The number of holiday makers in the UK, has risen to its highest levels, according to a report produced by Defaqto, causing a decrease to the cost of travel insurance premiums.
Trips abroad have increased by 17 per cent between 2002 and 2006, with more holiday makers, travelling to further locations. With this travel insurance premiums have decreased.
In the report the costs of over 235 single trip and 245 annual travel policies, were analysed and looked at how premiums have moved since 2002. The only area where premiums have increased in the past year was for annual travel cover to the USA. However premiums elsewhere has lowered since 2003, even with inflation taken into account.
Brian Brown, author of the Travel Insurance 2008 - Adapting to a changing world’ report said: “Competition in the travel insurance market is having a very significant effect on the price of travel cover", "The availability of a huge number of policies, many of them online, has driven many insurers to lower their premiums".
He also added: "Single trip cover to Europe can now be bought for as little as £6.00 for a week's holiday. There really should be no excuse for people to travel uninsured."
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