Travel insurance cheaper than ever

Travel insurance premiums have dropped sharply as competition in the industry rises, a report has found.

The only area where premiums have increased in the past year was for annual travel cover to the US, travel comparison site Defaqto found.

However, premiums are still lower than they were in 2003, even before inflation is taken into account.

But one in seven travelers still go abroad without any travel insurance – an unnecessary risk, Defaqto said.

"Competition in the travel insurance market is having a very significant effect on the price of travel cover", said report author Brian Brown.

"The availability of a huge number of policies, many of them online, has driven many insurers to lower their premiums," Mr Brown added.

"Single trip cover to Europe can now be bought for as little as £6 for a week's holiday. There really should be no excuse for people to travel uninsured."

Defaqto analysed prices for over 235 single trip and 245 annual travel policies, looking at how premiums have moved since 2002 and concluded travel insurance has never been cheaper.

However, the company added that as well as looking at the price, buyers should ensure their policy offers the right level of cover for their needs.

Sarah Routledge