Travel insurance is a really important part of going on holiday, but a lot of people don’t bother with it. You may think you’re fit and healthy so you don’t need it, but you do. Travel insurance doesn’t just cover medical costs, it also covers lost baggage, cancelled accommodation and equipment costs. It’s really not worth skipping out on, as cover for most trips starts from as little as £5. Here is the ultimate travel insurance checklist.
Things to consider before you purchase travel insurance:
- How long are you staying?
- Which country are you going to?
- How many people are travelling with you?
- How old are the people in your group?
- Are any children travelling with you?
- Would you be eligible for family cover?
- Have you or anyone in your party got a pre-existing medical condition?
- What kind of activities will you be doing whilst away (i.e. winter sports)
- Will you need to cover the cost of hired equipment?
- What cover do you have on your household contents insurance?
- Could you use a specialist provider to get cheaper cover?
Types of policy
- Single trip- Will only cover you for a single trip.
- Annual multi trip- Can work out cheaper if you travel more than twice a year.
- Worldwide insurance- For if you are travelling outside of Europe.
- Winter sports- For skiing or snowboarding.
- Backpackers- If you are away for a long time and moving from one country to the next.
- Family- For people travelling as a group with children.
- Group- If you are travelling in a party with friends.
- Over 65s- For older people.
The above are the most common types of travel insurance, but there are others such as student, golf holiday and cruise insurance.
What travel insurance will cover you for:
Medical expenses
Cover for medical expenses should be at the top of your travel insurance checklist. Getting ill or injured abroad can be extremely costly, particularly in places like the USA where an ambulance ride could cost thousands. If you have a medical condition, you may need to declare it to your insurer. Failure to do so could invalidate your claim in the unfortunate circumstances where you need to make one.
Cancellation/delays
This is protection in case you have to cancel or cut short your holiday, or your flight is delayed.
Baggage/belongings
A good travel insurance policy should pay out if your baggage is lost or your personal possessions are lost/stolen/damaged.
Personal liability
This will cover you if you injure someone or cause damage to their property.
Existing cover
Before you purchase travel insurance, you should check to see if you have any existing cover. For instance, your home contents insurance may include cover for personal possessions when you are away from home. Some bank accounts or credit cards may also have travel insurance, but double check the benefits as they can often be very basic.
Where to purchase travel insurance
If you book your holiday through a travel agent, they’ll often try to sell you insurance there and then. If you book through an airline, they will also try to sell you insurance at the time of booking as an add on. Whilst this can be convenient, it’s not always the most cost effective way and shopping around for your insurance can save you money. However, it’s important to check the details of the policy as the cheapest option may not have enough cover.
Ideal travel insurance policy
Policies will differ depending on the type of holiday you’re going on, but ideally your policy should have the following attributes:
- £1million of medical cover in Europe.
- £2million of medical cover in the USA.
- Compensation for cancellation and cover to get you home safely in case of an emergency.
- Minimum of £1500 baggage/belongings cover.
- £1million personal liability cover.
- Cover for legal costs in case you run into legal issues whilst abroad.
- Access to a 24 hour emergency helpline.
- Make sure that your insurer is a member of the Financial Ombudsman Service in case you run into difficulty, as the service can intervene.
If you’ll struggle to remember our checklist, we’ve created a handy infographic for you:
