Nationwide Building Society has announced it will end free European travel insurance for remaining FlexAccount customers who currently receive the benefit. The change takes effect from 31 December 2021, and affected customers have been notified this week.
The free European travel insurance has been a key perk for FlexAccount holders for many years. However, Nationwide stopped offering it to new customers in December 2016. Existing members who signed up before that date were allowed to keep the cover, provided they paid at least £750 a month into the account and completed an annual medical declaration.
From the end of this year, those longstanding members will also lose the cover. Nationwide stated that only a quarter of its FlexAccount customers currently benefit from the product. A spokesperson said: 'We have kept our free European travel insurance in place for longstanding FlexAccount members for five years after removing it for new members in 2016. However, with a relatively small proportion of members now meeting the eligibility criteria, we have taken the decision to simplify our proposition and align terms for all FlexAccount members.'
Customers who have paid for an upgrade, such as to extend cover beyond age 70 or for a medical condition, will retain their insurance until that upgrade expires. Nationwide is offering a 30% discount on Direct Line travel insurance for affected customers, though experts advise shopping around for the best deal. Alternatively, customers can upgrade to Nationwide's FlexPlus account, which provides worldwide travel insurance for the whole family at £13 per month.
Meanwhile, Axa has announced it will stop selling its own brand overseas and UK travel insurance policies to new customers. Existing policyholders will not be affected until their cover expires, but renewals will not be possible. Axa will continue to underwrite policies for third-party partners such as the AA, Abta, Coverwise and Halifax packaged accounts.
