1.3 billion wasted on holiday insurance

Holidaymakers wasting 1.3 billion each year by using single trip cover.

09:00 15 June 2004

Holidaymakers are wasting up to 1.3 billion each year by using single trip cover rather than getting year-round cover.

Research by Alliance & Leicester has found that two out of three people expect to holiday at least twice this year. Yet out of these barely a quarter (27 per cent) have arranged an annual insurance policy to cover these trips.

The head of current accounts at Alliance & Leicester, Ewan Edwards, said: "Anyone who gets away more than once a year is almost certainly better off getting an annual policy - particularly if, like two in every three of us, they still buy expensive single-trip cover from their travel agent."

Of the 62 per cent (or 28.8 million people) who try to holiday at least twice a year, almost half (46 per cent) buy travel insurance each time they travel.

With the average single trip travel insurance policy costing from 10.49 to 60, these travellers could potentially be spending on average a total of 1.33 billion on travel insurance each year.

Mr Edwards also pointed out that some bank accounts - including Alliance & Leicester's Premier Current Account - even offer annual travel cover for free.

Cover is also available through several credit card providers.