RAC increasing travel insurance premium during period of cover?

my-spirit-soars-free

We have taken out RAC travel insurance. We all have pre-existing conditions, so declared them all at the time - and paid extra to go with RAC (almost double, compared to the cheapest quote) believing that they would cover us, properly, without any hassle.

We could not have been more wrong. One member of the group has needed to go into hospital for iv medication, and RAC have taken the opportunity to demand more money - more than doubling the premium.

They say that I should have read page 9 of the contract, which clearly says that they "may" increase premiums if the health of a covered member changes.

I thought, in my ignorance, that the point of the insurance was to be covered against, well, changes in the health status of members of the group?

If they can just charge more if the health status changes, then when would they ever pay out? What stops them charging extra premium to cover the amount of any pay out?

I asked them to cancel the insurance, as we can get cover much cheaper elsewhere, even with the extra hospital admission, but we can't get our money back either.

Surely information like "if you are ill we will charge you extra premium" should be in the key fact document, not hidden on page 9? And what is the insurance actually covering, if health problems are only covered if you pay extra premiums?

We have put in a complaint, obviously, and the call centre operator was most gleeful telling us that they would take 8 weeks to respond, and that we therefore would not be insured when we actually went on holiday, unless we paid up anyway.

Any suggestions about what we can do? Surely consumer contracts cannot allow the company to charge as much as they like? I would not be as cross if they gave us our money back, as I said, we can get insurance much cheaper elsewhere!

Quentin

You have misunderstood

Changes to the health of the insured of course must be disclosed, and of course the premium may rise if cover is to be continued

my-spirit-soars-free

So, say I need to claim while on holiday, a bill for £100. What stops them saying "your risk just went up by £100, and we will only pay out after you have paid us"?

Or if I go into hospital now, and need to cancel the holiday, so claim, say, £500, they say "sure, your risk has just gone up £500, so pay us and we'll pay out"?


I don't understand the point of an insurance that allows the company to increase the premium by whatever they want on the argument "it is increased risk". Even on car insurance I have the option of cancelling and getting the unused part of my premiums back.

I have just asked Saga, by the way, as we are thinking of going for a totally new insurance, and they tell me they would not increase premiums during the period of cover!

sheramber

check their policy document page 13

6.
If, between booking a trip and the departure date, the status of a
pre-existing medical condition changes, or you are diagnosed with
a new medical condition, you must tell us as soon as possible and
you will be covered for cancellation of your trip. However, if you still
wish to travel, we will advise you if cover is still available under this
policy.
Please note that you must tell us even if you have made a travel
claim in relation to a change to a pre-existing medical condition or
the diagnosis of a new condition.
If we are unable to continue cover we will:
l pay a cancellation claim for any pre-booked trip; or
l give a pro rata refund of your premium if you do not wish to
cancel your trip, unless a claim has been made.
If we are able to continue cover we may:
l charge an additional premium; and/or
l cancel your annual policy and offer cover under a single trip
policy for the pre-booked trip.
Please note, failure to disclose accurately any pre-existing medical
condition or other relevant information may result in one or more of
the following:
l you losing any cover under this policy,
l claims being declined,
l claims not paid in full,
l an additional charge to reflect the premium we would have
charged had we known the true facts.

Quentin

Either you didn't ask saga about changes to health after the policy starts or they have deliberately misled you!

Travel insurance isn't like life insurance!

If your profile changes after a travel insurance policy starts but before the trip starts then no travel insurer automatically will cover it !

If they are prepared to cover it there may be extra cost!

Obviously they don't increase your premium if your health changes whilst on your trip!

(Don't hold your breath over your complaint being upheld)

Manxman_in_exile

my-spirit-soars-free wrote: »

So, say I need to claim while on holiday, a bill for £100. What stops them saying "your risk just went up by £100, and we will only pay out after you have paid us"?

Or if I go into hospital now, and need to cancel the holiday, so claim, say, £500, they say "sure, your risk has just gone up £500, so pay us and we'll pay out"?


I don't understand the point of an insurance that allows the company to increase the premium by whatever they want on the argument "it is increased risk". Even on car insurance I have the option of cancelling and getting the unused part of my premiums back.

I have just asked Saga, by the way, as we are thinking of going for a totally new insurance, and they tell me they would not increase premiums during the period of cover![/QUOTE]


Our last travel insurance was an annual policy with Saga (expired 31 December 2017) and it clearly states that you must inform them of any change in declared pre-existing medical conditions. Then they may either (1) withdraw cover and give you a refund, or (2) continue to cover you, but "may" charge extra premiums.


Are you sure you gave the Saga call line the same set of facts as you gave your insurer? I would be surprised if Saga gave you the wrong answer, as IME their staff are pretty good and they tend to be the first insurer we look at when renewing. It may be they take a different view of the medical condition in question from your current insurer.


I suspect any travel insurer that increased their premiums by as much as they were going to pay out would not stay in business long. (I'm not an insurance expert but presume they increase the premium to cover what they see as the increased risk of you making a claim because of the change in the condition - they aren't going to increase the premium after you've actually made a claim - I hope!)


If it concerns you, don't buy insurance - but you may wish to steer clear of places like the US.