Confused about travel insurance deals? We have got you covered
HARVEY JONES walks you through the options when it comes to choosing the right holiday policy
AFTER two years of summer holiday setbacks, the world is opening up again. Two thirds of us are now planning an overseas sunshine break, up from just a third last year, according to AllClear Travel Insurance research.
Holidaymakers will still be keeping a close eye on every penny, euro or dollar and hunting around for deals. But one thing you shouldn’t skimp on is travel insurance.
Here’s what you need to know.
Where to start looking for a policy
Costs vary depending on factors such as your age, state of health, where you are travelling and how much cover you take out.
A search on comparethemarket shows a 55-year-old couple travelling to Europe for 14 nights departing this week would pay from £23.22 with insurer Ergo, and £41.42 with Viva.
If travelling to the US for 14 nights, they would pay from £111.47 with Holiday Extras or £123.71 with Ergo.
Shopping around makes sense but do not just go for the cheapest – check how much cover it gives you.
Consider annual multi-trip policies
If you’re lucky enough to afford to go on more than one holiday over the next year, you could save with an annual multi-trip policy, says Greg Wilson, founder of comparison site quotezone.co.uk
“These can work out notably cheaper over 12 months than buying a string of single-trip policies,” he says.
Make sure your policy covers every region you are likely to visit. Typically, you can choose between Europe; worldwide excluding the US, Canada, the Caribbean and Mexico; and full worldwide cover.
State if you will need any extras, for example, winter sports or cruise cover, and include anyone who is likely to travel with you.
A healthy 55-year-old couple choosing an annual European multi-trip policy with a £50 excess, £5,000 cancellation cover, £3,500 baggage cover and £10million medical cover would pay just £50.02 with InsureFor. Ergo Travel Insurance quoted £55.64, Cover For You £62.51 and Admiral £64.64, all for similar levels of cover.
The cheapest multi-trip policy for those wanting worldwide cover including the US, cost £146.75, with Cover For You, while Admiral charged a bit more at £169.33.
Buy as soon as you book
Don’t wait until the last minute before taking out cover – get it the moment you book your holiday, as you then have cancellation cover in case of illness.
Brean Horne, personal finance expert at financial comparison site NerdWallet, says this also gives you the chance to shop around for the best deal and check the small print.
Know the limits of your cover
Cover should compensate you for all or some of your flight costs, accommodation and excursions if you have to cancel due to, say, illness, or bereavement.
Travel insurance will cover lost, stolen or damaged baggage and personal belongings, but only to a limited amount, explains AnnaMarie Duthie, travel insurance expert at Defaqto.
There are also strict limits on single items, she adds. If you are taking expensive items abroad, you may get better cover through your household insurance, if you take out the “personal belongings away from the home” add-on.
Sarah Smith, travel underwriting specialist at LV= General Insurance, suggests leaving valuables such as jewellery, gadgets, and sentimental gifts at home.
“That will cut your insurance costs and give you less to worry about, too, Sarah adds.
If your belongings are lost or stolen while away, you must tell the local police and get a report, otherwise your insurer is likely to refuse any claim.
If your airline loses your luggage, it will be responsible for compensating you, and should pay for buying clothes and toiletries until it turns up.
Get a report from the airline stating what happened and how long it was delayed, and keep receipts.
Most policies include personal liability cover, too.
“This will help with legal costs and compensation in case someone gets injured by your negligence, say, by dropping a suitcase on someone’s foot, or causing them to stumble and fall downstairs,” says Anna-Marie.
Most plans give you at least £2million of personal liability cover, which should be adequate, she adds.
Understand the excess
These typically range from £50 to £250.
Be warned, some policies charge an excess for separate claims, such as cancellation, medical claims, and lost or stolen baggage or money, Anna-Marie says.
“So if you fell over and injured yourself, then discovered your handbag and purse were missing, you would claim for personal injury, lost baggage, and lost money, and pay an excess each time.”
Two people claiming for lost luggage, money, and personal injury, could end up paying six separate excesses, she warns.
The best policies have no excesses at all, but these are pricier.
“As a compromise, choose a policy that charges one excess for each person who claims, irrespective of how many things they are claiming for.”
Declare all medical conditions
Remember to include any previous medical conditions, both for you and any travel companions.
“If you don’t, your insurer could reject any claim on grounds of nondisclosure,” warns Guy Bellamy, chief executive at AllClear Travel Insurance.
Many policies set upper age limits, which means you could find it harder to get cover after turning 65 or 70, or if you have serious medical problems.
But don’t despair – specialists happy to help include able2travel. com, allcleartravel.co.uk, staysure. co.uk, goodtogoinsurance.com, saga.co.uk and payingtoomuch. com
And some mainstream insurers have no automatic upper age limits, including LV=. So it’s best to be honest about any health issues.
Know what is, and isn’t, included
If you’re going on a beach holiday, standard travel insurance should do the job, says Tim Riley, managing director at True Traveller.
“But if you are climbing mountains, bungee jumping or doing water sports you may need extra cover,” he adds.
And don’t rush into doing crazy activities you wouldn’t try at home.
“Would you drive a motorbike wearing flip flops and no crash helmet in the UK? Of course not. So think twice when you’re on holiday because if you have an accident, you may find yourself uninsured.”
Beware of the booze too, as insurers may rule out claims if you were fall-down drunk at the time.
Check medical cover levels
In the US and Canada, medical treatment is unthinkably expensive, so make sure you have enough travel cover. “One night in intensive care can cost up to $6,000” Tim says.
“Emergency medical care can easily cost from £20,000 to £40,000, but a good policy should cover that,” says Guy at AllClear.
Global Health Insurance Card
Before Brexit, Brits travelling to the EU were advised to take out a European Health Insurance Card (EHIC). This gives you access to free local statefunded healthcare, on the same basis as the locals, although it won’t pay for private care. They run for five years, so if you still have a UK EHIC, it will protect you until it expires. Many people don’t realise you can get state healthcare in Europe at a reduced cost or sometimes for free with a Global Health Insurance Card. It costs nothing and you can apply for one for free on the NHS website, nhs.uk.
Tom Bishop, Direct Line Travel Insurance boss, says even if you have this card, you still need comprehensive travel insurance policy.
What about Covid concerns?
Defaqto’s research shows that 99% of single-trip travel policies do cover medical treatment if you catch Covid while on holiday and 96% will also pay if you have to cancel after testing positive for Covid before you travel.
Seven in 10 policies will even cover cancellation if you are staying with family or friends, and they catch Covid so you can’t stay with them, Anna-Marie says
If you booked your travel through an ABTA travel agent, or an ATOL flight operator, and the Government changes its advice and tells people not to travel, they should either arrange alternative holidays, give you a refund or get you home.
Ideally, book your holiday with a credit card, as that gives you extra protection under section 75 of the Consumer Credit Act.