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Cancelling travel insurance after holiday and within 14 days?
silvercar
Posts: 50,475 Ambassador
My son upgraded his phone and took out phone insurance at the same time. the phone insurance is cancel-able after 3 months. I can see that he can upgrade his bank account that offers mobile phone insurance and other benefits for less than the cost of the mobile phone insurance. (unsurprisingly :mad: ) So logically, that is what he will do.
Coincidentally he is away on holiday at the moment and only took out his travel insurance, an annual policy last week. The policy was taken out online and comes with 14 cancellation rights.
Given that the bank account upgrade includes travel insurance and that he has no holidays booked at the moment, so doesn't need coverage once he is home, it looks like he could cancel the holiday insurance, assuming he doesn't need to claim, once he is home before the 14 days elapse.
When I read that back, it looks like he has benefited from the annual holiday insurance policy, but can cancel. So what am I missing? His particular circumstances means it makes sense and involved no skulduggery on his part, but what stops people doing this often?
Coincidentally he is away on holiday at the moment and only took out his travel insurance, an annual policy last week. The policy was taken out online and comes with 14 cancellation rights.
Given that the bank account upgrade includes travel insurance and that he has no holidays booked at the moment, so doesn't need coverage once he is home, it looks like he could cancel the holiday insurance, assuming he doesn't need to claim, once he is home before the 14 days elapse.
When I read that back, it looks like he has benefited from the annual holiday insurance policy, but can cancel. So what am I missing? His particular circumstances means it makes sense and involved no skulduggery on his part, but what stops people doing this often?
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Comments
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Cancellation within the 14 days will still likely incur some cost.0
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He would need to compare like with like as the bank insurance may not be the same cover as his annual policy.
Also with the bank phone insurance he may need to register his phone with them as I recall issues where people have tried to claim but their phone details hadnt been registered or they hadnt changed them with the bank when changing the phone.Mortgage started 2020, aiming to clear 31/12/2029.0 -
It is interesting thought - obviously with car insurance once the policy has come into force you are into prorata+cancellation charge but I guess if for an annual travel policy there is no mention of this in the T&C then you are good to go.
I have been known to buy a warranty with electrical good in order to get a discount on the electrical good purchase price then cancel the insurance within 14 days so I guess the same applies, I would have been covered for those 14 days had I need to claim (for example for accidental damage that would not be covered by the standard manufacturer/sale of goods act cover).
The only problem with this approach for all holidays is it only covers up to 14 days (could you take out a second policy whilst away having cancelled the first one?!) and that unless it is a last minute booking you do not get the cover for the period between booking and travel.I think....0 -
but what stops people doing this often?
You need cover from when you book.
This is because something could happen after you book but before you travel e.g. you could break a leg and be unable to travel.
For most people with jobs this is usually in the order of several months beforehand.0 -
It is interesting thought - obviously with car insurance once the policy has come into force you are into prorata+cancellation charge but I guess if for an annual travel policy there is no mention of this in the T&C then you are good to go.
I have been known to buy a warranty with electrical good in order to get a discount on the electrical good purchase price then cancel the insurance within 14 days so I guess the same applies, I would have been covered for those 14 days had I need to claim (for example for accidental damage that would not be covered by the standard manufacturer/sale of goods act cover).
The only problem with this approach for all holidays is it only covers up to 14 days (could you take out a second policy whilst away having cancelled the first one?!) and that unless it is a last minute booking you do not get the cover for the period between booking and travel.
No that's not allowed.0 -
Your son would need to check his annual policy as it may see he can cancel within 14 days if he has not travelled0
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