Club Direct has frozen its premiums for annual travel cover for the third year running.

The direct travel writer was due to increase its rates on June 1, but has found that it will be able to maintain its two-year price freeze following better claims results.

The company is sticking to its decision to manage its claims in-house in order to provide a more cost effective service.

The price freeze is set to be reviewed in three months' time, but is likely to last for at least 12 months, according to Brent Escott, managing director of Club Direct.

Rates for Club Direct's three types of annual policy – Prima (Europe and worldwide) and Prima Plus – have already been frozen for the past two years. Prima is designed for trips lasting up to 31 days. Cover is £49 for individuals and £89 for families. Prima Plus, suitable for longer trips of up to 90 days, costs £99 for individuals and £139 for families.

All Club Direct polices include £10m in medical expenses cover with 24-hour, worldwide medical assistance.

  • In addition, two million motorists who annually take their cars abroad on holiday can now obtain a 10% discount on Club Direct's continental motor breakdown cover.

    The breakdown discount will be in effect until June 30, 2000.

    The policy is arranged through Green Flag, now part of Direct Line, and provides full 24-hour emergency roadside assistance.

    It will pay for all labour and call-out charges in the event of an accident or breakdown – with no pre-set limit.

    Cover applies for the entire period of a motoring holiday, including the outward and return journeys. It also provides for a replacement vehicle if one is needed.

    The package features £25,000 in legal expenses cover and £4,000 in case a bail bond has to be paid for the release of a vehicle or driver being held in police custody – as can occur in some European countries.

    Cover at the discounted rate starts from £26.55 for one week.

    Club Direct is also offering a 10% discount on its European travel insurance policies.

    Last year, more than 2m people took their cars to European vacation spots. This figure reflects a 30% increase in motor holidays to Europe since the opening of the Channel Tunnel six years ago.

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