A MAJOR bank with 1.9million customers is making a huge change to account perks from tomorrow.
First Direct is overhauling the travel insurance cover provided to First Directory customers.
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First Directory is a £15-a-month packaged account that gives current account holders perks like worldwide travel insurance, mobile phone cover, and breakdown assistance.
Although the account has been closed to new customers since 2020, thousands of existing users still depend on its benefits.
Effective from August 1, Aviva Insurance Limited, which provides the worldwide travel insurance for First Directory customers, is making changes to the policy.
Some areas of cover are being reduced, but there are also improvements in certain benefits.
There’s good news for holidaymakers planning excursions, as the £250 limit for cancelled trips has been removed.
This gives customers better protection if pre-booked plans fall through.
However, several key protections are being tightened.
You’ll now only be able to claim extra travel and accommodation costs if you’ve been hospitalised for more than 24 hours.
The policy will only cover costs for people insured under your plan, meaning if you’re travelling with uninsured friends or family, their expenses won’t be covered if the trip is cancelled.
Trips for medical reasons, including elective procedures like cosmetic surgery or dental work, are no longer covered, and costs for medical tests or vaccinations required for travel are excluded.
Golfers will now face a £250 cap on cancelled green fees, and First Direct has introduced stricter cancellation rights, allowing them to end your policy if you’re abusive to staff or fail to pay your account premium.
If you’re a First Directory customer, make sure to check the updated terms to see how the changes could impact your holiday plans.
Customers will still benefit from mobile phone insurance, which covers loss, theft and accidental damage, though an excess applies to claims.
Breakdown assistance continues to be provided by the RAC too.
Although new customers can no longer sign up for First Directory, there are plenty of other packaged bank accounts available that offer similar perks.
What should you look for in a good travel insurance policy?
TRAVEL insurance is there to help you when something goes wrong with your holiday.
It can help cover your bills if your flights are cancelled, your luggage is lost, or you need medical help when travelling abroad.
The two main types of travel insurance are single and multi-trip cover.
There are also often separate packages available depending on where you’re travelling to – for example, if you’re remaining in Europe compared to further afield.
However, policies can vary a great deal, but here are some “must have” features you should look out for, according to the Money Advice Service:
- Medical expenses – A good policy will give cover of £1million or more for travel in Europe and £2million or more for the USA
- Repatriation service – The costs of getting you back to the UK for medical reasons should be covered automatically by your policy
- Cancellation and curtailment – A good policy will cover you for £2,000 or more if you have to cancel or shorten your holiday
- Missed departure – Covers additional accommodation costs and travel expenses up to £500 or more if you miss your flight due to circumstances out of your control
- Delay – You’ll usually be covered for £250 or more if your travel plans are delayed due to circumstances out of your control
- Baggage cover – Covers you if your baggage is lost, damaged or stolen. Look for policies that have cover of £1,500 or more.
What other package bank accounts are on offer?
Virgin Money’s Club M packaged bank account is one of the cheapest on the market, costing £12.50 a month or £150 a year.
It comes with free gadget insurance, worldwide family travel insurance and UK and European breakdown cover.
The gadget cover protects both mobile phones and other tech, such as tablets and laptops.
Customers do not need to make a minimum monthly payment to qualify for the account.
According to the bank, equivalent policies would cost upwards of £500 a year, so customers save £350 with this account’s perks.
Nationwide‘s FlexPlus packaged bank account costs £18 a month and offers a host of additional services and perks.
These benefits include worldwide travel insurance, mobile phone insurance, breakdown cover, and preferential rates on loans and overdrafts.
The account does not require a minimum pay-in, and customers get worldwide travel insurance for family trips of up to 31 days.
Mobile phone insurance is also provided for all members in the same household, and it covers for loss, theft, damage and faults.
Additionally, account holders can use their debit card abroad without incurring non-sterling transaction fees.
FlexPlus customers also get vehicle breakdown cover in the UK and the rest of Europe, even if somebody else is driving.
The Co-operative Bank’s Everyday Extra account also costs £18 a month and offers worldwide travel insurance and UK & European breakdown cover.
Meanwhile, Halifax’s Ultimate Reward package bank account costs £19 a month or £228 a year.
Customers do not need to make a minimum monthly payment to qualify for the account.
The product comes with free gadget insurance, worldwide family travel insurance, UK breakdown cover and home emergency cover.
Lloyds Bank’s Club Lloyds Platinum account offers worldwide family travel insurance, AA breakdown cover, and mobile phone insurance.
It costs £22.50 a month, plus an additional £5 Club Lloyds fee.
As part of the perks, customers can enjoy free lifestyle benefits, choosing between 12 months of Disney+ or six cinema tickets.
The account also provides exclusive savings and mortgage rates, along with the chance to earn interest on your current account balance.
Plus, customers can earn up to 15% cashback on debit card purchases at selected retailers.
If you only need European travel insurance, NatWest’s Reward Silver account could be a great option.
It costs £10 a month and provides cover for trips of up to 22 days within Europe.
Customers also get free mobile phone insurance and can use their debit card abroad without incurring extra charges.
Those looking for worldwide travel insurance can apply for a Reward Platinum account which costs £22 a month.
This account also includes UK breakdown cover.
How do I switch bank accounts?
SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS).
Dozens of high street banks and building societies are signed up – there’s a full list on CASS’ website.
Under the switching service, swapping banks should take seven working days.
You don’t have to remember to move direct debits across when moving, as this is done for you.
All you have to do is apply for the new account you want, and the new bank will tell your existing one you’re moving.
There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account.
You should get in touch with your existing bank for any old statements.
When switching current accounts, consider what other perks might come with joining a specific bank or building society.
Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts.
And some banks offer free travel or mobile phone insurance with their current accounts – but these accounts might come with a monthly fee.
