Good insurance makes for care-free holidays
If you’re planning a holiday, it’s never been more important to have a good travel insurance policy. But what does that mean? And how do you know if it will cover you for the things you’re planning on doing? Here’s my guide so you get the most out of the available deals.
The two types of policy
There are two basic types of travel insurance policy – ‘annual’ and ‘single trip’. Within both categories there is a huge variety of choice, but as a general rule, the cheaper the policy the less it covers.
Single trip insurance does what it says on the tin. It’s cheap and cheerful and often sold alongside holiday packages or at airports.
Annual policies are worth it if you’re taking a few holidays in a year and it’s useful if you want to take advantage of lastminute bargains, knowing you’ll be covered. It’s better for longhaul trips too and the cover is generally more extensive.
Is Covid covered?
While Covid restrictions have been lifted in the UK, there may be many restrictions in your destination country. And if you test positive, the Government advice is you must not travel.
The good news is, many policies now cover aspects of Covid infections, including cancellations – but don’t assume they will. For example you might be covered for Covid if you have to cancel your trip – but only if you are formally confirmed as testing positive.
Cancellation cover
If something unexpected happens in the run up to the holiday (death of a relative, illness, an unexpected event) cancellation cover will pay out towards the costs of not being able to travel. Cheap policies can exclude this completely, so never assume you’re covered.
Cancellation cover isn’t for every eventuality. It only covers things happening to you or your immediate family. If you’ve splashed out on a megabucks trip, make sure you know what the maximum payout will be.
If you have a medical condition which might affect your ability to travel, you’ll need to disclose this when taking out the policy or before you travel. If you don’t, your claim might be turned down.
Terms and conditions
In recent years, travel insurance terms and conditions have reached ridiculous lengths, with over 150 pages to plough through. This is excessive, but travel insurance covers you for many more scenarios than other policies. Regardless, you should get a ‘key facts’ booklet that tells you the most important things, like excess levels and how to claim. If a clause in the contract is ‘significant’ it should be in the key facts document. If your insurer turns down a claim and you don’t think it’s fair, Resolver can help you make a claim – and the free financial ombudsman upholds many disputes over questionable clauses every year.
Excess fees and level of cover
Always check the excess fees and level of cover. In terms of the amount you should be covered for, I’d suggest policies that offer at least £2m (EU) to £5m (USA and the rest of the world) for medical expenses/ repatriation (hospital charges can be terrifyingly high), £2-3,000 for cancellation, £1,500 for lost or damaged luggage and £1m for personal liability (in case you are sued for damage you cause to you, property or other people by accident). You’ll find that cover for things like travel cash is low, so keep your money safe.
Family planning
There are lots of family insurance policies so if you’re going away with the kids, it’s worth opting for one. Family cover will also allow you to stay with a sick child in hospital or travel home with them if necessary – but usually only covers one parent.
Above all else – have fun when you travel. Just make sure you’re covered.
Resolver can help you sort out complaints, save money, find better deals and much more. resolver.co.uk