The Importance of Travel Insurance
When planning a holiday abroad or travelling on business, securing travel insurance should be a priority. While most journeys overseas go ahead as planned, a serious incident or unexpected expenses can be financially devastating if you don’t have insurance cover.
Despite its importance, many people delay purchasing travel insurance until the last minute, which can be disastrous if they need to cancel their trip before they have bought insurance. Additionally, some focus solely on finding the cheapest policy, overlooking whether it meets their specific needs.
Not all travel insurance is equal – but it doesn’t need to be. The important thing is to ensure it meets your requirements. At a minimum, travel insurance should cover cancellation costs, loss of belongings including baggage lost by airlines, train and coach operators, third-party claims, and medical expenses, including repatriation if necessary. Many standard insurance policies don’t automatically cover the full costs associated with delays and cancellations, so reading the small print is essential.
So… this is not a whistle-stop tour of the cheapest travel insurances. But it is a guide to finding the right policy.
Duration of Coverage, and who is it for?
Consider for how long you need coverage. For a single city break, annual cover may be excessive. However, if you plan to travel several times within a year, an annual policy might be more economical than several individual ones. Decide how likely you are to travel in the next 12 months to determine the most cost-effective option. For families, a whole-family policy will often be better value than multiple individual ones. That’s one example where using comparison websites is extremely useful in understanding what’s available.
Regional Coverage
Understand what regions your insurance policy covers. If you purchase a policy that covers only Europe, you’ll need to buy a new policy if you then get a great deal on a holiday in Thailand, for example. For frequent travellers, opting for worldwide coverage might be the best value option, as the additional cost is often modest. Also, check coverage carefully. Turkey is a good example. It’s a major destination for European travellers, with many Mediterranean resorts. However, the bulk of the country is in Asia, so not all insurance companies include it in their European cover.
Where to Buy Travel Insurance
Many people head straight to comparison websites. There’s nothing wrong with that, and some do have some great deals. However, while they are helpful, not all insurance companies participate. Some insurers avoid these platforms to maintain their market positioning. Therefore, it’s crucial to conduct additional research outside comparison sites to find the best policy.
Essential Coverage
Ensure your policy covers the basics:
- Cancellation costs, and ideally delays too
- Loss or theft of belongings, including baggage lost by airlines, or train and coach operators
- Third-party claims
- Medical expenses, including repatriation if necessary.
Additionally, check the specific requirements for seeking medical care in the country of your destination. For UK travellers in Europe, free medical cover should be available if you carry a UK issued Global Health Insurance Card (GHIC). This is free for UK residents and can be arranged via the NHS and GOV.UK .
Nevertheless, additional medical insurance is a wise precaution. Although medical care should be free at the point of use throughout Europe, in practice this is not always the case and local decision-making may slow things down. So, it really is worth having the reassurance of a full medical insurance policy as well – especially in the case of complex needs.
Adequacy of Coverage
Verify that the extent of coverage meets industry standards and expectations in the UK. For example, medical cover should be at least £2 million for Europe and £5 million worldwide. Check the policy details carefully to ensure it offers adequate protection for your needs. If it looks cheap, work out why. It might still provide all the cover you need – in which case you have a bargain. But it might cost less because of some surprising exclusions. Again: check the details carefully.
Travel Insurance Policy Excess
Understand the “excess” – the amount you pay as part of the cost of a claim if you need to make one – for each category of cover. This can significantly impact the overall value of your policy.
Additional Considerations
Once you’ve addressed the fundamentals, consider other factors that might influence your coverage needs and costs:
- Pre-existing Medical Conditions: If you have pre-existing medical conditions, including previous cancer diagnoses, research specialist insurers and brokers. They can offer tailored coverage that standard insurers may not provide.
- Age: Older travellers generally face higher premiums due to perceived health risks. However, some companies specialise in offering coverage for older travellers, so it’s worth seeking them out.
- High-Risk Sports: Standard travel insurance usually excludes high-risk sports or charges a premium for their inclusion. It’s best to look for specialist policies. For sports such as skiing, for example, tour operators usually offer or refer to bespoke ones. For more extreme sports, dedicated providers usually offer surprisingly reasonable rates based on a detailed understanding of risks and claims.
- Unplanned Risky Activities: Be aware of coverage limitations for unplanned activities. While many policies cover water sports provided by holiday resorts, unplanned activities like rock climbing with some new friends you met in a bar may not be included. Ensure you understand your policy’s limitations.
Where can I find out more about Travel Insurance?
Check out these additional resources:
- Association of British Insurers: “Travel Insurance Guide”
- GOV.UK: “Guidance: Foreign Travel Insurance”
Key Questions for Choosing the Right Policy
As a rule of thumb, always check the basics are in place, then seek out any special adjustments:
- How often will you travel in the next 12 months? (Do you need an annual policy?)
- Where are you going? (Do you need worldwide cover or just European cover?)
- What extent of cover do you need?
- Do you have any special requirements (medical, age-related, high-risk sports)?
Answering these questions, and doing some extra reading, will help you identify the insurance that most accurately meets your needs. Remember, the cheapest policy is not always the best. Paying slightly more can often provide significant additional benefits.
By Declan Morton, writer and editor at Essiell Ltd and Money4Travel.
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