The Daily Telegraph - Saturday - Money
Tricks to pick travel insurance
Choosing the right cover has never been harder – but it is essential, writes Jessica Beard
Summer holidays are on the horizon, and a soaring number of eager sun-seekers have rushed to book time away as restrictions are lifted. But hopeful travellers risk finding themselves unprotected if they do not choose the right travel insurance. Medical Travel Compared, a comparison group, estimated that more than 1.9 million Britons may have travelled uninsured last summer because their policies had become void.
Bookings made for flights from Britain to Greek islands Mykonos and Zante soared more than 300pc over the past month, according to price comparison site Skyscanner. Air fares to Greece for this summer are up to 30pc lower than in 2020 and 11pc lower than in 2019. Meanwhile, flights to Spain are selling at a 25pc discount compared with last year.
However, constantly changing restrictions and international travel rules threaten to ruin plans. Even those with travel insurance may find themselves unprotected if their trip is cancelled.
Many of the largest insurers temporarily stopped selling travel policies to new customers while the travel ban was in place but most have now resumed sales.
Travellers must navigate a complex web of Covid-19 exclusions to find the cover that is right for their situation and priorities.
Those shopping for new travel insurance should read policies and exclusions carefully before making a decision. For example, while some policies cover medical treatment as a result of catching Covid-19, others may not pay out if a trip must be cancelled due to having to self-isolate or Foreign Office guidance changing.
Martin Nolan, of Skyscanner, warned that travel would be more complex this year, with extra considerations such as testing, health passes, insurance, and travel corridors to factor into any decisions. He said: “On top of the usual considerations, travellers might be in different positions with regards to vaccinations.
“If your main concern is health, then it’s important to ensure that any cover is inclusive of illness protection, particularly if there are people in your travelling group who have not been vaccinated against Covid.”
For example, getting medical cover for coronavirus may be more important for travellers who have not yet had the vaccine.
It is important to note that policies that pay out if a trip is cancelled because of further lockdowns or a change in the official advice from the Foreign, Commonwealth and Development Office, are rare.
However, some insurance providers, such as LV, will cover any costs if you need to get home in an emergency because the Foreign Office has imposed travel restrictions, although this is not consistently offered by all insurers.
Even for those holidaying in Britain, most insurers are unlikely to cover certain coronavirus-related cancellations, particularly if the trip is booked while the travel ban is still in place.
Travellers should also not rely on their insurance provider to cover the cost if they must either quarantine abroad or if they are denied boarding on return to Britain after a positive test, as few offer refunds.
But nearly all travel insurers will cover medical bills if you catch coronavirus while abroad, and many will pay out if you cancel your trip because you test positive before you leave. Admiral has said it is currently updating its policy to include the positive test cover by the summer. Saga, LV, Axa and Aviva all already have this in place.
Aviva is one of the few providers that will cover you if you cancel a trip because you are told to self-isolate, for example by the Test and Trace service. Meanwhile, Saga will not pay out for this.
Tommy Lloyd, of Medical Travel Compared, said he was concerned that people would be underinsured when planning a staycation. Getting insurance when travelling in Britain can still cover you for important aspects such as loss of belongings, personal accident and cancellation benefits. Staycations can also be subject to lastminute cancellations.