The vast majority of packaged current accounts offer travel insurance as part of the benefits package, market analysis has found.

According to financial research company Defaqto, 81 per cent of packaged current accounts come with travel insurance included in some form or another, across six different types, which might prove useful with the summer holidays coming up.

The study found that 75 per cent of packaged current accounts offer worldwide travel insurance, six per cent offer European travel insurance only, 60 per cent offer winter sports cover, 67 per cent include family travel insurance, 13 per cent include the accountholder and their spouse only, and one per cent cover only the accountholder.

Packaged current accounts also come with an array of other benefits, Defaqto found, such as commission free foreign currency exchange and travellers cheques, offered by 90 per cent of packaged current accounts, motor breakdown assistance is offered by 60 per cent of accounts, and 14 per cent offer European breakdown cover.

Access to priority airport lounges is offered by 38 per cent of packaged current accounts, while 67 per cent offer other holiday and travel discounts.

Commenting on the findings, David Black, banking specialist at Defaqto said: “Packaged current accounts generally offer a variety of benefits and many of these are travel related.

“However, there are often wide variations in the extent or coverage offered by particular types of benefits offered,” he said. “For example, does the travel insurance policy just cover Europe or does it provide worldwide cover? Does it just provide cover for the current account holder or does it also cover other family members?”

Mr Balck says that “it is essential” that consumers compare current accounts and “check that what is offered is appropriate for their own circumstances.”

© Fair Investment Company Ltd

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