Will Single-Trip Travel Policies Offer Better Value In 2009?
According to a report issued by Mintel last month*, less people are likely to take out annual travel insurance policies during 2009. They predict that consumers will spend less on holidays this year, possibly taking fewer breaks – and will therefore perceive that they will get less bang for their buck with an annual policy.
Most people are smart enough to take out insurance before going on trips, rather than gambling and taking out none. So Mintel predict that there will be a noticeable trade-down to single-trip policies this year.
Traditionally here at Confused.com we’ve favoured annual policies (see our ‘Single Trip vs Annual Policies’ article). After all, they tend to cover you for all trips during the year – be they domestic or overseas, a weekend jaunt or a month-long jolly. However, increased competition in the single-trip sector could lead to hard-pressed consumers being offered better deals as the year ticks on.
And at Confused.com, what we favour above all else is good value.
Single-Trip and Annual Travel Policies: Is the Gap Closing?
One prediction is that travel insurance providers may begin to offer customers price-capped single-trip policies. So if any extra policies are taken out with the same provider during a year, then they will not exceed an agreed cost. This could cause the previously clear-cut distinctions between a single-trip and an annual policy to blur. This way whim travellers could still potentially get as good value as those who plan ahead. Hooray for spontaneity!
Another predicted knock-on effect is additional incentives being added to annual policies. If sales drop due to single-trip policy providers cranking the value up a notch, then annual policies will have to become more competitive still. Which could mean extra goodies. Providers realise that when times are tough, consumers are shopping around for value. So three cheers for the recession, which could well bring about some real bargains in this field!
Stay tuned to Confused.com – your handy travel companion – for more bargain updates as they unfold.
Need holiday inspiration? Check out our top ten destinations for 2009 here.
*Source: Mintel ‘Travel Insurance, Finance Intelligence’ February 2009
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