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Travel cover payouts hit £1m a day: how to find the best insurance

Insurance payouts reach highest level since 2010, as medical claims hit £200m

Britain’s holidaymakers received travel insurance payouts worth £1m a day in 2016, with more than half of all claims paid out for medical expenses while abroad, new research has revealed.

Figures published the Association of British Insurers (ABI) show that travel insurers paid out close to £370m last year, the highest since 2010.

Around 480,000 travellers made successful claims. In total, insurers paid out claims for medical expenses worth £199m, with the average medical claim costing £1,300. The average cancellation payout was £816, while the average payout for lost baggage and travel money was £204.

In spite of these substantial costs, a separate survey from the Association of British Travel Insurers (ABTA) suggests that one in four people risked going abroad without travel insurance in the 12 months to May 2017.

How to find the best travel insurance

The average cost of an annual travel insurance policy in 2016 was £37, according to the ABI. Single-trip policies are even cheaper, and usually the best choice if you’re only travelling once or twice a year.

Still, the cheapest policy may not always be the best option for you. Previous ABI figures suggest that almost one in seven travel insurance claims are unsuccessful.

Many of these will due to people buying travel insurance that didn’t cover their needs. Our travel insurance reviews will help you find the most suitable policy at a reasonable price.

Best ways to spend money on holiday

It’s not just travel cover where some research and smart steps can help you get a better deal.

There are many debit and credit cards that don’t charge extortionate fees for overseas use. These cards provide one of the most efficient ways to spend money while travelling abroad.

However, a new poll from uSwitch suggests that one in four people have their credit card blocked while they use it abroad. More than six in 10 (61%) notified their bank that they were heading overseas.

To avoid having to deal with this, consider exchanging your cash at a competitive currency exchange provider or use a prepaid card.

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