Buying Travel Insurance From Travel Agents

Travel insurance is a big market, with about 20 million people buying over £670m of travel insurance every year. Of this, just under half is sold by travel agents and tour operators and there has been growing concern from consumer groups that the industry was not selling travel insurance with a holiday as well as it should. For example, people do not realise they have to inform the agent of pre-existing medical conditions before taking out travel or holiday insurance.

Research published by the British Insurance Brokers Association found nearly three-quarters of holiday makers taking out travel insurance were not told if terrorism cover was included in their policy and consumer group Which? said holiday insurance sold by travel agents is often expensive and sold without the right questions being asked.

Last year its team of undercover researchers got holiday insurance quotes from travel agents, banks and insurers - and agents came out the worst. It found travel agents' policies were the most expensive and they did not fallow basic procedures. None of the agents did all they could to ensure policies were suitable and two-thirds failed to ask about medical histories or explain what the holiday and travel insurance policies covered.

Whilst travel agents are in an ideal position to sell travel insurance, people should be aware that a vast proportion of the premium they pay for travel insurance arranged by or through a travel agent or tour operator does not in fact go to the insurance company but is actually kept by the travel agent as commission. Travel agents can earn more than 40% commission when arranging travel insurance so it makes sense to shop around online and on the telephone to find a travel insurance specialist who offers cheap travel insurance and asks all the right questions ensuring you are not sold a cheap holiday insurance policy that isn’t suitable for your requirements.