- One in four believe EHIC replaces travel insurance for holidays in EU countries
- But Brexit vote will encourage more to buy travel insurance
Not a replacement for travel insurance
More than one in four tourists assume the free European Health Insurance Card provides enough cover for holidays in the European Union, according to a new poll by Consumer Intelligence.
Some 26% of tourists believe the EHIC - which the UK Government warns is not a replacement for travel insurance - will cover them rising to 36% among 18 to 24-year-olds.
Average travel insurance premiums for trips to Europe are currently £16 and have fallen around 12.4% since last year, according to Consumer Intelligence’s Travel Insurance Price Index which monitors the five most competitive travel policies across comparison websites and direct insurers.
The future of the EHIC is in doubt
The future of the EHIC – which allows holidaymakers to receive medical treatment for free or at reduced costs in EU and European Economic Area countries - is in doubt following the EU Referendum vote to leave.
Holidaymakers more likely to buy insurance after the Leave vote
However, the Brexit vote could boost sales of travel insurance – the research shows 44% of holidaymakers say they are now more likely to buy insurance after the Leave vote.
Consumer Intelligence’s research among people who have gone on holiday in the past six months shows 30% did not buy travel insurance and 14% say they are happy to go abroad uninsured.
Risks from being uninsured and from being underinsured
Around 21% of those who do not buy insurance say they are happy to take the risk while 25% say they didn’t bother as they were only on a short trip.
But the research shows there are risks from being uninsured and from being underinsured – around one in 10 (11%) of holidaymakers have found their insurance was not good enough while 7% have regretted going on holiday uninsured.
Policy excesses or exclusions and not having enough cover for theft were the major issues for holidaymakers who said they were underinsured.
Ian Hughes, Chief Executive of Consumer Intelligence said:
“Relying on the EHIC for travel insurance on holiday in the European Union is a major risk particularly when it could be under threat.
“The reality is that travel insurance premiums have fallen considerably in the past year and while people are tempted to save money by taking a risk on insurance it does not really add up.
“If the EHIC scheme is scrapped or not renegotiated that should concentrate minds and there is some indication that people will buy insurance if it goes but the risks of going uninsured or underinsured are already clear.”
It is now seen as important to have cover following recent terrorist attacks
Consumer Intelligence’s research found 63% of holidaymakers now agree it is important to have cover for disruption following terrorist attacks.
Research conducted between August 1st and 3rd 2016 among 1,046 adults aged 18-plus who have been away on holiday for more than five days in the past six months.
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This survey was conducted using our online market research community, Viewsbank.
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