It has been claimed that travel insurance premiums are set to increase by more than 20% in the new year as a result of a rise in VAT and the number of large losses that are being incurred by insurers, with the new year marking an increase in insurance premium tax on travel insurance from 17.5% to 20%.
Insurers are likely to put more restrictions on age and may make it harder for those with pre-existing medical conditions to find cover, which would affect a wide range of holidaymakers.
Our advice for getting the best travel insurance policy is to shop around and research the best policy for you. If you travel a lot it may work out to be more cost effective to buy an annual policy. Whatever you do, make sure you do take out a travel insurance policy, as the cost of not being insured far outweighs the cost of the policy.
For more tips and advice on travel insurance visit http://www.carrentals.co.uk/rts_advice_papers/travel_insurance.pdf