Warning on travel insurance from travel agents

Travel insurance policies purchased from travel agents are more expensive and not sold according to the correct procedures, new research shows.

Undercover researchers from Which? obtained travel insurance quotes from a range of companies including travel agents, banks and insurers.

The survey shows that travel agents' policies are generally more expensive and that none of them followed all three basic procedures to ensure policies are suitable.

Nearly two thirds of travel agents did not ask about customers' medical histories and most did not explain what their policies covered. None of the agents surveyed pointed out what the policies excluded, making it more likely that people would be sold an unsuitable policy.

Banks and insurers performed better than travel agents according to the researchers, but could still do better.

However, Which? points that people sold an unsuitable policy by banks and insurers can go to the Financial Ombudsman Service for help because they are regulated by the Financial Services Authority – but travel agents are exempt from this regulation.

"Buying holiday insurance from a travel agent may seem the easy option, but you'll pay more and you don't have the same protection if you're sold an unsuitable policy," said Neil Fowler, editor of Which?

"There's no reason why travel agents should be excluded from insurance regulation. People should have the same protection and peace of mind on holiday regardless of where they've bought their travel insurance."

Keith Betton, head of corporate affairs at the Association of British Travel Agents said the research, which was carried out at four branches of First Choice, Going Places, Thomas Cook and Thomson along with ten independent agents, was "pretty unrepresentative".

He agreed that some of the policies sold by larger travel agents were expensive, but added that many independent travel agents "sold insurance at good prices".

The research also did not recognise the "huge amount of training" being done by travel agents to ensure that insurance policies were sold properly.

Which?'s tips for getting the right cover

Declare any information that could lead to a claim

Check cover limits and exclusions

Watch out for excesses

Read the small print

Tell the insurer about any pre-existing medical conditions affecting you or anyone else on whom your holiday plans depend XXX