Some pay over the odds and older travellers may be denied cover. LauraSlattery reports
Now that it's officially the start of the summer, thousands of Irish consumers will take advantage of the May bank holiday break to disappear overseas.
While a high proportion of mini-break tourists don't bother with something as mundane as a travel insurance policy, others pay over the odds and older travellers may be declined cover completely.
If the holiday is sold as a package by travel agents, agents can require that customers take out a minimum level of insurance cover, but they cannot force travellers to purchase a particular policy it sells itself.
An adult will typically pay €30 to €40 for a two-week European policy taken over the travel agent's counter. However, cover may be available for half that amount.
The table opposite shows a sample of quotes for single trips and annual travel insurance policies available on the Irish market.
For two weeks in Europe for one adult, the most competitive price is €13, available to passengers of Ryanair who take out their insurance policy, underwritten by Primary Insurance. But for non-ticketholders the price shoots up to €23, making ACE travel insurance the most competitive provider for those travellers.
Irish residents, who visit www.acetravelinsurance.ie, can buy cover for two weeks in Europe for €15. For a family, the same cover costs €33. ACE also provides the cheapest multi-trip policies, at a cost of €62 for an individual, €91 for a couple and €100 for a family. However, unlike the next cheapest multi-trip policy quoted, from online provider Getcover.com, these prices do not include the cost of winter sports insurance. Annual policies from Getcover, Aer Lingus, AIB Insurance, Bank of Ireland, Ebookers.ie, Ryanair and Travelcover.net all include winter sports cover for between 17 and 24 days.
The table shows that while multi-trip annual policies may be a good option for frequent travellers, the prices at which single trip policies are available make them more suitable for the average holidaymaker, who might spend a two-week holiday and an occasional weekend overseas. Multi-trip policies make the most sense for winter sports enthusiasts, people spending longer periods holidaying outside Europe and large families.
The quotes for families in the table opposite are based on two adults and two children. Some insurers, such as Bank of Ireland, cover an unlimited number of dependent children on a family policy.
Other insurers charge a lower rate for each child named under the policy. Ryanair has no separate rate for children, charging the same premium for a three-year-old as a 30-year-old.
Checking the small print on travel insurance policies is crucial, as it may reveal substantial differences between the cover on offer. For example, the ACE policy covers up to €2 million in medical expenses, while Getcover.com's policy stretches to €8.1 million, with increased limits on legal expenses cover and personal liability.
Recently, the Insurance Ombudsman, Ms Caroline Gill, stressed that consumers should examine the exact terms, conditions and exclusions on their travel insurance policies.
"There is a widespread belief that travel policies provide a financial remedy for almost every loss which may occur on a holiday," Ms Gill warned. But almost all policies contain strict limitations on the type of loss covered and the amounts the insurer may have to pay.
Many travel insurance policies include a cooling-off period as full policy documents are sometimes not available to consumers at the time of purchase. This allows consumers to cancel their contract, receive a refund and look for cover that better meets their needs.
However, older travellers may find it difficult to find any insurer that is prepared to meet their needs, with some insurers refusing to insure anyone over the age of 64. AA, Aer Lingus, AIB, Bank of Ireland, Eagle Star and Hibernian all cover up to the age of 74 but heavy loading on premiums can often kick in around the 70 mark.
"I know most of the insurance companies will now quote people up to the age of 74," says Mr Brian Judd, administrator for the Federation of Active Retirement Associations, "but if you do get a quote, it's normally double the rate. After that, it's very hard to get a quote."
A lot of people over the age of 75 simply travel without insurance, he believes.
Accident & General will quote for the over-75s for single trip policies and brokers and travel agents often source insurance for this age group through the company.
People over 75 pay treble the insurer's standard premiums and people aged 70-74 pay double. Two weeks cover for Europe costs €29 at Accidental & General for people under 70, so the cost for someone over 75 will be €87.
There is no age cut-off at Accident & General, but people over 80 need a medical report and, in common with other insurers, people who have been hospitalised recently or have certain health conditions may be declined cover.
Mr Judd would like to see a breakdown between the medical and non-medical cover provided under policies. "What people are looking for in a travel insurance policy is cover for cancellation, personal baggage, travel delays, personal money, personal liability, legal expenses," he says. "It doesn't matter if you're 25 or 85, that should be the same."
