Saga will become one of the first insurers in the UK market to extend the terms of its travel insurance policies to include some cover for cancellation due to Covid-19.

The policy update will apply to all new and renewing customers.

The cover means that any customer taking out a new policy from today will be able to claim up to £10,000 per person insured if they need to cancel a holiday because they receive a positive Covid-19 test in the 14 days before their trip departure date.

These changes have been introduced to provide customers with the confidence to travel in the coming weeks and months. 

It is also in response to increasing customer demand – cancellation cover was named as the second most important thing companies could do to make people more comfortable about travelling abroad in a recent Saga survey.

As travel advice continues to change, Saga will review its policy terms to ensure customers receive significant value from the cover.

Saga will also introduce further elements of cover based on customer feedback.

Kevin McMullan, head of product, Saga Health and Travel Insurance, said: “With travel restrictions continually changing, many people may be worried that much-anticipated holiday plans could be cut short, or increasingly reluctant to go at all.

“Now more than ever people need to feel confident and reassured when planning to travel overseas.

“We’re continuing to review and update our products to ensure they reflect the needs of our customers.

“However, we know the impact of coronavirus is far-reaching.”