Take cover before breaks
AS MILLIONS look to beat the winter blues by booking a holiday in the sun, experts are encouraging them to buy their travel insurance at the same time to ensure cover ahead of departure.
The majority of annual and single trip travel insurance policies include cover for cancellation as standard, which gives protection if something goes wrong before you set off.
So if you have to cancel your trip, say, because you fall ill and you are unable to travel, you can make a claim to cover the cost. You may also be protected if a family member dies, your passport is stolen, you are made redundant and can no longer afford to go away, or your airline or tour operator goes out of business.
If you leave it to the last minute to buy your travel policy, you will have to shoulder any cancellation costs.
Check to confirm when your policy will pay out, said Anna-Marie Duthie, travel insurance expert at business information analysts Defaqto: “Our data shows that 65 per cent of annual products do not cover scheduled airline failure, for example.” Such failures have impacted thousands of travellers in recent years, she said.
Also check your insurer’s benefit limits for cancellation/curtailment cover the full cost of your holiday.
Duthie suggested booking your holiday using a credit card if you can, as this provides some protection if a supplier fails, under Section 75 of the Consumer Credit Act. You still have protection if you only pay the deposit this way. Section 75 does not cover debit card purchases.
Make sure you have the right cover for a winter sports or cruise holiday, she added. “For cruises, specific benefits may cover formal attire, cabin confinement, missed ports or interruptions,” she said.
If booking each item of your trip separately, such as flight and accommodation, rather than using a tour operator, check your policy will still cover you, as many do not.
You may try to reduce your insurance quote by choosing a larger voluntary excess – the amount you pay yourself on any claim. Duthie said confirm how this excess will be applied and try to avoid policies that charge it on a “per person, per section” basis. If you and your partner have your luggage and money stolen, you would have to claim under both the baggage and money section for each of you. That would mean paying four excesses.
If choosing a family policy but your children no longer live with you, confirm if they can still be covered.
You may also have cover elsewhere, such as for baggage under your home insurance policy if you have worldwide personal possessions cover.
The benefits of a monthly fee “packaged” bank account may include travel insurance, so avoid buying double cover, as you cannot claim twice on two different policies.
If you have an annual multi-trip policy, ensure it covers everything you plan to do on your next trip. “For example, if you weren’t intending to go skiing when you bought the policy but now you are,” Duthie said.
Never treat travel insurance as an afterthought, and do not simply buy the cheapest cover as you could regret it if you do have to make a claim.