Moneynet blasts high street travel agents for exorbitant insurance premiums
Holidaymakers taken for a ride with extortionate high street travel insurance premiums
Single trip premiums not regulated by FSA consumers vulnerable
Buying online cheap, convenient and transparent
Holidaymakers are today advised to avoid buying costly insurance from high street travel agents.
Online financial comparison site www.moneynet.co.uk shows in its latest figures that major high street players like Thomas Cook, Thomson and Travelcare, which between them account for around 70 per cent of the travel insurance market#, levy premiums that are typically twice as expensive as buying cover online (see results below).
There is no excuse for travel agents to charge these exorbitant prices, said Moneynet Chief Executive Richard Brown.
Single trip travel insurance can be obtained direct from a broker at very reasonable prices. The difference in price can in our view only be accounted for by the commission that some agents are taking from the insurance company. As usual it is the consumer who loses out because of travel agents greed.
Brown also warned holidaymakers that they are not fully protected by the Financial Services Authority when buying single trip cover from the high street.
The FSA does cover annual premiums bought through high street outlets, but single trip cover, which is very popular with holidaymakers, is not under the watchdogs remit, said Brown.
Another issue for potential concern is that different levels of travel cover are available e.g., gold, silver and bronze. It is important for holidaymakers to understand the level of cover being purchased and to compare like with like.
You have to ask yourself if a travel agent who is more often than not only concerned with commission actually knows what level of cover is most appropriate. At Moneynet we have an at-a-glance system, so you know exactly what you are getting, added Brown.
Results:
The quotes below are for a two week trip to Europe for a family of four (two adults and two children under 16): single premium
Moneynet
35.10
Travelcare
75
Thomas Cook
120
Thomson
124
Source: Moneynet, April 25, 2005
# Figures are from the Association of British Insurers, February 2005
ABOUT THE AUTHOR
Moneynet.co.uk is the UKs most established personal finance research and data website.
Press enquiries:
Richard Brown, 020 8313 9030, info@moneynet.co.uk
Website: http://www.moneynet.co.uk
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Diary of a CAT man: our associate editor travels to the Gulf Coast just days after Hurricane Katrina hit to survey the damage and discovers the real meaning … Story): An article from: Risk & Insurance
Diary of a CAT man: our associate editor travels to the Gulf Coast just days after Hurricane Katrina hit to survey the damage and discovers the real meaning … Story): An article from: Risk & Insurance
This digital document is an article from Risk & Insurance, published by Thomson Gale on October 1, 2005. The length of the article is 2090 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
Citation Details
Title: Diary of a CAT man: our associate editor travels to the Gulf Coast just days after Hurricane Katrina hit to survey the damage and discovers the real meaning of the word “adjustment.”.(Cover Story)
Author: Matthew Brodsky
Publication: Risk & Insurance (Magazine/Journal)
Date: October 1, 2005
Publisher: Thomson Gale
Volume: 16 Issue: 12 Page: 19(2)
Article Type: Cover Story
Distributed by Thomson Gale
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