Before going on your travels it can be tempting to search for a standard policy at the cheapest price available as you are probably busy organising a variety of things in preparation for your departure.
While it’s always great to get a good deal, without reading some of the fine print you could be in for a bit of a surprise when trying to make a claim on your policy.
According to Travel Insurance Explained, there are quite a high number of Brits that fall into this trap.
In a recent study that looked into just how much people know and understand about travel insurance policies, it was found that a huge 75% of British travellers expect a standard travel insurance policy to cover them for lost or stolen gadgets, such as phones tablets and cameras.
What is possibly the most surprising statistic of this research is that 59% of respondents don’t understand how the payout for claims on lost belongings is calculated.
The truth behind it is that if your gadget is more than 6 months old you’ll only receive the second-hand value for it, were to be lost or stolen, this means that you could potentially be underinsuring your possessions by picking a standard policy.
It seems that some consumers are expecting the opposite, with 18% of survey participants expecting a full refund on the price they originally paid and 27% expecting the original price they paid, minus any excess.
It is possible for travellers to take out extra insurance to cover items such as phones and laptops, however, it is vital that you check the single item limit as these policies will only cover you up to £500 per item.
Fiona Macrae, of Travel Insurance Explained, spoke on the results of the survey, stating that “our research highlights just how many are people are unclear as to what they would get back from their insurer if their phone, tablet or favourite electronic gadget, was lost or stolen while on holiday.
“Most insurance companies will not replace an item on a new for old basis, especially if the item is more than six months old. Some will ask you to pay your excess and then provide you with a replacement of a similar age and model, whilst other insurers will give you a cash settlement after taking in account the age, any wear and tear and then deducting your excess.”