According to new research from UK consumer body Which?, customers could benefit from paying for travel cover via their bank account.
The company analysed 34 packaged accounts to see how they compared with buying the insurance they offer separately, and found that with more than half of the accounts it looked at, the value of the cover on offer outstripped the annual cost of the account.
Which? found that Nationwide’s FlexPlus account stood out, offering around £252 for someone aged under 65 and £294 for someone aged 65 to 69 in worldwide travel insurance, breakdown cover and mobile phone insurance for £10 a month.
In terms of being worth more than consumer spend, Clydesdale/Yorkshire Signature Current Account came second on the list, followed by Barclays Bank Current Account with Travel Pack.
According to Which?, packaged bank accounts can be good value for consumers, providing they make use of the benefits they are paying for. The company stated that infrequent travellers who go on holiday no more than once a year would be better off buying standalone cover.
It advised that important questions for consumers to consider are: How many of the benefits do they really need? Does the insurance give them the right amount of cover? Can they get any of the benefits cheaper elsewhere? If the account offers an interest-free overdraft, are they currently paying overdraft fees and charges that are higher than the cost of the fee-charging bank account?
Which? also said that it is worthwhile for consumers to check whether the travel insurance within a packaged account will cover any medical conditions they might have, which it states can drive the cost of standalone travel insurance sky high.