Confused about travel insurance deals? We have got you covered
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.
If you’re unlucky enough to be injured on holiday it needn’t be a nightmare
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,