Martin Lewis has issued a major travel insurance warning for people planning their summer holidays, urging prospective tourists to purchase a policy as soon as they book their trip. The renowned Money Saving Expert returned to ITV today for a new episode of the Martin Lewis Money Show, offering sage advice for holidaymakers preparing for their summer breaks.
Key Advice: ASAB Rule
During the show, Lewis advised viewers to follow his "ASAB" rule for travel insurance, which stands for "As Soon As you Buy." He explained that many insurance plans cover bookings from the moment of purchase up until the day of departure, including any pre-vacation troubles. "The reason that you do that is that half of the cover that you pay for is in case something happens before you go on the trip," he said.
Lewis warned that regardless of when holidays begin this year, people should make this key move immediately after booking. He also addressed costs created by the situation in the Middle East and potential disruptions due to major international pressure before the peak season between July and September.
Real-Life Example
David, a viewer who wrote into Tuesday's show, shared his experience: "I booked flights to Australia for a family group of seven to travel in March next year. I took out insurance immediately. One of our group is now pregnant and can't travel on the dates planned. It cost £5,000 to reschedule which I'm happy to report the insurance have covered. Thanks Martin!"
Lewis noted that this advice helped David avoid a seismic £5,000 cost after booking a holiday to Australia.
Single Trip vs. Annual Policies
Expanding on his advice, Lewis explained that for single trip policies, holidaymakers should get ASAB insurance to cover specific future trip dates, such as August 10 to 17. Once the policy is bought and paid for, "you're covered if anything happens before you go."
For annual policies, there is more to consider. People with annual policies who have no cover should get a policy that is immediate from the booking, rather than their specific holiday date. Those with existing cover are already protected if it lasts until after the holiday ends. However, if cover concludes before the holiday ends, they are advised to get a new policy covering the remaining days.
Important Warning
Lewis cautioned that while ASAB is the "safest route," it is not foolproof. Some insurance firms may decide to cancel a policy if there is a serious diagnosis. He advised travellers who have already booked holidays but failed to take out travel insurance to "just do it now" and buy a policy.
