Big brand travel agents are ripping off consumers with inflated prices for travel insurance, warned specialist provider InsureandGo.
The results of an independent InsureandGo survey, conducted by Dipstick Research, revealed that consumers should shop around for their travel insurance cover to take advantage of the lower prices offered by specialist providers.
Travel agent First Choice would charge a family visiting Spain for two weeks £248 for their cover, claimed InsureandGo. It said a comparable policy purchased from them would cost only £29.17.
Perry Wilson from InsureandGo said: “We realise that it may be more convenient for consumers to buy their cover at the same time as booking their holiday but they will certainly pay the price, enough in some cases to cover the cost of a person's trip.
“Consumers should be aware however that travel agents make huge commissions on the insurance policies they sell, nearly 100% in some cases. So if a travel agent claims they can’t sell a holiday without the customer taking out their cover then they are actually breaking the law.
He continued: “Annual cover should work out more cost effective if a person travels more than twice a year. But with the travel agent prices our survey's revealed it's hard to see where the saving would be made.
“And as for the prices quoted for single trip cover, they’re nothing more than diabolical. It’s a rip off, simple as that.
“We again question the Treasury’s decision not to include travel agents in the forthcoming industry regulation as we believe this will not only lead to a two tier system but more importantly one that is not designed to fully help and protect the consumer.
