Travel Insurance Post-Brexit Vote – What Does It Mean?
What does Brexit really mean for European travellers and what impact could it have on your travel insurance premiums?
According to ABTA 1 in 5 (19%) of us visit a doctor or hospital whilst we’re abroad. When you consider that the average cost of treatment for a broken bone in the USA is around £40,000 it’s understandable that some of us have concerns.
Whatever your point of view, the nation has voted and it looks like we’re leaving Europe. During the run-up to the vote, the remain campaign warned that a vote to leave could result in British holidaymakers having to pay out for any medical treatment required during travel in the EU as the free European Health Insurance Card would no longer automatically be valid.
Some people fear that this could lead to scenes like those in the USA, where health care costs are huge and there’s a reputation for treatment being refused unless you can show your insurance or credit card.
Don’t panic …yet
In the short-term, nothing changes. We’re still a member of the EU. But longer term, what effects could our leaving Europe have on the costs of travel insurance?
Can I still use my European Health Insurance Card (EHIC)?
Holding an up to date European Health Insurance Card means you can access the same level of healthcare as a resident in the European country you are visiting.
Although the nation has voted to leave, we’re still in the EU until we reach the still to be agreed date for the UK to officially leave. Until we pass this unknown date, considered by many to be at least two years’ away, your EHIC will definitely continue to be valid.
What about after we officially leave the EU?
It is possible that continued participation in the scheme will be agreed by the politicians as part of the deal that they broker for our exit, but at this stage, we simply don’t know. Maria Caulfield, MP for Lewes points out that Switzerland and Iceland are examples of countries outside the EU that use the EHIC scheme and that it might be considered to be is in the EU’s interest to continue the arrangement as the UK has given £5.8billion more to EU countries for medical costs than we’ve got back, but this can’t be guaranteed.
Could travel insurance costs rise after we officially leave?
If we leave the EU and don’t reach an agreement that allows continued use of the EHIC by British travellers, travel insurance costs are likely to increase in line with the increased number of payouts anticipated.
What about expats living abroad?
With the average costs for medical treatment running into £thousands, British holidaymakers will face two choices: take out sufficient travel insurance or risk paying for treatment yourself at rates that could be more than your annual wage.
Shop around for the best value deal
With or without EHIC, travel insurance can give you added reassurance that you can access any treatment you need, and be repatriated back to the UK if something does happen, whilst you’re away. Whether you’re planning a weekend in Europe or a year-long round-the-world trip, talk to us about tailor-made travel insurance.
We are the preferred partner of some of the UK’s biggest insurance partners and can help you find the best cover at the right price.
Get in touch with our helpful team now.