Travel insurance price hikes may be imminent
Travel insurance premiums may rise rapidly next year if rumours from the industry are correct.
There are predictions that cheaper policies may rise by as much as 40%, while Axa travel insurance has confirmed that an increase of at least 10% is imminent.
At least three factors are contributing to the expected increases: a growing level of fraud increasing insurer costs; a rise in the tax on travel insurance premiums in January (from 17.5% to 20%); and a weakening pound, which means that spending insurers make abroad, such as settling medical claims, works out as more expensive.
While customers can’t stop the price rises, they can shop around to get the best deal, while making sure the cover on offer is adequate. It’s also likely to increase the number of travelers for whom an annual policy works out cheaper.
Dan Plant of Money Saving Expert says that in most cases, anyone making more than two overseas trips (or making two trips including one to the US) will get a better deal from an annual
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