How would Brexit affect travel insurance?

Anna Sant, travel insurance expert at MoneySuperMarket, comments on how travel insurance may be affected once the UK leaves the European Union (EU):

“Brexit remains the hottest of political hot potatoes, with uncertainty and controversy surrounding the UK’s proposed exit date of 31st October 2019. Given the turmoil, it’s challenging to predict what would happen post Brexit but for the time being, anyone travelling to EU countries should make sure they’ve got the right travel insurance cover and know the rules about passports and driving abroad."

“Taking out travel insurance when you book your holiday also means you’re covered if you need to cancel - whether that’s due to illness or injury, a family bereavement or another emergency. A third of all travel insurance claims are from people cancelling before they go away, yet 38% of customers on MoneySuperMarket only buy their insurance on the day or the day before they travel.”

MoneySuperMarket looks at what Brexit could mean for UK travellers:

• Travel insurance: Will you be covered in the event of Brexit-related travel disruption? And will your insurer pay out for cancelled accommodation or trips? This depends on your provider and the level of cover you have within your policy. MoneySuperMarket offers ‘optional features’ for extra benefits to your policy. These can include scheduled airline failure (i.e. cover against the financial failure of any scheduled airline), end supplier failure (i.e. a travel company going into administration) or airspace closure. This provides compensation for the cost of unused travel or accommodation following the closure of airspace, airports or ports on the day of travel.
• Medical cover post European Health Insurance Card (EHIC): If the UK leaves the EU without a deal, the EHIC is unlikely to be valid so it will be even more important to have travel insurance to cover the cost of medical treatment abroad. Even if EHICs remain valid, it’s always best to take out travel insurance as well because this will cover you for a wider range of costs, including repatriation, which aren’t included in the EHIC arrangements.
•  Passports: Should we leave the EU, you will still be able to use your current passport. However, you will not be allowed to use the EU passport channels at airports, so allow enough time to factor in bigger queues at border control.
• Driving abroad: According to the Association of British Insurers (ABI), you will need to apply for a green card if you wish to drive within the EU. These are provided by your insurance company, so you will need to request one in advance of travel. The ABI suggests that you should try to apply at least one month before you travel to avoid any delays. Many insurance companies will issue green cards free of charge, but some may levy an admin fee.
•  Car insurance: You should check with your car insurance provider that your policy continues to provide your preferred level of cover when you are driving abroad. All policies provide a minimum of third-party protection, but you may have to pay extra if you want comprehensive cover while overseas.
•  Pets: Pet passports are unlikely to remain valid in the event of a no-deal Brexit, so you will need to get a health certificate for your pet if you are taking it to Europe. Contact your vet as far in advance of your trip as possible to sort this out (the government suggests four months before you travel).
•  Currency: Exchange rates fluctuate daily and it’s hard to gauge the best time to change your pounds into euros. If you’re worried about rate changes, you could consider buying some currency now and the rest later, or closer to your holiday. Another option is a pre-paid currency card, which is safer than carrying cash, or a credit card that won’t charge you for overseas spending. Make sure you check the terms and conditions before applying.

Source: TravelDailyNews international