The policy update will apply to all new and renewing customers and means any customer taking out a new policy from today (12 August) will be able to claim up to £10,000pp if they need to cancel their holiday because they receive a positive Covid-19 test in the 14 days before their trip departure date.
The news follows Saga’s inclusion of medical treatment abroad and repatriation costs for Covid-19 as standard in June.
In addition to the cancellation cover, policyholders will also be able to claim on their insurance for the remaining value of their holiday if they contract Covid-19 while abroad and as a result they need to come home early.
Saga said the changes had been introduced to provide customers "with the confidence to travel in the coming weeks and months".
The over-50s specialist said it was also responding to customer demand – after cancellation cover was named as the second most important thing companies could offer to make people more comfortable about travelling abroad in a recent Saga survey.
Further elements of cover will be added based on customer feedback.
Saga Health and Travel Insurance’s head of product, Kevin McMullan, 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. We’d encourage customers to contact us directly if they’d like to discuss their individual circumstances and how we can best support them through these uncertain times.”
