The travel insurance mistake that means holidaymakers pay double what they should

Going on several holidays a year means a multi-trip policy is often cheaper, yet holidaymakers turn their backs on these - Shutterstock

Customer confusion around travel insurance means holidaymakers are overpaying by millions of pounds and often do not understand what they are buying.

The problem is the difference between policies covering single trips and those that cover several trips a year.

Single trip policies are individually cheaper than multi-trip deals, but the latter will work out cheaper for frequent travellers.

Insurer Columbus Direct said many travellers waste money by buying several single trip policies in a year, rather than save with a multi-trip deal.

The insurer’s research found the average holidaymaker goes on three trips a year, and that 44pc bought travel insurance last year.

However, only 16pc of travellers buy multi-trip policies.

A quarter (26pc) said they would just buy the cheapest travel insurance, regardless of what it was.

A further quarter (22pc) said they buy travel insurance last minute so just choose the quickest option, often a single trip policy.

One in ten (11pc) travellers mistakenly thought buying an annual multi-trip policy means you must holiday in the same country all year.

The insurer found that a fifth of holidaymakers bought an annual multi-trip policy, then only went on one trip.

Adam Beckett, of Aviva, said: “If the customer isn’t sure how often they will travel in the next 12 months, or they have booked a holiday, but would also like a degree of flexibility in case they travel again, a multi-trip policy can be a good option.”

For the average holidaymaker, going on three trips a year, buying single trip cover each time would cost upwards of £53.

The same trips could have been covered for just £26.15 with a multi-trip deal.

Stuart Lloyd, of Columbus Direct, said: “Spontaneous trips and a desire for short term savings mean many of us buy the cheapest travel insurance available just before we jet off.

"While we feel good that we’re covered, the reality is this behaviour means many holidaymakers end up paying double what they should.”

Unusual or riskier holidays, such as skiing trips, require more specialist insurance and are better covered with single trip deals.

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