News7 mins ago
Is it true that the cost of travel insurance is set to rise dramatically in the coming months
00:00 Mon 01st Apr 2002 | Travel
A. I don't know about the next few months, but I think you are referring to news coverage on the findings of a new report just published by Mintel (a market research company) which predicts that the cost of travel insurance is set to soar over the next four years. It believes that the value of the travel insurance market will grow from �575 million in 2002 to �898 million in 2006 - as a direct result of a rise in insurance premiums.
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Q. Why will the rise take place
A. It is believed that insurance premiums are set to rise as a result of September 11 and the effect it has had on the travel industry - already many travel insurance companies have folded, and as a result of this there is less competition in the market, and a highly competitive marketplace is what has been keeping insurance premiums low for so long.
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Q. How many people actually buy travel insurance in the UK
A. According to the Mintel report, 18 million holidaymakers buy travel insurance - but they usually don’t shop around for the best deal, 34% prefer to buy their insurance at the same time as purchasing their holiday even though travel agents charge higher premiums.
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Q. Is it worth shopping around and if so can I do this on the Internet
A. It is definitely worth shopping around as you can get a really good deal on what you actually pay, it is approximately 35% cheaper to buy your travel insurance on the Internet than it is to buy it directly from your travel agent.
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There are lots of companies offering Internet-only insurance deals. In trying to find the cheapest insurance provider on the Internet I wanted to be insured for two weeks in Europe at high season (1-15 July 2002) - all quotes listed below are based on two adults travelling together at this time.
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Some of the best (and cheapest) that are worth checking out include the following:
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This website is incredibly fast - providing a basic quote in about 10 seconds - and easy to use. It offers single trip, annual multi-trip insurance quotes as well as insurance cover in other areas such as household and car insurance. Although it claims to offer the "best holiday insurance quotes on the Internet" is does not provide the cheapest deal - however, its quote for 14 days in Europe in high season came to �30.00, which is very competitive. All its rates include free insurance for any children under the age of 2, and all claims are subject to a �35 excess fee.
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Insurance policies booked on Holiday Insurance Online are arranged by G. J. Sladdin & Co Ltd (registered insurance brokers), with the single trip policy being underwritten by the New Hampshire Insurance Company (a member of the AIG Group, one of the world's largest insurers).
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This site is also easy to use and quoted �29.12 to insure for two weeks in Europe for two adults. Its quotes only apply to UK residents. You can pay online with any credit card on its secure server (it uses a secure socket layer or SSL server which allows for any information transmitted to be encrypted making it more secure) or telephone 0870 152 5840 if you don't like giving out any personal information via the Internet.
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This online venture offers value for money and came up with the cheapest insurance quote for two weeks in Europe at �26.98 for two adults, for two weeks. Travel insurance is provided by Gosure.com, a division of the Columbus Insurance Group, and a specialist in providing Internet insurance. All policies are underwritten by Royal & Sun Alliance.
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This site offers single and multi trip policies in addition to its special "Back Packers" policy, which is valid for anything up to 18 months. If you wish to speak to an advisor about your travel insurance policy, you can speak with a telephone representative (instead of doing everything online) on 020 7 581 4733.
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This site is really easy to use and offers a variety of insurance policies at competitive prices. Go Travel also offers a 14-day money back guarantee if you cancel your holiday - and all policies feature a 24-hour back-up service and legal helplines should you need them at any time. It offers single trip, winter sports, annual multi-trip and back packers/long stay insurance cover. Its quote for insurance cover for two weeks in Europe came in at �29.98. Telephone enquiries: 0870 152 5840.
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This website is incredibly fast to use and offers instant cover, email insurance certificates, 24-hour medical support and a 14-day money back guarantee if you cancel your holiday. In addition, children under 2 are insured for free when travelling with an adult and it offers free adventure sports coverage. Insurance is provided by Select Insurance Intermediaries, owned by Churchill.
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Select are the company behind a wide range of travel insurance products offered by such companies as CGU, Asda, Boots, BBC, Churchill Insurance, Unijet and First Choice Holidays amongst others. Its insurance quote for two weeks in Europe came in at �28.
Telephone bookings: 0800 027 3113.
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If you have any other Travel related questions, please click here
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By Karen Anderson
