The difference between single and annual travel insurance
A customer was sold an annual travel insurance policy to start at the same date as the holiday, rather than a single trip policy.
No doubt the cost was less (as is commented on elsewhere in our website) however the key difference is: for a single trip travel insurance policy cancellation cover starts immediately, even if the trip is not scheduled for several months. Whereas for an annual travel insurance policy the cancellation cover only commences on the starting date of the policy. In this case cancellation cover was not yet in force as the policy was mis-sold. (The company rep did not make it clear about the difference in cover and no doubt the consumer would have asked for immediate cover had they known)
Now be honest. Did you know of this key difference? (As brokers of course we do and if you ask us for an annual travel insurance policy we will recommend immediate commencement). If not and you have bought your travel insurance online then you are potentially not insured.
A secondary point is when a customer is away on a trip when the annual travel insurance policy runs out. The policy won't be automatically renewed and if there are any medical conditions then they may not be covered. It may be easy to forget this crucial fact so ensure that a new policy is in place before you set off on your holiday.
You have been warned.
For more information contact JB Portwood john.portwood#portwood.co.uk