TRAVEL ARTICLES
Monday, 3 September 2007
Travel Agents selling "dubious" travel insurance
A recent study by Sainsbury's Travel Insurance has found that millions of travelers are being mis-sold travel insurance by travel agents.
According to the survey over three and a half million people have been sold "dubious" cover by travel agents. There is also a suggestion that travel agents use "bullying tactics" to push customers into purchasing policies that don't necessarily represent good value. An alarming 9% of UK holidaymakers were told that the only way of securing their preferred holiday was by also purchasing cover.
Steve Johnson, head of travel insurance at Sainsbury's Bank, explained: "It's possibly tempting to purchase cover from the travel agent when the pressure is on and you're told it's a popular destination and there's not guarantee there'll be any room left.
"But the only way to be sure you get the cover appropriate for all your needs at a price that's right is to shop around."
These findings follow on from an announcement in June that from 2009 the FSA will regulate all travel insurance sold by agents as part of package deals just as it already does with other travel insurance companies. The decision was inspired by reports suggesting that during 2006 10 million Brits traveled abroad without realizing that their policy would fail to cover them in the event of a terrorist attack.
The survey revealed that 17% of those buying insurance from travel agents weren't asked about pre-existing medical conditions and a further 13% said that they were sold insurance without any explanation of what it did and didn't cover
Steve Johnson continued: "If you know roughly where you plan to go and for how long, there's nothing to stop you obtaining your insurance before you step foot in the travel agent especially when considering an annual policy."
By shopping around for deals with dedicated travel insurance companies like Go Travel Insurance, Insureandgo or AA Travel Insurance holidaymakers are likely to find better deals that are more tailored to there particular needs than by picking up insurance as part of a travel agency package deal.
According to the survey over three and a half million people have been sold "dubious" cover by travel agents. There is also a suggestion that travel agents use "bullying tactics" to push customers into purchasing policies that don't necessarily represent good value. An alarming 9% of UK holidaymakers were told that the only way of securing their preferred holiday was by also purchasing cover.
Steve Johnson, head of travel insurance at Sainsbury's Bank, explained: "It's possibly tempting to purchase cover from the travel agent when the pressure is on and you're told it's a popular destination and there's not guarantee there'll be any room left.
"But the only way to be sure you get the cover appropriate for all your needs at a price that's right is to shop around."
These findings follow on from an announcement in June that from 2009 the FSA will regulate all travel insurance sold by agents as part of package deals just as it already does with other travel insurance companies. The decision was inspired by reports suggesting that during 2006 10 million Brits traveled abroad without realizing that their policy would fail to cover them in the event of a terrorist attack.
The survey revealed that 17% of those buying insurance from travel agents weren't asked about pre-existing medical conditions and a further 13% said that they were sold insurance without any explanation of what it did and didn't cover
Steve Johnson continued: "If you know roughly where you plan to go and for how long, there's nothing to stop you obtaining your insurance before you step foot in the travel agent especially when considering an annual policy."
By shopping around for deals with dedicated travel insurance companies like Go Travel Insurance, Insureandgo or AA Travel Insurance holidaymakers are likely to find better deals that are more tailored to there particular needs than by picking up insurance as part of a travel agency package deal.
