Travel insurers stop selling insurance due to coronavirus – the firms that will still cover you
TRAVEL insurers are changing their policies to exclude claims relating to coronavirus and some have stopped selling it altogether.
Insurer LV= confirmed it was halting the sale of travel insurance to new customers yesterday, while Aviva, Insure and Go, and Post Office have all made changes.
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LV stopped travel insurance sales yesterday but existing customers with a travel insurance policy from the insurer are not affected.
The insurer said instead of hiking the cost of policies, it was instead taking the measure to abandon sales temporarily to new customers.
On Monday Aviva removed its optional travel disruption cover, which would have allowed claims if the FCO advised against travelling to a country.
Insure and Go and Post Office have also changed their new policies to exclude any claim related to the virus. With both of these, policies bought before 23.59 on 11 March are not affected.
The AA has also changed its website and it is no longer possible to buy travel insurance for France, Italy, or Spain although the insurer has not yet confirmed a change to its policies.
One of the reasons insurers are making changes is because on Thursday the virus was declared a pandemic.
A spokesperson from Post Office said: "With regards to our Extended Travel Disruption (ERGO Policies), or Natural Catastrophe and Terrorism, Enhanced Trip Disruption (Collinson Policies) we are now advising customers that there is no cover provided for any claims related to COVID-19 for policies purchased after 11th March 2020.
"This was the date when it was confirmed that Covid-19 is a Pandemic by the World Health Organisation.
"Customers can still purchase the additional cover, but if they purchase it after 11 March, they are not able to make a claim related to COVID-19."
LV currently has more than 5 million customers. It sells a range of general insurance policies including travel, home, and car insurance.
In a statement it said: “In light of the significant impact that coronavirus is having globally, LV= General Insurance has taken the difficult decision to pause the sale of travel insurance to new customers.
“Whilst LV=is a major motor and home insurer, we are a small travel insurance provider and it's important for the long-term benefit of all our customers that our exposure to this market remains at a sustainable level for the overall business.”
Existing customers with LV= will not be affected and it says if they want to renew a policy, they will still be able to.
Following the changes earlier this week, new customers who take out a travel insurance policy with Aviva will now not be able to claim if their trip is cancelled because of coronavirus.
In a statement on its website it said: "Our travel insurance will not cover you if you need to cancel or abandon your travel plans if The Foreign & Commonwealth Office (FCO) advises you not to travel, for example where the FCO advise against all but essential travel to an area affected by Coronavirus.
"This is because we are currently not offering the optional Travel Disruption and Airspace Closure covers.
"Please carefully review your cover to ensure that it meets your needs."
Customers with an Aviva policy without the add on, or new customers buying a policy, will only be covered for non-recoverable costs including if the flight is delayed for more than 24 hours or cancelled.
Brian Brown, Consumer Finance Expert at Defaqto, said: "The coronavirus issue is rapidly developing and has caused many travel insurers to reconsider their policies.
"We believe the changes seen so far are only the beginning, and it’s very likely that over the next few days or weeks we will see other insurers follow suit and begin to restrict or remove cover for coronavirus claims altogether.
"Our advice for people travelling this spring/summer is to check their existing policy NOW to make it covers them for cancellation due to FCO advice, and if they are not covered they should buy insurance from another insurer while they still can."
Most insurers have said the changes are temporary, although it’s unclear how long it will last for.
The situation is changing all the time as the outbreak worsens.
There are now more than 125,000 cases confirmed around the globe and yesterday the UK confirmed its eighth death because of the outbreak.
Generally, if you have a holiday booked to an affected country, you should receive a full refund if you can't travel from the airline or holiday company you booked with.
Most insurers are saying customers should speak to their travel providers in the first instance to see if they can cancel or rearrange their trip.
One exception is if you already have a pre-existing health condition.
In these instances, customers may be able to get a refund from their insurer provided they have already declared the illness and they have a note from their doctor saying it's unsafe for them to travel.
But what you are offered, and if you can get a refund, will depend on the company you booked with, or with your insurer.
Which insurers will cover you
The Sun has approached all the major insurers to find out how their policies have changed.
We will be updating the following information when we know more.
- AA - Any policy will cover cancellations for trips due to depart on or before 30 April, if there is official advice not to travel. However, when we checked it wasn't possible to buy a new insurance policy if visiting France, Spain or Italy.
- Admiral - Customers will be covered if they bought a policy prior to the FCO issuing warnings against travel. They may also be able to get a refund for some costs if a GP has confirmed that their age or health conditions compromise travel. The insurer says all cases are looked at individually.
- Aviva - If customers have a trip booked in the next seven days to a country where the FCO is advising against travel, or all but essential travel, and they already have the optional 'travel disruption' add-on they can receive a refund. For customers with a standard policy, which is now the only policy available to buy from the insurer, only non-recoverable costs will be refunded. For those who are high-risk medically, the insurer said it will look at each circumstance on its own merits but generally speaking if the FCO hasn’t advised against travel, then this is not covered.
- AXA - If customers aren't able to make alternative arrangements for their trip with the airline or holiday provider, then it will issue a full refund. The insurer says it usually won't offer refunds except if the FCO advises against travel but it is lifting this ban for two months in relation to the coronavirus, to all policyholders. It says if you're in a high-risk medical group it will consider claims on a case by case basis.
- Direct Line and Churchill (this applies to Nationwide customers too) - Refunds will be given to policy holders if their trip is cancelled due to a travel ban. This only applies if the FCO advice not to travel to the country, or to avoid all but essential travel, wasn't in place when the policy was bought, and the trip is within 28 days. Where a customer’s pre-existing health condition has already been declared and cover confirmed, and they have evidence from their doctor advising against travel, claims for cancellation will be considered up to £5,000 per person.
- Insure and Go - Existing customers are able to claim for a refund if they have a trip booked to a country which has FCA warnings in place. But if the policy was bought after 23.59 on 11 March they will not be able to make any claim relating to the virus.
- LV= - You can no longer buy travel insurance from LV but existing customers will be offered a refund if flights are cancelled to areas where warnings against travel have been issued. Customers who are high risk and have a note from their doctor to say they can't travel will be able to get a refund.
- Marks & Spencer - The provider will pay out for all trips cancelled due to an FCO warning, including "all but essential travel", if the costs can't be recovered from your holiday provider. It applies if the trip is within the next 31 days. If you are in a high-risk medical group, it will look at cases individually.
- More Than - Travel insurance will cover cancellation for customers’ flights and accommodation if the FCO advises against all (but essential) travel to their intended destination. This will apply if they cannot get a refund or rebooking through their travel or accommodation providers
- Post Office - Customers with a policy bought before March 11 can make a claim for some non-refundable costs, if the FCO’s travel advice to the area you were due to go to changed to a ban or "all but essential travel" after you bought the policy. Any policy bought after March 11 will not include cover for the virus.
- Virgin Money - If your airline or holiday package provider won't issue you a refund for trips cancelled due to an FCO warning then you can claim through your insurance.
What should you look for in a good travel insurance policy?
TRAVEL insurance policies can vary a great deal, but here are some 'must have' features you should look out for from the Money Advice Service.
- Medical expenses - A good policy will give cover of £1million or more for travel in Europe and £2million or more for the USA
- Repatriation service - The costs of getitng you back to the UK for medical reasons should be covered automatically by your policy
- Cancellation and curtailment - A good policy will cover you for £2,000 or more if you have to cancel or shorten your holiday
- Missed departure - Covers additional accommodation costs and travel expenses up to £500 or more if you miss your flight due to circumstances out of your control
- Delay - You'll usually be covered for £250 or more if your travel plans are delayed due to circumstances out of your control
- Baggage cover - Covers you if your baggage is lost, damaged or stolen. Look for policies that have cover of £1,500 or more.
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