Travel insurance hikes hammer timeshare owners following Brexit and COVID

Inflation, COVID and Brexit mean travel insurance costs are at a record high, causing many holidaymakers to stay closer to home.

Most timeshare owners don't have that luxury.

Why insurance?

Travel insurance has always been advised by the government to provide peace of mind and protection when travelling abroad.

Brits already have emergency health coverage when travelling in Europe and a couple of other countries. All we need to do is remember to bring our EHIC (now replaced with the new GHIC) cards to benefit from the same emergency cover as a resident of that country. This protects us in the event of an accident, sudden illness or even, by arrangement, treatment for existing conditions.

Travel insurance provides a safety net in situations beyond the reach of the EHIC/GHIC cards.

In the USA for instance, government medical cover is minimal and costs can be astronomical. Something as unexpected as bitten by a rattlesnake (for example) can come with the extra sting of $100,000 in medical costs.

Preparation for the unexpected

Similarly exorbitant costs can be incurred to helicopter wounded skiers off a mountain, for sea or wilderness rescues, or in cases where medical repatriation is necessary.

Travel insurance goes a lot further than actual medical treatment. Depending on the policy it can compensate customers for missed flights, lost baggage and replace stolen possessions.

When we consider how difficult and stressful dealing with emergencies in a foreign country would be, travelling without suitable insurance no longer presents as a risk worth taking.

Record cost rises

Travel insurance premiums for Brits have risen by around 50% since the Pandemic.

Inflation, travel disruption and increased claims are cited as the main reasons for the increases. Prices vary depending on the level of cover but expect to pay up to 10% of the total trip cost on your insurance.

"10% might not sound much, but these extra expenses mount up," Ron Mitchum, a marketing specialist from Greenwich tells Timeshare Advice Centre. "Our holiday this year was going to be Florida. The whole vacation cost is already far more than when we first started planning it before the pandemic. This extra expense of travel insurance means we are now sadly forced to consider a less ambitious trip for this summer."

Holiday changes

Mr Mitchum's family is not alone in needing to rein in out of control holiday expenses. One third more Brits plan to holiday closer to home than before the pandemic. The cost of living crisis has also meant that many of us are planning to go on holiday less often. Some are planning breaks in Britain and long haul flights are another area where people plan to cut back.

Holiday spending money is even being targeted, with some Brits choosing destinations where their pound will stretch further.

47% of Brits will make changes to the way they travel to ensure they can still get away. 46% will go away for a shorter time to save money.

With money this tight, the 50% increase in travel insurance costs are just not manageable for large sections of the population Luckily the modern holiday marketplace is flexible enough that consumers can compromise and fine tune their holidays to suit their specific needs and resources.

Unless they are timeshare owners.

The timeshare trap

Britain's 600,000 timeshare owners don't have the flexibility to easily alter holiday plans.

Timeshare consumers typically buy what they think they will need for the future, having to plan sometimes many decades ahead.

They are then committed to paying for at least that level of holidays every year. Any changes to these plans, including ones that would normally save people money, generally come at considerable extra cost.

"There are exchange programs," explains Andrew Cooper, CEO of European Consumer Claims, "but they are expensive and ineffective. They can never compete for flexibility with the open travel market."

"Extra costs like the increase in travel insurance premiums mean that regular holidaymakers like the Mitchums can elect to make changes in their destination, the time of year they travel or even accommodation quality in order to save money.

"Any of those changes would actually cost a timeshare owner MORE money."

Freedom

For timeshare owners who are struggling with the increased costs of holidays, and want to be free of a burdensome membership, help is at hand.

Escape from the contract is generally possible with expert guidance. In some cases, where a resort ignored certain consumer laws, the member may even be eligible for considerable compensation.

To understand your options, get in touch with our team for a free, confidential consultation.