Passport to a happy holiday with healthy insurance

Things can and do go wrong on a break sometimes so ensuring you have the support you need could be a lifesaver

AFTER two years of summer holiday setbacks, the world is opening up again.

Two-thirds of us are planning an overseas sunshine break, up from just a third last year, according to AllClear Travel Insurance research.

Millions will defy the cost-ofliving crisis to have fun in the sun, with Greece, Spain, the Canary Islands and Turkey our favourite hotspots, a study from travel deals platform holidaypirates.com found.

Holidaymakers will still be keeping a close eye on every penny, euro or dollar and hunting about for deals. But don’t skimp on travel insurance. If something goes wrong, you’ll be glad you packed that along with your flip-flops.

It gives you valuable cover against cancellation and delays, emergency medical expenses, lost or stolen baggage, and personal liability.

Yet many take a chance and go without –15million of us, almost one in three, have travelled to Europe without insurance.

With the average medical insurance claim costing £1500, travel cover is a price worth paying. It can be more affordable than you think, although don’t cut corners. Here’s what you need to know…

Where to start

Demand for travel insurance is the highest for three years, with package holiday bookings triple that of 2021, topcashback.co.uk said. It offers cashback on travel insurance, currently £12 off with Admiral and up to 25 per cent off with Insure and Go.

Millions buy their travel insurance online, comparing policies on sites such as moneysupermarket.com, gocompare.com, postoffice.co. uk and comparethemarket.com. Or buy direct from specialists at insureandgo.com and allcleartravel.co.uk.

Most big-name insurers offer travel cover as well, including Admiral, Aviva, LV= and Zurich. Big retailers such as Asda, M&S, Sainsbury’s and Tesco also sell it.

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.

Do not just go for the cheapest policy when shopping around – check how much cover it gives you.

Consider annual multi-trip policy

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, according to 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 said. Make sure your policy covers every region you are likely to visit over the year. Typically, you can choose between Europe; worldwide excluding the US, Canada, Mexico and the Caribbean; 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. The maximum individual trip is typically around 30 days.

A healthy 55-year-old couple choosing an annual European multi-trip policy with a £50 excess, £5000 cancellation cover, £3500 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, for similar 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 your holiday

Don’t wait until the last minute before taking 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, said this also gives you the chance to shop around for the best deal rather than buying in a panic.

“That gives you time to check the small print, too,” Brean added.

Know your limits

Cover should compensate you for all or some of your flight costs, accommodation and excursions if you have to cancel due to, say, illness, injury, jury duty or bereavement.

Be mindful of costs with your cover

Travel insurance will cover lost, stolen or damaged baggage and personal belongings, but only to a limited amount, said Anna-Marie Duthie, travel insurance expert at Defaqto.

There are also strict limits on single items, she added.

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 w about, too, Sarah added.

If your belongings are los stolen while away, you must tel local police and get a rep otherwise your insurer is like refuse any claim. If your ai loses your luggage, it wil responsible for compensating and should pay for buying clo and toiletries until it turns up.

Get a report from the ai stating what happened and long it was delayed, and k 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,” said A Marie.

Most plans give you at l £2million of personal liability c which should be adequate.

Understand the excess

Just like your motor insura most travel policies charge excess, a sum of money you m pay towards a claim yourself. T typically range from £50 to £25

Be warned, some policies ch separate excesses for sepa claims, such as cancellat

medical claims, and lost or stolen baggage or money, Anna-Marie said. “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. One in four policies offer this,” Anna-Marie said.

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 non-disclosure,” warned 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, said Tim Riley, managing director at True Traveller.

“But if you are climbing mountains, doing water sports or bungee jumping, you may need extra cover,” he added.

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, as insurers may rule out claims if you were drop-dead drunk at the time.

If you are ill, or something happens that makes you want to come home early, such as being assaulted or mugged, make sure your insurer will pay before buying your tickets home.

Check medical cover levels

There is no NHS overseas, so don’t expect free medical treatment in an emergency. 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, while an air ambulance costs $100,000,” Tim said.

Even popular European destinations such as Spain and the Canary Islands can be expensive.

“Emergency medical care can easily cost from £20,000 to £40,000, but a good policy should cover that,” said Guy at AllClear.

If you do need medical treatment, tell your insurer as soon as you can. It will want to make sure you receive the most appropriate care – and control the cost.

Where possible, it will want treatment in a state hospital rather than a private one, and may even ask you to move, while refusing to pay your medical bills if you don’t.

Global Health Insurance Card

Before Brexit, Britons travelling to the EU were advised to take out a European Health Insurance Card (EHIC).

This gives you access to free local state-funded 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 continue to 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 Some companies try to get you to pay, but there’s no need.

Tom Bishop, Direct Line Travel Insurance boss, said even if you have this card, you still need comprehensive travel insurance policy on top.

Covid concerns

The pandemic may be in retreat, but it could still ruin your holiday, so check what protection your travel policy offers.

Defaqto’s research shows that 99 per cent of single-trip travel policies do cover medical treatment if you catch Covid while on holiday.

And 96 per cent will 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 said.

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.

One night in intensive care can cost $6,000 and an air ambulance costs $100,000