While the summer holidays may seem like a life time away, many people are already booking their getaways now while the prices are cheaper. Defaqto, an independent financial research company, has warned about the importance of taking out holiday insurance the moment you buy your plane ticket.
The company said that as soon as you financially commit yourself to the holiday you should insure yourself incase the trip has to be cancelled between the time of booking and departure.
According to Defaqto analysis, almost all single trip and annual travel insurance policies cover cancellation, but the level of cover varies widely across the market. The research found that while 41% of single trip policies cover £5,000 in cancellation cover 7% cover less that £1,000 and only 1% of policies cover the complete cost of the holiday.
Because of these differences it is important to know what your policy will cover, says to Defaqto’s Insight Analyst for General Insurance, Mike Powell.
“To ensure they get the right type and level of cover to protect their holiday, people need to focus first and foremost on pinpointing the features they need from a travel insurance policy and identifying the options that provide that cover.
“Although important, price should not be the primary basis for comparison. After all, buying the cheapest cover available could end up being the most expensive option if it doesn’t provide adequate cover for someone’s holiday if it had to be cancelled due to redundancy or illness for example.”
