Travel insurance is “too cheap” to be any use

Some policies charge too little to be able to pay out, warns Defaqto.

Defaqto is warning consumers buying travel insurance not to base their decision just on the cost of the policy. The report, reveals that some policies are now “too cheap” to be able to offer adequate cover.

Defaqto believes the government and the insurance industry need to do more to educate consumers about the risks of travelling overseas without adequate cover.

Report author and Defaqto’s head of insight, Brian Brown commented: “The insurance industry and the government must to do more to ensure that all consumers are aware that when it comes to travel insurance, cheapest is not always best. Two areas of particular concern are that consumers do not understand how baggage cover works and we believe that there needs to be more clarity with regards to insurers requiring original receipts for even minor claims”