Cut the cost of travel insurance
If you’re heading abroad for the first time in two years, expect to be shocked by insurance prices
As the world opens up after the pandemic, many of us are planning our first foreign trips for several years. But if you are about to shop around for a travel insurance policy, brace yourself. Prices have rocketed in the past two years.
The average cost of multitrip travel insurance has risen 45% from £42 in March 2020 to £61 today, according to comparison site Compare the Market. The rise is supposedly down to the fact that insurance firms must factor in the cost of Covid-19 treatment.
“One eye-watering quote for an older traveller with pre-existing health conditions taking a two-week trip to the US… came in at £451,” Rory Boland of Which Travel told The Sunday Times. “Treating Covid in a US hospital could cost up to $10,000 a night.” Repatriation costs two to three times more than from Europe.
Soaring premiums mean it is more important than ever to shop around for a good deal. Prices can vary widely. For example, a worldwide annual policy for a 50-year-old with no pre-existing conditions can cost anywhere from £31 to £268, according to Confused, another comparison site. But shopping around isn’t just about getting the lowest price – you also need to make sure you are getting adequate cover.
Check your cover
First, make sure all your destinations are covered. “European” cover sometimes includes some countries outside of the continent. More troublingly, “worldwide” cover can exclude the US. If you are buying an annual policy, make sure you are going to be covered on all your likely trips.
Second, check what activities are included. Anyone going on a higher-risk holiday – such as skiing or scuba diving – needs to be certain that their policy covers all planned activities.
Third, ensure the insurance policy has an adequate level of cover. Foreign medical expenses can be far higher than you might expect and you don’t want to get caught without enough insurance. Look for policies that include £5m worth of emergency medical cover and £1m worth of personal liability cover, recommends Jenn Selby in The Guardian. And while you are looking at the details, check it includes coronavirus medical and repatriation cover, as well as coronavirus cancellation cover.
Don’t forget your global health insurance card (GHIC) card if you are travelling in Europe. After Brexit, we can no longer get a new European health insurance card (EHIC): the GHIC is the replacement and gives us to free access to medically necessary healthcare in Europe. Despite the “global” name, this is valid in fewer countries than the EHIC: it only covers the EU and Switzerland and excludes (for now) Iceland, Liechtenstein and Norway. You can apply via the NHS website (nhs.uk/ghic).