Travel insurance is about to get more expensive

Travel insurance rates are poised to spike – increases of more than 20 percent might even happen. According to travel insurance company P J Hayman, look for other changes, too, like restrictions on age and details around medical conditions. Says Peter Hayman, of the company that bears his name:

“With the summer holidays now over, travel insurers are now revising and renewing their schemes. This is likely to impact consumers as a combination of currency disadvantages on claims costs and accumulated large losses have ensured that insurers are pushing up costs for scheme holders and brokers.”

This follows three years of travel insurance rate declines, because of comparison websites, tougher negotiations and “prices and age limits that do not make underwriting sense.”
Prices are set to jump, according to Hayman, because of low interest rates, claims accumulation and pressure on travel insurance companies to meet financial objectives.

Hayman tells Postonline:

“These changes will take some time to filter through to the public. Many will coincide with the increase in insurance premium tax on travel insurance from 17.5% to 20% on the 4th January 2011; a rate that will be 14% higher than for other types of insurance such as motor and household.”

[photo by Tracy O via Flickr]

If easyJet goes under, you’re not screwed

If easyJet were to go insolvent before you could take a package you’ve booked online with the company, fear not: you’re insured. Since the beginning of the month, the European low-cost carrier has arranged with credit protection company International Passenger Protection to make sure customers don’t lose out if the airline as a whole takes a nose dive.

According to Paul Phillips, group treasurer of easyJet:

“We pride ourselves at being one of the leading and most innovative airlines in the UK and, despite our strong financial standing, we recognise that we have important legal obligations to adhere to under the UK Package Travel Regulations. We acknowledge our continued duty to give passengers financial peace of mind when buying travel packages online from us.”

Paul Mclean, director at IPP, said:

“The travel industry and travelling public have suffered a surge of financial collapses in the last two years and headlines of passengers losing their holidays are becoming commonplace. We are delighted to be working with easyjet to ensure its continued compliance with the relevant consumer protection legislation in place.”

So, if nothing else, you have one less worry when booking our next trip!

[photo by WexDub via Flickr]

Short skirts, low necklines drive drivers to crash

The end of summer is fast approaching – can you believe it’s August already! – and that means a last-minute road trip is bound to be on your list. Well, if you’re planning to load the car, thrown in some music and put the pedal to the metal, it pays to keep your eyes on the road, especially for those of us who happen to be men. There is danger everywhere, especially above the knee.

A study by an insurance company in the United Kingdom, Sheilas’ Wheels, found that men’s car accident rates are about as high as “women’s summer hemlines,” according to an article on MSNBC. Twenty-nine percent of confessed that short skirts and low-cut tops make traffic, stop signs and other aspects of driving without killing someone less appealing (what would you rather look at?). I’m still wondering what the other 71 percent were looking at.

As usual, the fact that “[m]en are more visually oriented” is proffered as the reason why we are distracted more easily than women, on the road or anywhere else. And, testosterone gets some blame, too.
Said a spokesperson for Sheilas’ Wheels, which specializes in selling auto insurance policies to women:

“Men are significantly more likely than women to claim during the summer months – often as a result of wandering eyes.

“We urge all motorists to keep their eyes on the road – regardless of outside distractions – and keep cool behind the wheel,” Sheilas’ Wheels said.

I suspect this will be particularly tough if you’re road tripping out to the beach. My advice: take a drive out to a buffet. Keep your eyes off the hotties and on the road!

[thanks, @BrokingLiz, photo by nesta eber]

Dutch insurance firm offers world cup finals travel insurance

Unlike, say 98% of Americans, the Dutch are completely in love with football- so much in fact, that many of them would rather cancel their summer vacation than risk being stuck at a foreign camping site without a TV.

So, for those travelers, Dutch insurance firm “Europeesche” has introduced the World Cup Finals Cancellation Insurance. For a fee of 1% of the price of the vacation, plus the cost of a regular trip insurance package, Dutch footie fans can cancel their trip if their team makes the World Cup finals.

The insurance even covers the cancellation of partial trips – so if you are on vacation in Turkey, and the Dutch team reaches the finals, the coverage will pay for any days you missed and any expenses for getting you back home as soon as possible to watch the match. Yes – football is that important to them.

[Image from: AFP/Getty Images]

Travel insurance fraud means jail time

So, is there such a thing as harmless travel insurance claim that isn’t exactly accurate? Well, that’s a good question for Shaun Taylor.

The Leeds resident was accused of making a whopping £40,000 in claims that affected eight insurance companies over five years. He got caught. Taylor received a suspended six-month prison sentence for 19 travel insurance fraud offenses … in addition to some community service.

According to Cath Williams, claims company Cunningham Lindsey’s complex technical services director, “Our operation was about collating a multitude of data covering 38 separate travel claims and unearthing the common elements between them, which enabled us to assist the police in building the case for a criminal prosecution.” Williams continued, “It’s important for would-be fraudsters to understand that while they may believe insurance companies to be a soft target, there are ways and means of spotting and proving their activities which can land them in court.”

Think you can game the system? Consider how a pair of tight handcuffs can change your perpective!