Money problems 'fail to put firms off offering travel insurance'

Tuesday, June 8th 2010

Britons appear to be valuing travel insurance as increasingly important when taking trips abroad, despite the number of journeys decreasing.

New research by Defaqto shows that despite a drop in the number of overseas vacations due to the financial situation, there has been a 9.5 per cent rise in the amount of policies on offer.

This has seen the amount of deals on the market surge from 930 to 1,018.

Brian Brown, head of research at Defaqto, said: "The fall in the value of the pound has not only made foreign travel more expensive for the consumer but has also increased the cost of claims that insurers have to pay overseas."

By expanding the number of policies, insurers may be widening the range of cover available to travellers.

Those heading on a foreign break may wish to take into account the advice of Abta, which last week suggested the cheapest travel insurance deal is not always the best option.