Older consumers struggling to get travel cover

A recent report has highlighted how difficult it can be for older consumers to find affordable travel insurance cover, with many finding the cost of this cover too high to afford. Many older people aged sixty five and above find themselves in a difficult situation where they suddenly have more time to travel following retirement but then discover that their age is making it difficult or impossible to get insurance for their travel.

Figures have shown that the average cost of cover for someone in their thirties is under twenty pounds for a single trip cover policy. However, for someone that is eighty years of age the cost can be around five times that amount, and that’s only if the older traveller is fit and healthy. For those that have past and existing medical problems the cost can be too much to afford.

Older people often struggle to get travel insurance cover, and this is because insurance firms see them as a higher risk and a liability become of their age and frailty. The amount charged for travel insurance for someone aged sixty five can more than double for someone aged sixty six who is going to the same destination for the same period of time.

The amount of choice that older travellers have is also limited, as there are some firms that will not provide cover for anyone aged over sixty five. The cost and availability of travel insurance cover for older people has resulted in some people being unable to enjoy the plans to travel following retirement because they simply cannot afford the cost of the cover.

One industry official said: “It can be very difficult for people of retirement age to get affordable travel insurance cover, and it is vital that they take time to compare because some insurance firms will charge a fortune.”

Tags: policy, consumers, travel, industry official, finding, cost, Types of insurance, amount

Saving money on foreign currency

Whilst the traditional summer holiday period is now over there may be many people that are planning a winter break. For those that do not have children and do not have to take holidays at certain times of the year it is often cheaper and more relaxing to go away out of the typical summer months, and there are still some great places to go to get winter sun without the crowds.

Anyone that is thinking of going away over the colder months will need to get their finances sorted, and this includes ensuring that they have the currency that they need for when they go. These days there are many different ways in which to get foreign currency for your holiday, and it is important to try and get the most for your pound so that you have plenty of spending money whilst away.

There are now many ways in which you can get commission free foreign currency but the amount that you get per pound can vary depending on where you go. Often those with packaged bank accounts may find that they are able to get special deals on their foreign currency so it is always worth checking with your own bank to see what they can do for you.

The Internet provides a very effective way of finding the best deals on foreign currency as you can compare and browse the different rates paid from the comfort of your own home, and you can place your order online once you have decided which is the best deal for your needs. If you want the money delivered to your door you can often order it for delivery the next day if your order in time, but there is usually a delivery charge for this, although it will come by special delivery for your safety.

It is also advisable to purchase a combination of foreign currency and traveller cheques, especially if you are going away for more than a few days. Having traveller’s cheques will provide you with additional security in case your money goes missing, as you can get these replaced quickly and easily in most cases.

Some people leave getting their foreign currency until they get to the airport but this can be a costly mistake. If you want to collect it at the airport some foreign currency providers can arrange this, so you can order and pay in advance and collect when you get to your departure airport.

Tags: Currency, case, travel, foreign currency, airport

Finding a low cost winter break

At this time of year, when the nights start to draw in, the weather gets even colder and rainier than usual, and the prospect of the winter months brings on doom and gloom, many people start thinking about planning a winter break either before Christmas or afterwards, where they can soak up some sun, kick back and relax, and simply forget about their worries.

However, with Christmas coming up most people are on a budget when it comes to booking some time away, and most will be on the lookout for a bargain winter break. Getting away to the sun isn’t always cheap, but a number of steps can really slash the cost of a holiday, giving you something to look forward to without having to break the bank.

It is important to remember that the time of year that you book will affect the price you pay for your hotel as well as your flight. Holidays tend to be cheaper in the winter months, but can be more costly on certain weeks such as over the Christmas or New Year periods. Therefore you may find that going before Christmas such as late November or early December may be the best choice, or failing that waiting until after New Year, and jetting somewhere warm as others are heading back to work after the Christmas break.

In order to find the best price on a winter break you need to ensure that you compare prices on flights, hotels, or package holidays depending on your preferences. Many people these days prefer to book a package because of the number of small airlines and holiday firms that have gone bust, leaving many of those that booked separately unable to claim. However, if you do prefer to book your flight and hotel separately check and see whether you travel insurance policy will cover you, as some have now started to do, and ensure that you book with a credit card for extra protection under the Consumer Credit Act.

You should make sure that you also compare things such as travel insurance, airport parking, and if necessary car hire in order to get the best prices on these. Also, remember that whilst the headline prices on budget airline tickets may look cheap there are often additional extras that can really bump up the price, so you may end up paying far more.

Finally, do remember that you can often make a saving by booking your flight and hotel together, so it is worth comparing the cost of doing this against booking separately or a ready made package deal.

Tags: winter, extra protection, christmas, travel insurance, travel, car hire, holiday, worries

Are you protected if your airline goes bust?

Over the past couple of years the news has been filled with stories about airlines and holiday firms going bust, and whereas in the past many people would simply book the cheapest airline or holiday it has now become necessary to consider whether the airline or holiday company will survive as long as your holiday. Read more

Tags: travel, Package holiday, travel industry, Air Travel Organisers' Licensing, Aviation in the United Kingdom, consumer protection, airline, travel insurance

Holidaymakers slate insurance firms over volcanic disruption

Thousands of UK holidaymakers and business travellers have had their plans disrupted following the volcanic ash cloud that has swept across from Iceland, affecting both the UK and neighbouring European destinations. For the first time British air space was effectively closed down due to the risk of damage to plane engines.

However, this left many people stranded in airports and unable to travel, and for many a major concern was being able to get their money back. Whilst airlines have been offering refunds to those that cannot travel because of the natural disaster, there is no compensation available for those that booked DIY holidays in terms of accommodation costs and car hire.

DIY holidaymakers could now end up getting a very raw deal, as although they will get their flight money back they could stand to lose a fortune in accommodation and car hire costs, as well as other related costs such as any excursions that they may have pre-booked.

Many are now turning on their insurance firms, accusing them of hiding behind the defence that the volcano eruption was an ‘act of God’ in order to avoid having to pay compensation to those that have been unable to travel. It is thought that personal losses from the disaster could amount to £20 million, and this is something that insurers will naturally want to avoid paying if they can.

One holidaymaker who was stranded at the airport because of the volcanic disruption said that her insurance company had already said that they would not be paying for her financial losses.

The customer said: ‘We rang our insurance company and they said it was an “act of God”, so they won’t cover us – we’re stuffed.’

Tags: holiday, insurance firms, travel, Insurance, disaster

Consumer protection laws could fail to protect travellers

Over the past couple of years many people that have booked flights and holidays have been shocked to hear that the holiday firm or airline that they booked through has gone bust, leaving them wondering whether they are entitled to a refund in addition to ruining their holiday plans. Read more

Tags: couple, Package holiday, bust, consumer protection, firm goes bust, Brits

Consumers warned about getting foreign currency at the airport

For many people that lead busy lives organising foreign money in time for their holidays can be difficult, and many cannot find the time to get this done. Read more

Tags: Dynamic currency conversion, airport currency exchange, finance, travel, city, buying, foreign currency, economics

Is wedding insurance cover a good idea?

As a nation we Brits love to feel secure and safe with total peace of mind that we have done all we can to protect ourselves and our loved ones from a range of eventualities. This is why the insurance industry has become so huge, with Brits taking out all sorts of insurance policies to cover all sorts of circumstances. From travel insurance and home insurance to insurance for our pets, cars, mobile phones, health, and even our lives, insurance is something that gives us a sense of security – and often helps us to avoid the huge financial losses that we may otherwise have faced without it. Read more

Tags: travel, wedding insurance, reception, security, Marriage, Insurance, total peace, something

A great way to save money on your holidays

For most households in the UK money is tight due to the effects of the global credit crunch, higher living costs, soaring inflation, and rocketing bills. However, even when finances are looking a bit sorry for themselves many of us still want to try and find a way to get away from it all by booking a holiday, especially with things as stressful as they are in the current climate. Read more

Tags: holiday, description, holiday costs, official, flexibility, travel, uk

Disabled travellers should always check insurance, says expert

Tourism for All has advised disabled travellers to make sure they have the right type of insurance before they go abroad to ensure they are covered in the event of something going wrong.

Brian Seaman, head of consultancy at the charity, said holidaymakers with disabilities should find out whether any equipment they use, such as wheelchairs, is covered by their insurance policy while they are on a break in another country, or whether they will need to extend their cover plan.

In related news, esure recently advised travellers jetting off for an action-packed trip abroad to make sure they check the detail of their insurance policy before they leave.

Mike Pickard, head of travel insurance at esure, commented: “With a surge in the popularity of…more adventurous sports…it’s crucial for holidaymakers to take out travel insurance and check they’re covered before they try out the likes of white water rafting in Australia or shark-feeding in the Bahamas.”

Tags: head, travel, right type, consultancy, mike pickard, wrong.brian seaman, white water rafting, disabled travellers

Stag and hen parties should remember travel insurance this weekend

Those embarking on a stag and hen party this weekend need to remember to book travel insurance, one financial expert has warned.

Fairinvestment.co.uk says many brides and grooms-to-be celebrate this weekend due to the Bank Holidays – but revellers travelling abroad need to remember their insurance as the chances of illness and accidents are high.

According to the company, new statistics from Egg reveal that one in five travellers will lose valuable items and without travel insurance these items will not be replaced.

James Caldwell, director of Fairinvestment.co.uk, said that travelling anywhere without insurance “is a risky business”, never mind on a hen or stag do.

“I strongly advise the best man or bridesmaid in charge to make insurance a priority,” he continued.

According to the company, it could cost up to £3,000 to be returned to the UK in an emergency from any of the most popular stag and hen destinations such as, Spain, the Netherlands or France.

Meanwhile, further research from Sainsbury’s Bank said that up to one in ten of Easter holiday makers are expected to travel without insurance.

Tags: Bank Holidays, further research, new statistics, company, travel

Insurance needed even for ‘breakneck breaks’

More and more British people are jetting off on short duration long-haul foreign trips, new research shows.

Some 3.7 million people travelled more than 5.5 billion miles to take a long-haul (more than seven hours) flight for a holiday of a week or less, a survey by the Halifax found.

And in spite of concerns about the carbon footprint of air travel, the numbers planning to take what has been dubbed a “breakneck break” in the next year are rising.

The study found that 4,987,000 Britons will take such a trip during 2008.

Travelling to less familiar, further flung destinations while attempting to cram in ever more to less and less time increases the need for travellers to have proper levels of travel insurance.

Paul Birkhead, senior manager of pricing and underwriting at Halifax Travel Insurance, warned: “Holidaymakers should not risk travelling without adequate insurance just because they are taking a short break.

“Things can go wrong whether you are taking a break for two days or two weeks. Travel insurance will cover you for the unexpected, making it vital that everyone has it. Lost baggage, delayed flights or illness can prove expensive, especially if you are 1,000’s of miles away from home.”

Tags: duration, air travel, footprint, trip, jetting, Pricing, travel

“Imperative” for travellers to get the right insurance

It is “imperative” for travellers to ensure they have the correct insurance cover for their trip say experts.

STA travel said that every level of travel insurance is different offering various degrees of inclusion and levels of cover.

A spokesperson for the company said there is also a ‘no-one-size-fits all’ approach to purchasing travel insurance.

With adventure holidays and long-haul trips there are increased levels of risk which must be taken into account when selecting insurance cover.

“It may not be the most exciting, but travel insurance is probably the most important purchase you’ll make for your trip,” she said.

It will help you enjoy your trip, offering you protection “against the unexpected” she added.

According to figures from the Mintel Gap Year report, predictions are that the global gap year market will be worth £11 billion by 2010.

The research showed that the market demographic is split into those travelling before, during and after university, as well as those taking a ‘career gap’ and the post-retirement travellers.

Tags: Oceania, research, gap year, protection, travel, cover.A spokesperson

Organising your spending money when going abroad

When you are jetting off abroad there is a great deal to try and think about and organise – it can be easy to forget about something as simple yet important as sorting out your spending money.

However, it is important to organise your spending money properly when going abroad, otherwise you could face security issues or costly charges that could put the dampeners on your holiday. It is best not to rely on any one particular source for your spending, and there are a number of options that you should look at to fund your spending whilst on holiday.

Most people benefit from taking a combination of cash and traveller’s cheques when going on holiday in order to ensure that they increase security for themselves. It is a good idea to take a credit card along as well for emergencies. If you take just cash on holiday with you and your money then gets lost or stolen, you could find yourself without any comeback, and you could be stranded without any money of means of paying for anything. This is why it is important to take a smaller amount of cash rather than relying solely on cash for your holiday spending.

Of course it is important to take a small amount of cash. This includes English currency for when you are travelling to and from the airport or departure point, and for any purchases you may want to make whilst at the airport/ferry port/departure point. You should also take a small amount of cash in the currency used in the destination to which you are travelling for things such as cab fares when you arrive and any smaller purchases you may wish to make on your first day before you have got yourself organized.

Most people prefer to take the bulk of their spending money in the form of traveller’s cheques, which are available from banks, post offices, and other foreign currency providers. You can get traveller’s cheques in Sterling as well as in other currencies. Although it can take a little longer to make a purchase using a traveller’s cheque instead of cash, you have the added security that you can quickly get your cheques replaced in the event that they are stolen or lost, although you should remember to note down the cheque numbers and the contact details for replacement sot that you have these details to hand whilst you are away.

Taking a credit card along for emergencies is another good idea. However, if possible you should avoid using your card unless you really have to, as you could find that the charges imposed by credit card companies for each transaction made can quickly add up, and you could have a shock when your statement comes through. In particular you should avoid using your card to make cash withdrawals whilst abroad, as the combined charges for making even one withdrawal a day can be very high.

Be careful about becoming the victim of credit card or debit card fraud whilst abroad, as recent reports have suggested that Brits have seen a rise in card fraud whilst abroad. Always be vigilant when you do use your card, and if your card goes missing make sure that you report it right away so that the account can be frozen to minimise on any fraudulent transactions or theft carried out using your card.

Tags: money, abroad, cards, transactions, travel, credit, cash

High number of claims over lost luggage

Insurance companies in the UK have reported that the level of claims coming in over lost luggage has soared over the first half of this year, increasing by a huge amount compared to the same period last year.

One leading travel insurer reported that between January and June there were nearly three thousand claims made over lost luggage to the company, which reflected an increase of 85% on the same period in 2006. The average claim was for over £200 according to the insurance company.

The travel insurance company also reported that there was a 22% rise in the number of bags lost across Europe in the same period, despite the level of passengers travelling only rising by 1.4%. The figures have been compiled by the Association of European Airlines. However, some budget airlines such as EasyJet were not included when these figures were put together, and therefore the actually number and level of lost luggage could be even higher.

A spokesman for the insurance company stated: “We have seen an enormous rise in claims for lost luggage. With the summer holiday season now in full swing, we can unfortunately expect more families’ holidays to be ruined by lost baggage.”

Another leading insurance company, Norwich Union, reported a rise of 40% in claims over lost luggage in the first half of this year. The figures from the Association of European Airlines also showed that in 2006 British Airways lost more luggage than any other European airline following a variety of problems that resulted in luggage problems. The reports also highlight the importance of having adequate travel insurance in place when going on holiday or even travelling on business, as loss of all of your luggage can prove very costly.

Tom Smith
28th September 2007

Tags: lost, Insurance, travel, policy, luggage, airline, company

Stay within drink drive limit when on holiday

Every year many Brits head off on their holidays, with a large number of singles, couples, and groups heading to lively destination where they plan to drink themselves into oblivion.

However, anyone that is planning a drink fuelled holiday should bear in mind that even if they have travel insurance cover they may have their claim invalidated in the event that they suffer an injury as a result of being intoxicated.

Most insurance companies that offer travel insurance already have this stipulation in place, where if the accident is found to be the result of intoxication the claim could well be invalidated. American Express insurance is taking it one step further, and has stated that they will conduct an ‘acid test’ in cases where claimants have been injured on a drink fuelled holiday.

These regulations do not mean that holidaymakers cannot drink at all, but in order for the claim to be valid injured parties must prove that they are within the drink drive limits that apply in that particular destination, even if they are not actually driving. Officials from American Express Insurance services have warned that holidaymakers need to ensure that they look after themselves and do not drink to excess when they go away, otherwise it could end up costing them dearly.

Having travel insurance in place when you travel abroad is vital, as the cost of treatment and emergencies can prove extremely costly. However, if you take out insurance and then drink to excess you could risk having to shell out thousands of pounds anyway as the result of being injured whilst under the influence.

Tom Smith
21st September 2007

Tags: foreign, Insurance, holiday, law, drink, limit, accident, drive

Annual travel cover ‘more popular’

More people are taking out annual travel insurance cover because of changing trends in holiday habits, it is claimed.

According to Halifax Travel Insurance spokesperson David Bruce, people are currently taking more short breaks rather than one long summer holiday, meaning that the flexibility provided by annual cover is becoming more popular.

Cheaper airlines are believed to be part of the reason, enabling frequent and affordable weekend breaks abroad, Mr Bruce said.

“More and more people are taking more than the traditional one summer holiday a year so it makes more sense to have annual cover,” he claimed.

However, Mr Bruce warned that should holidaymakers be required to make a claim in the event of a theft abroad, they must obtain a crime reference number or else “the claim cannot be validated”.

According to the Association of British Insurers, travel insurance policies should provide cover for consumers in the event of medical emergencies, loss or damage to personal possessions, loss or theft of money and expenses incurred due to a delay or cancelled departure.

Tags: departure, Types of insurance, flexibility, travel, crime, Association of British Insurers, travel insurance policies

Barclays now offers travel cards

With millions of Brits heading off on their summer holidays abroad, one major consideration is how to deal with taking money abroad.

Some people rely on cash and traveller’s cheques for spending abroad, whereas others prefer the convenience of credit and debit cards, despite the security risks associated with using your plastic abroad. However, there could be a safer alternative available, that combines easy and convenience with increased security.

Pre pay travel cards are available for consumers that want the ease and security of having a card rather than cash when they go abroad, yet do not want to risk loss or theft of their regular credit and debit cards. These cards are also useful for those that want to ensure that they do no spend more than they have budgeted for when they go abroad. Like a pre pay phone, these cards can be loaded with cash before you go on your holidays, and can be used up to the amount that you have loaded onto the card.

Barclays has now decided to offer travel cards to customers, which will be free to obtain and load with cash. However, ATM withdrawals will be charged at 2%, with a minimum £1.50 charge, and there will be a 2.75% conversion fee if it is in a different currency. A Barclay’s spokesman stated: ‘Pre-pay cards are safer than cash and more flexible than travellers’ cheques. Furthermore it helps holidaymakers budget for the spending on their trip by not allowing them to spend more than the balance on their card.’ 

There are travel cards available from other providers as well, and these are the Post Office, which charges a flat fee of £10 for the card and for loading, and from Travelex, which charges 2% of the amount being loaded onto the card with a minimum fee of £10.

Tom Smith
17th September 2007

Tags: rewards, minimum, fee, credit, cards, spend, travelex

Students forgetting to take out insurance cover

It has become traditional for many students in the UK to take a year out after graduating from university to travel the world or get some work experience abroad before settling down to handle ‘real life’.

For many students this is a hugely exciting prospect, and is their first taste of freedom and independence. However, some get so carried away with their plans for taking time out abroad, that they forget about the basics – the vital protection of travel insurance cover.

Travel insurance is vital for those going abroad for any length of time, and even more so for students that are intending to spend long periods of time abroad. Without this the student could really run into problems when it comes to anything from lost and damaged belongings to medical and emergency treatment. Experts are now urging parents to ensure that their children have taken out an adequate travel insurance policy before their head off on their travels.

One official stated: ‘Most parents wouldn’t dream of allowing their child to drive a car without insurance. Yet as many as one in four gap year travellers sets off without travel insurance. Parents could be putting their home at risk because if their child suffers an illness or accident and needs hospital treatment or repatriation, the costs can run into tens of thousands of pounds.’

One student explained how travel insurance cover had helped her when she ran into problems and her belongings were taken: ‘After such a bad experience, I wouldn’t now dream of going away without travel insurance. I have also fallen off a moped in Thailand, which required hospital treatment. Thankfully, my insurance covered me.’

Tom Smith
13th September 2007

Tags: accident, travel, cover, students, vacation, Insurance, medical

Holidaymakers ‘lie on insurance claims’

A significant number of people from the UK confess that they give false information when making a holiday insurance claim.

According to research by Direct Line, 11 per cent of British holidaymakers increase the overall value of a claim.

Another five per cent admit that they have added extra items to an insurance claim. Of the 13 per cent to have made a travel cover claim, 15 per cent admit to lying.

“The telling of a ‘little white lie’ is fraud however they chose to justify it,” said Chris Price from Direct Line. “Contemplating committing fraud is a serious matter and we would urge anyone about to claim on their travel insurance not to take this lightly.”

The study revealed that jewellery was the most popular item for which to make a false claim, with 25 per cent seeking money back for such items.

A recent report from Sainsbury’s Bank showed that 8.8 million people from the UK booked a last-minute summer holiday this year – but in their haste to get away 19 per cent forgot to arrange travel insurance.

Tags: year, Mill, value, Jewellery, haste

The importance of honesty for insurance customers

Many consumers in the UK take out life insurance policies each year, and taking out this type of policy usually involves providing the insurance company with a variety of details about your health and lifestyle.

The cost of this type of insurance cover can vary depending on the company that you go through, as well as on the details that you provide to the insurance company with regards to your health and lifestyle. It is thought that a certain percentage of shoppers may miss out or change vital information in a bid to get cheaper premiums, but experts warn that this could end up being a waste of money as the information that they provide – or fail to provide – could invalidate their cover in the event that a claim needs to be made.

One independent financial adviser has warned that consumers must ensure that they provide up to date information that is accurate and honest when they are applying for life insurance to ensure that their premiums are not wasted altogether.

This includes providing accurate information on their lifestyle, such as their smoking and drinking habits and also any dangerous pastimes or hobbies that they may have. He added that if a claim is made and the insurance company discovers that important information was withheld, or that the applicant was not truthful, then the company is not obliged to make a payout despite receipt of insurance premiums.

He said: “All life insurance policies are underwritten at outset. So if you don’t partake in, say, climbing or mountaineering when you apply for your policy, but then subsequently you do, then that’s fine, nothing wrong with that. But whatever the situation is when you apply for your policy, you must be totally honest, otherwise you may invalidate your claim. The insurance company won’t pay your claim if they found out you lied to them when you filled the form in. People have got to be totally honest when they fill their applications in.”

Tom Smith
28th August 2007

Tags: company, life, Insurance, claim, travel, cover, car, honesty

Is your caravan insured for your holiday?

If you are planning to take a caravanning holiday this year, as many Brits tend to do, it is important to ensure that you have adequate insurance cover in place, state experts.

According to many industry professionals many consumers forget to insure their caravan and contents before heading off on their holidays, and although not compulsory as with car insurance, not having caravan insurance in place could cost some holiday makers a fortune in the event of unforeseen circumstances or accidents.

According to recent figures just over 25% of caravan owners have taken out adequate insurance cover, and with around two million Brits likely to be heading off on caravanning holidays over the next couple of months this reflects a serious deficit in the number of consumers that have protection for their caravans. A good caravan can be a costly investment, and without the benefit of insurance cover can end up costing the owners a fortune.

Many people with lower value caravans fail to take out cover because they may feel that it is not worth it. Reports suggest that the same goes for those that have caravans but rarely use them. However, insurance experts are warning caravan owners of the serious financial implications that can stem from lack of adequate insurance on their caravan, no matter what the age of the caravan or now much it is used.

One industry expert stated: “We were alarmed to see from our research how many people were not taking out insurance. Not only can some of the top of the range caravans set you back well over £20,000 if they are stolen, the damage you can cause to third parties can be enormous.”

Tom Smith
1st August 2007

Tags: cover, holiday, Insurance, car, travel, accident, countryside, claim, caravan, damage

Government to crackdown on insurance cover from travel agents

According to a recent report the government in the UK plans to crackdown on travel insurance cover purchased from travel agents in a bid to provide consumers with higher levels of protection when they purchase this insurance.

The government has announced plans to regulate the sector, and this means that travellers could look forward to increased levels of protection when they purchase their travel cover from travel agents.

The government has announced that the Financial Services Authority will now be regulating travel insurance sold alongside holidays by travel agents. Travel agents that plan to sell this type of insurance with holidays will therefore have to make sure that it is designed to fit the needs of customers.

Customers will have to be treated fairly in line with Financial Services Authority regulations when buying these policies, and in the even that the customer of dissatisfied with an aspect of the sale of the policy he or she can go through the Financial Ombudsman Service.

Ed Balls, economic secretary to the Treasury, stated: ‘Evidence shows that companies regulated by the FSA are better at getting consumers to make an informed choice because they are better at explaining the key features and exclusions of the product and guiding the customer through the sales process.’

The crackdown results from complaints from consumers groups with regards to unsuitable and expensive policies being sold to customers in the past – a problem that this move will help to reduce. The new regulations are set to come into force in 2009, although many officials from the travel agents industry are not happy about the move.

The travel agency industry had asked for the opportunity to make changes without these new regulations being put in place, but were not granted this opportunity.

Tom Smith
4th July 2007

Tags: cover, options, price, Insurance, holiday, finance

Unexpected bills catching us out

We are regularly being hit with a bill or expense that we have not budgeted for.

That is according to new research by Abbey which shows that in the last 12 months, 79 per cent of us have had to fork out an average of £1,375 on an unexpected outgoing.

Abbey calculates that we have spent a combined £48.7 billion in this way in the past year and says that home repairs are the most expensive unexpected cost.

Around 36 per cent of Brits spent £1,206 on home repairs, 42 per cent had to stump up for surprise bills and 29 per cent spent £447 in the last year on unanticipated travel expenses.

Most of us might feel pretty hard done by if we were hit by an unexpected cost but Abbey points out that if we kept control of our banking situation, we would be prepared to deal with the surprise expenses.

“You never know what life is going to throw at you. However, you can prepare for the unexpected through building up a ‘buffer savings fund’ to help deal with these shock events,” said Reza Attar-Zadeh, head of savings at Abbey.

“Most experts recommend that you build up a fund of at least three months salary in an instant access cash account.”

The research also found that people living in Wales were the best budgeters, while those in the south-east were the worst.

Tags: Banking, salary, surprise, money, travel, shock events

Do you have European breakdown cover?

Most motorists in Britain are well aware of what their insurance policy covers in the UK depending on the level of cover that they have, but according to recent research an alarming level have no idea that they may not be covered for driving in other European destinations.

A large number of Brits take their cars along to various European destinations each year, but only a percentage of these have actually got adequate cover that will protect them in the event of breakdowns and accidents whilst driving abroad.

The recent research was carried out by Marks and Spencer Money. The results indicated that only twenty percent of drivers were insured against breakdowns last summer when taking their vehicle to Europe, and only a third of drivers taking their vehicles to Europe were covered in the events of an accident or the theft of their vehicle. This means that the majority of people that take their vehicles to European destinations each year actually have no cover in the event of accidents, theft, or breakdowns.

According to research only ten percent of fully comprehensive motor vehicle insurance policies automatically include European cover; however, many motorists simply assume that if they have fully comprehensive cover on their car then they must be insured for driving in other European destinations – this is not the case. Drivers that intend to take their cars to Europe are warned to check with their insurer first, and to make sure that they add on the additional cover if it does not already exist.

Experts state that it does not tend to be very expensive to add this cover. One spokesperson from insuresupermarket.com stated: ‘It’s worth considering as thieves often target cars with foreign number plates. There’s also a greater risk of having an accident when you’re driving in unfamiliar places on the wrong side of the road.’

Tom Smith
4th June 2007

Tags: breakdown, european, vehicle, Insurance, motor, cover, car, travel, foreign

You could get a better deal with annual travel insurance

According to officials from MoneyExpert buying annual travel insurance cover could work out cheaper than opting for single trip cover, although experts do warn that consumers need to carefully check the policies to see what is and isn’t covered before making any commitment.

According to researchers from MoneyExpert some annual travel insurance policies can work out cheaper than single trip policies, but consumers must check that they are adequately covered.

One MoneyExpert official stated: “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. Nevertheless it remains the case that you can get annual travel insurance for the whole family without breaking the bank. 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. You don’t want to find out when you are making a claim that you’ve saved money at your expense.”

MoneyExpert officials have warned that although it can be cheaper to take out annual cover, consumers should take into consideration the quality of the cover as well as the price. It is important to ensure that you compare different policies, and know exactly what you are and are not covered for in order to ensure that you get proper value for money with your travel insurance policy.

According to Sean Gardner from MoneyExpert: “Average prices provide a guide as to what to look for. It is then up to holidaymakers to probe a little deeper to find the policy that suits them best.”

Tom Smith
26th May 2007

Tags: value, News, annual, travel, cheaper, money expert

HSBC to improve insurance products

One of the UK’s leading banks, HSBC, has announced that it is extending its relationship with insurance underwriter Norwich Union in a bid to improve the insurance products and services that it provides.

Over ten million customers with HSBC can now opt for a range of general insurance products through HSBC that will be underwritten by Norwich Union. The bank and the insurance company have already been working together for over twenty years on certain insurance products, and their relationship will be strengthened as the bank increases the insurance products that will now be provided through Norwich Union.

HSBC hopes that this latest move will place it amongst the top ten providers of general insurance in the UK. Previously, HSBC offered a number of insurance products through Norwich Union, and this included travel, vehicle, and home insurance.

The bank also hopes that profits from its insurance products can be doubled through this improved joint venture, with the bank’s managing director of insurance stating: ‘Creating preferred strategic partnerships with leading general insurers is a key element of that plan. In the UK, an estimated £1 in every £5 of financial services expenditure is spent on insurance. That is why we have chosen Norwich Union, the leading UK insurer with whom we already have a strong working relationship, to help HSBC satisfy its customers’ insurance needs.’

The Chief Executive of HSBC stated: ‘It would be fair to say that HSBC has historically punched below its weight in insurance but we have shown before that our customers want to stay with us if we offer well serviced, good value products.’

Tom Smith
23rd May 2007

Tags: increase, home, Insurance, hsbc, offers, travel, products, contents

Travel Insurance – Keep Your Holiday Protected!

Holidays aren’t exactly cheap these days. Gone are the years when you could pitch up at the English seaside and spend a couple of weeks with the kids paddling in a storm tossed grey sea at Scarborough or Blackpool. These days of sunshine abroad and quality children’s entertainments come at a price. Today, there’s no better reason to insure your holiday. Read more

Tags: employee, foreign, holiday, travel, cover, policy, Insurance, cancellation, accident

Treasury Announces Investigation Of Travel Insurance Mis-Selling

By and large, Brits are a conservative consumer group.  As such, millions of us will gladly pay a relatively small premium to take-out a travel insurance policy before we go away on our holidays.  If you happen to have been one of the millions of Britons who have also experienced the reality of trying to claim on a travel insurance policy, only to find the insurance company worm its way out of the deal under one of the many exemptions, then you may well be delighted to hear that the Treasury has announced that it going to commence an investigation into the manner in which travel insurance is sold in the UK. 

Annually, we Brits spend over £1 billion a year on travel insurance premiums.  We do it because we believe we will be covered for almost all eventualities should something go wrong – either prior to the holiday itself or while on holiday.  In many cases, however, the harsh reality is that the numerous “get out” clauses that travel insurance policies customarily contain means the reality of being refunded, or even being compensated, for an event we thought was covered in our travel insurance is a far cry from what we may have been lead to understand when being sold the policy in the first place.

As such, of particular interest to the Treasury’s investigation will be the old gripe of whether or not travel insurances that are sold as part of a “holiday package” are being mis-sold.  While standalone insurance policies are regulated by the Financial Services Authority (FSA), travel insurance that is sold as part of a holiday package is not. 

Commenting on the current practice of possibly mis-selling travel insurance as part of a travel package, Economic Secretary Ed Balls said, “We need to find out whether travel insurance sold with a holiday is being mis-sold and if we need to educate consumers to consider the cover they want and ensure they are properly informed.”  This comes after Balls discovered that almost half of the UK’s 20 million annual travel insurance policies don’t cover terrorist attacks.

Although travel insurance policies sold by travel firms are not currently regulated, meaning that aggrieved policyholders have little or no right of redress against the travel firm, the announced forthcoming investigation by the Treasury may be just the wake-up call the industry needs to get its house in order or follow the fate of other financial service providers whose practices and activities have recently been curtailed following high profile investigations.

Tags: fsa, travel, premium, cost, uk, commission

Is travel insurance more important than life cover?

Most Brits are well aware of the complications that can arise without the protection of life insurance cover. Nobody knows what lies around the corner, and an accident, sudden illness, or unexpected event could change everything in one fell swoop for our loved ones. Although nobody likes to dwell on the prospect of death it seems that many Brits are simply burying their heads in the sand when it comes to providing their loved ones with protection and peace of mind through life insurance cover, and a survey has revealed that an alarming percentage of Britons do not insure their lives.

A recent survey was carried out by Bright Grey, and a sample group of two thousand Brits was used in the survey in order to determine average figures relating to insurance cover. The results from the survey indicated that Britons considered life insurance cover to be the most important form of protective insurance, with thirty eight percent of those surveyed stating that they felt that it was most important to insure their lives. Home contents insurance and mortgage insurance cover were ranked next in line when it came to importance by the group surveyed.

However, despite the fact that the survey revealed the majority think that life insurance cover is the most important cover to have, it seems that Brits are more interested in protecting their travel than they are their lives. The most popular insurance cover, according to the report statistics, was home content cover, with seventy four percent of people having this type of protection. Hot on its heels was travel insurance cover, with sixty one percent taking out this type of policy.

According to the results of the survey life insurance cover came in third, with only fifty three percent enjoying the protection of this type of cover. Mortgage protection figures were also alarmingly low, with only twenty three percent having this type of cover. Bright Grey products director, Roger Edwards, stated: “This is a real worry. Less than a quarter of people protect their mortgage – over three times more people insure their home contents. And although people seem to know how important life insurance can be, many simply aren’t taking out cover.”

Tags: Insurance, emergency, claim, policy, protection, premium, travel, life, cover