXA policy. Elect policies cover children up to 18 years. Specific quote needed
Insure and Go Annual Family Silver 45 days 18

Up to three

The table shows that some policies even cover children aged between 18 - 23, providing they are still in full-time education and travel with the main policy holders.

Coupling Up

One point worth noting is that if you and your partner want to take out couples' travel insurance, bear in mind that most insurers define a couple' as two people living at the same address. Some even specify that you have to be living together for more than six months, so check where you stand before parting with any money.

EHI Free

Finally, if you're planning to venture into Europe, don't forget to sign up for your free European Health Insurance Card (EHIC).

The card is valid for three years, and entitles you to free or reduced cost medical treatment while travelling to any country in the European Union, Iceland, Liechtenstein and Norway.

You can apply for an EHIC online, by phone or by post, and although it is by no means a replacement for comprehensive travel insurance, having one may prevent you from paying excess fees to your insurer in the event that you need to claim.

So, with this in mind, happy bargain hunting. And more importantly, happy travelling!

Find a competitive travel insurance quote online with the Motley Fool

*All policies quoted meet our recommended minimum level of cover while you're away.


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Copyright © 2008 Fool.co.uk - Insurance Team. All rights reserved.


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