25th September
Wednesday 27th September marks World Tourism Day, so we wanted to discuss with you what travel insurance is and why it is important to have travel insurance. Did you know that in 2022, travel insurance claims increased by 148%?!
What is Travel Insurance?
Travel insurance offers financial protection should anything go wrong whilst on holiday. It covers a range of issues, including:
• Lost or stolen luggage.
• Cost of medical care if you become ill or have an accident.
• Cancellations or holiday being cut short (for reasons out of your control).
• Disruptions including delays.
• Legal costs.
Not everything is covered by travel insurance, so you need to make sure you select the right level of cover for yourself and the holiday you plan to take.
The Importance of Travel Insurance
The Association of British Insurers (ABI) published data this year on last year’s claims, which highlighted why travel insurance is important. Every two minutes an insurer handled a claim in 2022, the amount of claims handled was up by 148% in 2021. Also, payouts rose from the previous year in 2021, claims payouts were around £107 million, but this rose by 230% to £352 million in 2022. Claims likely increased from 2021 as more people were travelling as covid restrictions have eased, however that does not cancel out just how important travel insurance is. As without this financial protection travellers in 2022 would have been out of pocket by an estimated £352 million.
The average travel insurance claim for a claimant was £973, this is not only a 33% increase, but also the highest average on record since ABI started collecting data in 2004.
Here are some travel insurance claims that were mentioned by the ABI:
• “A traveller visiting Thailand suffered a serious blood infection needing intensive medical treatment and an air ambulance back to the UK. The total bill was £250,000 paid by the travel insurer.” (ABI, 2023)
• “A holidaymaker in Spain needed private medical treatment for a kidney infection. This cost £15,000, covered by her travel insurance.” (ABI, 2023)
Tips When Taking Out Travel Insurance
• Check that is it safe to travel to your holiday location, as travelling against the Foreign, Commonwealth and Development Office (FCDO) advice could invalidate your insurance. Also follow any local health advice given to you by the local authorities.
• When applying for cover, be honest about pre-existing medical conditions and medication you may take.
• Understand your policy by reading what you are covered for, limits and exclusions.
• When traveling in Europe, it is beneficial to have a EHIC or GHIC card as it entitles you to access to state-provided health care, this is not a replacement for travel insurance.
• Understand your rights when facing travel problems.
We’ve got you covered for your travel insurance needs, use the discount code OC10* to save 10% on your travel insurance Today!
Written by: Amy Johnson
*Terms and conditions apply
**Please note that the above information has been gathered through secondary research. The information provided is not based on our opinion. You should seek further guidance and information before making an informed decision.
Sources:
https://www.moneyhelper.org.uk/en/everyday-money/insurance/what-is-travel-insurance https://www.justtravelcover.com/blog/can-you-afford-not-to-take-travel-insurance/
https://www.abi.org.uk/news/news-articles/2023/7/pack-your-travel-insurance-this-summer-and-remember-your-trip-for-the-right-reasons/
