Refunds for Unused Travel Insurance During Coronavirus
Updated on Friday 1 May 2020
Amid the Coronavirus outbreak, many of the biggest travel insurance providers in the UK are offering pro-rata refunds to customers who want to cancel their policy.
You may be able to get some money back, but cancelling your travel insurance isn't a decision that should be made lightly, and there are a few things you need to consider before doing so.
Travel insurance refunds due to the Coronavirus outbreak
The Foreign and Commonwealth Office (FCO) has advised against all but essential travel “indefinitely” as a result of the Coronavirus pandemic, meaning that many holidays and trips will be cancelled in the coming months.
If your holiday has been cancelled and you have already sorted out a refund, or you aren’t planning on booking a holiday this year, you may not need the travel insurance that you have purchased.
If that is the case and you have a travel insurance policy that you can no longer use, you may be able to get a partial refund or amend the dates that your cover is valid for.
Keep the following points in mind:
-
You will need to request a refund, it won’t be issued automatically
-
Only cancel your policy if you are 100% sure you won’t need your insurance
-
Some providers will offer full or partial refunds (in the form of cash or a voucher), while others might only allow you to change your policy’s dates
What if you haven’t got a refund for a cancelled holiday?
If you haven’t had a refund for your holiday yet, you should hold off on cancelling your travel insurance policy, as you might need to call upon it later down the line if it proves difficult to get your money back. Despite the likely delays with refunds being processed, you are legally eligible to receive one.
Insurers that do not refund people for cancelled holidays due to the Coronavirus outbreak could face legal action from the Competition and Markets Authority, so be sure to seek help from the CMA if you are refused a refund.
You Might Like: What is Travel Insurance Cancellation Cover?
Who can claim a refund?
There are a few requirements that must be met before getting a refund, namely that you must not have already made a claim on your policy.
Each provider will, of course, have different refund policies, so it’s important that you check with them directly before deciding which course of action to take.
Your travel insurance will not provide you with any cover once you’ve cancelled it, so you should only think about doing so if you have no holidays booked for the near future and if you’ve already organised a refund on any trips that have been cancelled.
If you’re thinking about booking a trip anytime soon, then it’s worth keeping your travel insurance active as it may be difficult to purchase cover during the Coronavirus crisis, with a number of insurers refusing to offer insurance to new customers.
Note: If you took out a policy within the last two weeks (14 days), then you are able to cancel your travel insurance under ‘cooling off’ legislations as usual, but bear in mind that insurers may charge an admin fee.
Which travel insurance companies are offering refunds?
Cancellation policies differ between each travel insurance provider, so you’ll need to check with your insurer to find out whether or not you can cancel your policy and get a refund.
The type of insurance you have – annual or single-trip cover – can also have a bearing on the chances of getting your money back.
Here’s how the main travel insurance providers in the UK are handling refunds for unused annual policies:
|
Annual Travel Insurance |
|
|
Provider |
Can you get a refund? |
|
Admiral |
Yes (pro-rata) |
|
Allianz Assistance |
No |
|
Aviva |
No |
|
Axa |
Yes (pro-rata) if bought before March 13th |
|
Churchill |
Yes (pro-rata) |
|
Co-op |
Yes (pro-rata) |
|
Direct Line |
Yes (pro-rata) |
|
More Th>n |
No |
|
Saga |
Possibly (case-by-case) |
What does pro rata mean?
A pro-rata refund means that you’ll get money back for the number of days left on the policy, but it can differ between providers, depending on their terms.
Here’s how travel insurers are handling refunds for unused single-trip policies:
|
Single-trip Travel Insurance |
|
|
Provider |
Can you get a refund? |
|
Admiral |
Yes (pro-rata) or change dates |
|
Allianz Assistance |
Yes (full refund) or change dates |
|
Aviva |
Yes (pro-rata) |
|
Axa |
Yes (up to 65%) if bought before March 13th |
|
Churchill |
Amend dates up to 550 days from start date |
|
Co-op |
Possibly (case-by-case) |
|
Direct Line |
Amend dates up to 550 days from start date |
|
More Th>n |
Yes (full refund or amend dates up to a year) |
|
Saga |
Possibly (case-by-case) |
If you have an unused policy that you are certain you won’t use in the future (you have no pending trips, you don’t plan on booking one in the near future, and you are not waiting on a refund for any cancelled holidays), then the best course of action may be to request a cancellation and apply for your money back.
How to get a refund on your travel insurance
You will need to contact your travel insurance provider if you want to find out whether or not you’re entitled to a refund.
The best method to do this depends on your provider – some will be easier to contact via telephone, while others will be easier to reach online.
If you can, try to get in touch online via email or live chat, as phone lines are bound to be busier than usual.
If you’re going to apply for a refund, then you should do so as soon as possible because a large number of providers are offering money back on a pro-rata basis. This means that the earlier you do so, the more cash you are likely to get back.
Be sure to consider your options carefully before cancelling your travel or holiday insurance, particularly if you are waiting on a trip refund or you might travel in the next few months, when social restrictions are lifted.
For more information on related topics, take a look at our useful articles:
- Travel Insurance Cancellation Cover Explained
- Travel Insurance Basics
- Coronavirus: Only 1 in 10 Travel Insurance Policies Pay Out
If you have been affected financially by the Coronavirus, you may be interested in reading the following guides: