Coronavirus: Nearly half of UK’s major insurers stop selling travel insurance
Nearly half of all major UK insurers have now stopped selling travel insurance as the coronavirus pandemic continues to affect trips worldwide.
Some 31 of the nation’s 75 leading insurers have pulled their travel insurance offerings, according to Which?.
A further 13 companies have also changed their terms to exclude claims related to Covid-19 for new customers.
Brands that have suspended the sale of travel insurance include Admiral, Aviva, Churchill and Direct Line.
Existing customers who purchased insurance before the coronavirus outbreak started heavily impacting on travel in mid-March should still be covered in most cases.
For those who have a trip booked post-16 April – which is when the Foreign Office advice against all foreign travel is currently due to expire – but haven’t taken out insurance yet, it may be difficult to purchase cover that includes coronavirus-related travel disruption.
Which? recommends new customers look out for policies that include “travel disruption cover”, which allows travellers to claim for costs associated with delays, missed departures or an unplanned extended stay in a destination for those who can’t get home.
Travel insurers are expected to pay out a minimum of £275m in coronavirus-related claims this year, according to estimates from the Association of British Insurers (ABI).
This would be the biggest annual cancellation payout ever, almost double the previous record set in 2010.
“Coronavirus has had a huge impact on the travel insurance market, with dozens of providers amending policies or pulling them altogether,” said Gareth Shaw, head of money at Which?.
“This is creating confusion and uncertainty for consumers, who may feel they simply cannot make plans for future trips in the circumstances.
”The government, insurers and the travel industry must work together to tackle the huge challenge posed by coronavirus, to ensure people feel confident enough to travel in the knowledge that they will be covered.“
Firms no longer selling travel insurance
AA
Admiral
Alpha Insurance
Asda
Aviva
Boots
Churchill
Clydesdale Bank
The Co-op
CoverMore
Direct Line
Esure
ETA
First Direct
Flexicover
Fogg Travel
HSBC
LV
More Than
M&S Bank
Now I Can Travel
Post Office
Puffin Insurance
Sainsbury’s Bank
Santander
Sheilas’ Wheels
Spectrum
TopDog
Virgin Money
Yorkshire Bank
Zurich
Firms that have changed their terms
AllClear – no new cover for coronavirus-related claims
Axa – no new cover for coronavirus-related cancellation
Allianz Assistance UK – from 12 March, no new cover for coronavirus-related claims
Columbus Direct – from 13 March, no new cover for coronavirus-related claims
Debenhams – from 16 March no new cover for coronavirus-related claims
Direct Travel – from 17 March, no new cover from coronavirus-related claims
Ergo is still selling annual policies, but with exclusions regarding any epidemic or pandemic as declared by WHO
Holidaysafe is still selling travel insurance, but policies now include a Covid-19 specific exclusion
InsureandGo – no new cover for coronavirus-related incidents
Nationwide – from 18 March, new policies won’t cover coronavirus
NFU is still selling annual policies to existing home insurance customers but has stopped the sale of single-trip policies
Saga – from 13 March, no new cover for coronavirus-related claims
Staysure – no travel disruption extension for new customers
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Can my travel insurance company change its terms?