Renewing annual travel insurance: what happens if circumstance changed?

silvercar

My annual travel insurance renews in July.

(As it happens the best deal I get is by taking the extra cover that comes as an option with my house insurance so the date is fixed.)

So I book a holiday for the Summer early in the year and as I've got annual travel insurance, I don't need to take insurance again.

But then say something happens, like a relative gets ill, before my holiday insurance renews. Is there some sort of continuity of cover?

magpiecottage

Generally, in the circumstances you describe, you must declare it to the insurer before renewal. They can then decline to renew the policy but if they do they should allow you to cancel holiday and claim on the old policy it before it expires.

silvercar

So is there no way of covering every eventuality when you buy your holiday and your annual insurance doesn't renew until just before the summer holiday.

Quentin

Not with annual policy.

But you can take out a single trip policy which would cover your requirements.

silvercar

Single trip works out too expensive. This policy as an add-on to household insurance covers the whole family whether holidaying together or separately.

So there is no way of getting annual holiday insurance that covers you for cancellations if you renew the policy between the time you booked the holiday and your holiday date! Somehow that seems wrong.

Quentin

The catch with annual travel policies is that there are 2 occasions when you have to declare any relevant conditions:

1) At the time of buying the policy AND at each renewal of the policy

2) At the time you book each trip

silvercar

Quentin wrote: »

The catch with annual travel policies is that there are 2 occasions when you have to declare any relevant conditions:

1) At the time of buying the policy AND at each renewal of the policy

2) At the time you book each trip

So if at the time you book a trip there is nothing to declare and then you get to renewal time, 2 weeks before your holiday, the insurer can decline to cover for cancellation?

So that means you can't get cancellation cover when you have an annual policy.:mad:

Quentin

An insurer would (should) allow you to cancel a holiday should the condition you want to declare (in your scenario) be unacceptable - (ie. cancel under the expiring policy)

silvercar

Quentin wrote: »

An insurer would (should) allow you to cancel a holiday should the condition you want to declare (in your scenario) be unacceptable - (ie. cancel under the expiring policy)

Can you expand on this please. Two scenarios (neither of which have yet occurred by the way):

Holiday booked in January for August. Insurance renews in July.

A) Elderly relative of one of the family going on holiday gets ill, so there is a risk of being called back from holiday. Are you saying this would be declared before renewal and the insurer may not cover on the renewed policy - running the risk of being uninsured to curtail holiday and return home. Or are you saying that on the existing insurance you would be able to claim for a cancellation and decide not to go in case you get recalled at the time of holiday.

one of the travelling holidaymakers develops a problem and may be unable to travel. If the problem and therefore cancellation occurs while the existing policy is in force, I presume the existing policy would cover the cancellation. At renewal the medical history would be updated and the insurer could choose not to provide cover, but would they pay cancellation charges given that it wouldn't be sensible to travel without insurance?

Quentin

A) This would need to be declared before renewal. If the insurer refused to cover this for the next policy, then they should let you cancel if you didn't want to accept the restricted cover for the renewal.

Same answer as above.

silvercar

Thanks. I have now also found a reference to it from the ombudsman:

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/49/annual-travel-insurance.htm

Previously my annual travel policy was bought in October and so the problem didn't occur. On moving house the renewal date is July and as I buy the travel policy with my house insurance it is going to be costly to separate the two and move the renewal date of the travel insurance to a more convenient time.