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Unused Packaged Account Perks Cost Britons Up To £137m A Year!

Posted in: Products Last updated: 17 Mar 2007

Britons waste up to £137million1 each year on the cost of packaged accounts offering travel insurance, according to Engage Mutual, which has just launched its new low cost travel insurance offer to help Brits beat high street banks’ charges.

Following criticism of high street banks for selling customers unnecessary ‘free’ extras, including travel insurance, as part of expensive packaged accounts, calculations by Engage show that the difference between paying for packaged bank accounts and shopping around for low cost travel insurance could save holidaymakers an average of £30 a year, with some saving up to £2702.

Karl Elliott, Marketing Director of engage Mutual Assurance, comments:

“Packaged account holders are paying a high cost for cross-sold financial products, which many of them never use. In launching our new low-cost travel insurance, Engage Mutual is offering our customers a simple product which, with a little financial planning, could save them money

The money they save could even mean that they are able to afford to go spend a little longer in duty-free”

Key figures:

  • One in nine of the UK’s forty million current account holders pay a monthly fee for packaged accounts, costing an average of £10.04 a month, or £120.48 a year1
  • 51% of these packaged accounts include travel insurance, but 64% of these packaged account holders say they never use the travel insurance on offer
  • 23% of packaged account holders don’t use any of the “free” perks on offer1

Engage Mutual Travel Insurance

Engage Mutual has formed a new partnership with Travel Protection Services Limited, underwritten by UK Underwriting Ltd to offer customers Engage Mutual Travel Insurance.

Engage Mutual Travel Insurance includes single trip and annual multi-trip policies. Parents can also include up to four children up to age 17 free of charge. A non-family child policy attracts a 50% discount on adult rates up to age 17.

Engage Mutual Travel Insurance Costs for 18 to 64 year olds:

 Duration  UK  EU  WWexc USA & Canada  WW inc USA & Canada
 Up to 3 days  £2.99 £5.49   £13.81  £16.74
 Up to 5 days  £4.50 £7.51  £17.61  £19.49
 Up to 10 days  £6.00 £13.50  £24.05  £27.10
 Up to 17 days  £8.00  £18.20  £29.40  £29.26 
 Up to 24 days  £9.00 £20.60  £32.31   £36.40
 Up to 31 days £10.50  £25.09  £41.49  £46.20
 Annual Multi-trip - Individual  N/A £36.20   N/A   £45.10 
 Annual Multi-trip - Couple/Family  N/A £72.40   N/A   £90.20

 

Engage Travel Insurance and costs, terms and conditions are available at www.engagemutual.com or by calling 0870 168 0826. Outline costs for 18 to 64 year olds are shown below.

Engage Travel Insurance and costs, terms and conditions are available at www.engagemutual.com or by calling 0870 168 0826. Outline costs for 18 to 64 year olds are shown below.

Discount to watch the Catalan Dragons

Engage Travel Insurance includes a low-cost, minimum cover option for fans wishing to travel to watch their team play the Catalan Dragons in the Engage Rugby Super League in France. Super League supporters can get travel insurance to watch their team take on the Tigers for as little as £3.30 each, or £8.25 for a family (2 adults and up to 4 children).

 

 

 

 

1 There are 4.4million paid-for packaged bank accounts in the UK, costing an average of £120.48 a year. Of these, 51% (2,244,000) include travel insurance, but 64% of holders don’t use this benefit. 26% (1.144m) of holders don’t use any benefits, therefore wasting £137.8m. Figures derived from uSwitch release, 26 September 2006

2 The average packaged bank account fee is £120.48 and the maximum is £360 per year – see source for footnote 1. An annual multi-trip world wide travel insurance policy from engage Mutual Travel Insurance costs £90.20. The average saving for a packaged account holder is therefore £30 pa. Someone with a higher-charging account could save up to £270 a year.