As summer holiday season approaches, experts from Gocompare.com travel insurance are warning holidaymakers not to leave arranging their travel insurance to the last minute or risk losing their holiday costs if they have to cancel their trip.
According to research based on their own customer data, more than half (56%) of the holiday makers who purchased their travel insurance through Gocompare.com last year arranged their cover within a week of their holiday start date. This includes 9% who arranged their cover on the actual day of departure.
84% of travel insurance policies purchased last year through Gocompare.com were bought within a month of the holiday start date.
98% of single trip policies provide some level of cancellation cover which starts as soon as you purchase the policy, not on your date of travel. This cancellation cover provides valuable protection against events affecting you long before you even leave your home.
According to figures from the ABI, around 34% of travel insurance claims made by UK holidaymakers are for costs related to cancellations with an average claim value of around £700. This is second only to the average medical costs claim of £900.
However, insurers will only consider claims if they are prompted by events travellers could not have known about before buying their insurance. Therefore, the sooner they buy the policy, the more likely it is they’ll be covered if something happens between booking their holiday and going on their trip.
Cancellation cover would enable the holidaymaker to reclaim the costs of their holiday, up to the cover limit and minus any excess, should certain circumstances arise before going away. These may include a serious illness or injury affecting someone in the travelling party or a close relative, such as a parent, child or sibling, who isn’t travelling but with whom they would like to remain at home.
Having a serious fire or flood at home may be another reason why you might want to cancel or postpone your holiday, but may be covered for under your travel insurance policy. Also, you can’t usually refuse jury service because of a holiday booking, but if you didn’t know about it before you arranged your insurance you may be able to reclaim some or all of the costs of cancelling or postponing your trip.