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Is Travel Insurance Included In Your Packaged Bank Account?

Packaged bank accounts have proven to be very popular, with consumers often taking advantage of different insurance products included with their account. But travel insurance comparison site, Compare Cover, is warning account holders to double check their packaged account travel insurance before jetting off.

Compare Cover analysed the packaged bank account market and found that, while many offer worldwide travel cover as part of their paid-for accounts, many have caveats when it comes to actually using the cover. For example, some accounts limit the amount of cover they have and most have an upper age limit when it comes to who they’ll cover. 

The TSB Silver account includes travel insurance, but only for people under 64-years-old, while other accounts extend their cover until customers celebrate their 80th birthday. 

Simon Williams, Head of Travel at Compare Cover, said, “Packaged bank accounts can offer a range of benefits to customers, including not having to shop around for a policy and the peace of mind that you are continuously covered, but as with all insurance products, the devil is in the detail. Before setting off, travellers with packaged account insurance need to be aware of the limitations of their cover - including whether they even have it. It’s essential to have the right cover for your needs.

Travel insurance attached to a bank account may not cover you if you’re older, have a pre-existing medical condition or if you’re going on a cruise or winter sports holiday. Similarly, if you are going on a golfing holiday or a business trip, some policies included with bank accounts won’t cover loss of or damage to the equipment you take.”

Simon added, “If you’ve fallen ill since opening the bank account, ensure the policy will still cover you. If not, you may need to take out a separate policy.”

Many banks have been stripping out their package accounts in recent years, and in 2013 the Financial Conduct Authority said that banks should be informing customers if they are no longer eligible for the insurance bundled in its accounts.

Complaints to the FCA about packaged bank accounts increased sharply from 1,629 in 2013 to nearly 45,000 in 2016. It was estimated in 2014 that around nine million people held a packaged bank account*. These accounts offer bundled insurance, such as travel, gadget and breakdown as part of a monthly fee for the account, but holidaymakers are being urged to check that the travel insurance offered by their bank account offers the right level of cover before jetting off.

Simon continued, “Packaged back accounts can be great if you use the benefits offered and save money, but they could end up costing you more in the event you need supplementary cover. Adding additional travel cover to an existing packaged insurance product can cost more than taking out an entirely separate policy.

“Be bundle savvy, make yourself aware of any limitations, check the exclusions and make sure you have the cover you need when you need it. Then you can focus on enjoying your holiday!”

*FCA Thematic Review of Packaged Bank Accounts, October 2016. https://www.fca.org.uk/publication/thematic-reviews/tr16-8.pdf

Research conducted by Compare Cover on October 27th, 2017, included in the table below:

Provider

Annual cost

Travel insurance

Upper age for travel insurance

 

Nationwide Flexplus

£156

Worldwide annual inc USA (family) + winter sports

74

 

Barclays Travel Plus Pack

£186

Worldwide annual inc USA (family) + winter sports

79

                     

Barclays Travel Pack

£126

Worldwide annual inc USA (family)

79

                     

RBS Select Platinum

£204

Worldwide annual inc USA (family) + winter sports

69

                     

The Co-operative Bank Everyday Extra

£180

Worldwide annual inc USA (family) + winter sports

79

                     

NatWest Reward Platinum

£228

Worldwide annual inc USA (family) + winter sports

69

                     

Lloyds Bank, TSB, Bank of Scotland Platinum

£204

Worldwide annual inc USA (family) + winter sports

79

                     

Halifax Ultimate Rewards

£180

Worldwide annual inc USA (family) + winter sports

70

                     

First Direct First Directory

£180

Worldwide annual inc USA (family) + winter sports

69

                     

TSB Silver

£119.40

Europe annual inc UK (couple)

64

                     

Clydesdale/Yorkshire Bank Signature

£162

Worldwide annual inc USA (family) + winter sports

74

                     

RBS Select Silver

£144

Europe inc. UK (individual)

69

                     

NatWest Reward Silver

£144

Europe inc. UK (individual)

69

 

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