Cost of holiday cover jumps 8.5pc – but payouts fall
PEOPLE jetting off on holiday have been warned that travel insurance premiums have jumped in price.
And the amount consumers can get in a payout when they make a claim has come down, a new survey shows.
A survey of 16 insurers carried out by the Consumers Association shows premiums have gone up by 8.5pc.
This has seen the cost of two weeks' cover worldwide for an individual jump from €50 last year to €55 now.
A similar hike has been recorded for single-trip cover for an individual travelling in Europe, with premiums jumping from €23.60 to €25.60.
But despite the higher costs, insurers have not increased the amount of money they will pay out on a claim.
AXA emerged as the best value for cover for someone taking a single trip in Europe, at €11.99. This contrasts with Insurance Bookers, which charges €41.19.
There are also huge variations in premiums for someone taking out worldwide cover.
The survey shows AA Ireland as the cheapest at €30.87, with 123.ie the dearest at €86.48.
Ryanair also emerged as offering good value.
For those who need a policy for travel in Europe, the lowest-priced policies are 250pc cheaper than the dearest ones.
With worldwide cover, there is a 300pc gap between the cheapest and the dearest.
Huge differences in the level of cover offered by different insurers are also evident.
Insurance Bookers will only pay out a maximum of €6,000 for a personal accident, compared with €40,000 with the Trailfinders policy.
There is also a wide variation in the cover for the loss of property, baggage delay, money loss, personal liability and flight cancellation.
Author of the survey, which is published in the association's 'Consumer Choice' magazine, Roisin Moloney warned holidaymakers to check the fine print on policies before buying.
"It is crucial that consumers do not presume that by paying more they will automatically receive greater cover – a little research is required," she wrote.
And she warned that most policies claimed they would cover for the loss of personal property worth between €1,500 and €2,000. But in most cases, valuables can only be claimed for up to €300 or €400.
People who have private health insurance get discounts on travel insurance premiums, according to the research. Travellers were also advised to sign up for a European Health Insurance Card, which covers treatment in public hospitals in the EU, along with Iceland, Liechtenstein, Norway and Switzerland.