Why such a difference in price?
You're looking for Annual Multi Trip insurance for 2 adults and when you compare prices you see they vary from £25 to £55 - for the same thing!
So why such a difference in price?
Well there are a number of reasons and the explanation could lie with one or many of them.
Big Name Insurer versus Small Name Insurer.
There is a perception that the big name insurers are better known, better established, higher profile, spend on big ad campaigns, have better products and offer better support should you need to make a claim.
While the small insurers don't spend much on advertising, cut corners on the products and don't offer the same level of support.
But the reality is very different.
Yes - the big names can charge a little more because they are perceived
as being better - in the same way that Heinz beans are usually more expensive
than supermarket own label.
And the same applies with travel insurance policies.
The important thing is to check the policy cover details before you buy and make sure you have the cover you need - the devil is always in the detail.
Here are some of the areas in which policies can differ - and have a big influence on the price you pay.
The number of holidays and duration
This can have a marked influence on the price. For example you look at Annual Multi Trip policies that include Winter Sports cover. If one policy allows you to take 3 ski holidays a year while the other restricts you to just one - which do you think would be more expensive???
For this reason, always check no. and duration of trips - this can have a big influence on the cost of cover.
What exactly is covered
Once you've narrowed your search down to 2 or 3 insurers - take a quick look at what you're covered for:
A policy can cover you for a whole range of eventualities including:
Holiday Cancellation, Curtailment, Personal Accident, Baggage, Cash & Documents, Medical Bills, Travel Delay.
So when comparing policies make sure you have all the cover you need and for all the people in your party.
The amount of cover
Would you prefer a policy that offered £5,000,0000 of medical bills cover as opposed to £1,000,000. Or a policy that covered you for £300 in lost cash as opposed to £50.
Think about it - you are more likely to lose cash than need more than £1,000,000 of medical expenses, so be sensible about the amount of cover you will need
The excess
And of course, consider any excess payments you need to make (i.e. the
amount you pay up front towards any claim).
Most claims are for lost
possessions and minor medical matters. So if you have cheap insurance but pay
a hefty excess it could cost you money in the long run.
Cancellations and delays
- When choosing the right policy, although you want the cheapest, make sure it covers the cost of the planned trip, so you don't lose money if your trip is delayed or cancelled.
- If your baggage is delayed for more than 12 hours, you will be covered, and able to buy any items you need, but be sure to keep all receipts.
- Your policy can cover a number of reasons, so make sure you are covered in the case of any of the following events: Illness or death in the family, or of a business partner, fires, floods, or serious damage to your home, or business building and the request by the police not to go away, as a result of a burglary.