Travel Insurance - annual renewal

brewerdave

I'm sure that this has been covered before but...I have an annual policy with Company A. I have booked a flight/holiday for next year whilst covered by this policy. On renewal date I change to Company B...presumably Company B are now "responsible" if I have to cancel EVEN THOUGH the policy wasn't in force when the flight/holiday was booked?
If not intending to travel anywhere until that holiday, can I let the annual cover lapse and take the risk that nothing will happen to lead to cancellation and then book insurance much nearer to date of travel and still be covered for cancellation of this trip??

Quentin

You will only be covered for cancellation if a policy is in force on the date the event occurs forcing the cancellation.

So to be covered you need your new policy to start immediately the old one ends.

To be covered against all eventualities for a trip that starts after an annual policy expires you really need a single trip policy for the trip. (You or a relative may develop some condition between now and the renewal date in which case you wouldn't be covered if you needed to cancel under the new policy)

dzug1

Company A will cease to have any responsibility for you when you don't renew their policy.


Company B will have no responsibility for you until you take out a policy with them


You can take the risk of not renewing, yes, but you will be self insuring in the interim and also run the risk of something happening that means company B will not take you on.

Quentin

dzug1 wrote: »

......You can take the risk of not renewing, yes, but you will be self insuring in the interim and also run the risk of something happening that means company B will not take you on.

The problem is that if "something happens" then company A may not cover it at renewal either.


There is a "catch" with annual travel policies when you want to cover a trip after the policy expires in that you have to make your declarations to them when you renew as well as when you book trips.


So in the OP's scenario a problem could arise if a close relative was diagnosed with something whilst Company A is covering the trip. Come renewal neither Company A nor B will cover the relative, so if the condition means the trip has to be cancelled, then there is no cover to pay the costs. A single trip policy is the only way to avoid the catch in these circs.

brewerdave

Thanks very much both -for various reasons we aren't likely to go on any other trips in the next twelve months so it looks like a single trip policy is the way to go then. We can always go back to an annual multitrip policy some time next year if it makes financial sense.:T

dacouch

Quentin wrote: »

The problem is that if "something happens" then company A may not cover it at renewal either.


There is a "catch" with annual travel policies when you want to cover a trip after the policy expires in that you have to make your declarations to them when you renew as well as when you book trips.


So in the OP's scenario a problem could arise if a close relative was diagnosed with something whilst Company A is covering the trip. Come renewal neither Company A nor B will cover the relative, so if the condition means the trip has to be cancelled, then there is no cover to pay the costs. A single trip policy is the only way to avoid the catch in these circs.

If action is taken prior to renewal they have cancellation cover

"renewal of annual travel policies

Policyholders with annual policies are often required to tell their insurer about any significant changes in their health when they renew their policy. It is good industry practice for insurers to include reminders about this on renewal documents.

But insurers are not obliged to offer renewed cover on the existing terms for the next year's insurance - and they may not provide any cover for claims arising from the condition.

This can be problematic for the consumer if they already have a holiday booked. They may not know until they travel whether their condition will affect their travel plans.

Most policies also only provide for cancellation when it is "medically necessary". This may not be known until nearer the time of travel. So the consumer may not be able to cancel their holiday and claim for the associated costs before their existing cover ends.

This means the consumer may have to:

run the risk of being liable for cancellation costs, if they cancel the holiday nearer the time; or
run the risk of being liable for medical expenses abroad, if they go ahead with the holiday; or
cancel the holiday early, bearing the cost themselves.

In this type of situation, we normally take the view that it is reasonable for the insurer to offer the policyholder the option of cancelling the holiday and claiming under the policy before cover ends - even if the cancellation is not medically necessary at that stage.

If the policyholder decides to go ahead with the holiday, they know what insurance cover they have - and what costs they may incur."

http://www.financial-ombudsman.org.uk/publications/technical_notes/travel-insurance.htm