Financial technology company Revolut has launched a new pay-per-day travel insurance policy that uses the geolocation technology in your phone to trigger the cover, with prices starting from just 99p per day while you are abroad in Europe.
The new policy is seen as a more convenient alternative to arranging cover ahead of a holiday, but is it the future of travel insurance?
Revolut brands itself as a ‘digital challenger’ and has branched out into interesting financial areas including a cryptocurrency trading app. Now it has set its sights on the travel insurance market and provides policies underwritten by Thomas Cook Money’s White Horse Insurance brand.
The pay-per-day travel policy only offers medical and dental cover, so there’s no baggage or flight cancellation cover on the policy and it doesn’t extend to cover any pre-existing medical conditions. This basic level of cover is reflected in the cheap starting price of just 99p per day for holidays in Europe.
The policies have a £75 excess and include medical cover up to £15 million and dental cover of £300 (only for immediate pain relief).
It also includes emergency rescue, additional transport and accommodation costs for the policyholder and one family member or friend as well as any children that have to remain behind. The policy also pays out for return travel if you have to arrange a different return flight from the one you have booked.
Policyholders can activate their cover via the app when abroad, or just leave the geolocation tracking to kick in and start automatically when you leave the country. The limit for cover is 40 days abroad.
The app will use your smartphone to pinpoint your location and automatically switches cover on when you are abroad, with different fees according to where in the world you are.
Users can also upgrade cover for winter sports or add people on the go instantly through the app.
Cover via the app costs between 99p and £1.50 per day, depending on your age and where you go on holiday. While those aged between 71-84 will pay considerably more. For example, an 18-70 year old travelling to North America will pay £1.50 per day for cover, whereas someone aged 71-84 will pay £5.50 per day.
Cover kicks in when your mobile connects to the internet abroad to provide your location to Revoult. But what happens if your phone breaks, gets lost or stolen or runs out of power?
Once you are connected to the internet we will continue to cover you until you reconnect to the internet back in your home country – so if the worst happens to your phone, your insurance will remain active until you get in touch with us to cancel the insurance.
In order to meet our conditions of cover, you will need to connect to the internet (via WiFi or GPS) within the first eight hours of landing and make sure that you take your phone on holiday.