Not sure if you need travel insurance? You may be tempted to ignore it, but the worst-case scenario could happen to anyone! Read here for a worry-free holiday.
The last thing you may want when planning or booking an awesome trip is to think about things going wrong.
Travel insurance is hardly the sexiest topic, but can make an enormous difference to your trip if things go wrong. And in today’s times when uncertainty is the new normal, it’s worth the effort to understand your options.
This is especially true when considering the worst-case scenario of not having insurance:
A Brit recently received a medical bill of £760,000 while visiting America! I don’t know about you but I can’t imagine being able to EVER pay that back.
Confused about travel insurance? Don’t know where to start?
Our guide provides everything you need to know and top tips on how you can stay safe while exploring the world.
What is travel insurance?
To put it simply, a small amount of money is paid to a company to help cover you and your asset from unforeseen circumstances on holiday.
What are the benefits of travel insurance?
There is a multitude of advantages, here are some examples:
- Cancellations: If you are unable to make your trip, you can receive a refund of the prepaid cost which you might otherwise lose, for example, accommodation and transport.
- Medical expenses and repatriation: In the unfortunate event that you get injured or taken ill abroad. You might not be able to communicate with your main doctors and be unable to pay for your medical treatments. The insurance company can assist in that situation and help you return home.
- Personal belongings: A common problem that happens during a trip involves personal possessions, such as delayed luggage or lost passport. Make sure your policy covers the value of your items and gadgets. So, your trip can go smoothly even when the worst does happen.
- Peace of mind: Perhaps, this is the most valuable benefit of it all.
When should you buy travel insurance?
A common misconception of travel insurance is that it starts as your trip begins, but it’s when you take out one that matters.
So, you should purchase it as soon as you have booked your trip.
For example, if you need to cancel your trip or if you become unable to travel. The insurer could cover some of the holiday costs.
How much should you spend on travel insurance?
Many factors affect the cost, for example, your age, your destination and your medical conditions.
The cheapest isn’t necessarily the worst and the most expensive isn’t always the best.
For example, you take out the cheapest insurance without reading the policy. You go skiing and get injured. You are now liable to pay for the medical bills as your policy doesn’t cover it.
Do not try to go with the cheapest one, read through the policy properly to make sure that it will cover your every need.
Which conditions can make or break your cover?
Choosing the right travel insurance can feel a little daunting.
Pay attention to the below points to ensure that your travel insurance covers what you need.
Type of cover: Whether you are looking to cover just a single trip or multiple trips in a year. Advanced planning can save money and time for frequent travellers.
Who is covered: If you are travelling as a couple or a family, make sure to read the restrictions clause. For instance, if you don’t live at the same address as your travel companion(s), you might not be covered.
Trip duration: To avoid getting your insurance invalidated, make sure that your journey doesn’t extend beyond the policy’s maximum trip duration.
Destinations: Check if the areas you are visiting are included in the fine print as some policies only insured in certain countries, for example, country-specific, Europe and worldwide excluding the USA.
Pre-existing medication conditions: Make sure you declare existing health conditions to your insurance provider. If you withhold your medical history and want to make a claim, your insurer will be able to access your medical records and void your policy.
High-risk activities: If you are planning on partaking in extreme sports such as bungee jumping, sky-diving or going an adventurous holiday like skiing. You might need to pay for extra cover or take specialist insurance.
Excess charge and limit on claims: Make sure the limit covers the item’s cost and that you can afford the excess charge. For example, if you have a £100 excess and successfully claim £500, you will receive £400 in total to replace your belongings.
Belongings cover: If you are travelling with an expensive camera, jewellery and other high-priced items, be sure to declare them to your insurer and that your policy’s claim can cover the cost to replace them.
To avoid invalidating your travel insurance, carefully read the fine print – the insurer will expect you to take reasonable care of your possessions, this can be different for different providers.
Report of theft: In an unfortunate event of theft, to follow your policy’s terms, the crime must be reported to the police immediately – do not wait until you get home! You will need an official police report to make a claim.
Missed flight: If you fail to make your flight, you might be able to claim travel and accommodation expenses – as long as the situation was outside of your control, for example, due to an accident or transport delay.
Again, read your policy carefully to see what will be considered.
How to get cheap travel insurance?
- Check your policy: Don’t buy the first or the cheapest policy you find – read all the clauses carefully, to ensure that you are correctly covered.
- Check your bank account: You might already have travel insurance that comes with your packaged bank account. In which case, you won’t need to purchase one – unless you need extra cover for a specific activity or pre-existing medical conditions.
- Understand what you need from travel insurance: Make sure that your travel insurance covers what you need. If you are not taking high-value items, your premium might be lower.
Coronavirus and travel insurance
Most new policies are currently not covering Coronavirus cancellation, so make sure to check the fine print.
However, if you can purchase travel insurance and are travelling, your medical cover stays the same if you are diagnosed with Coronavirus and require medical help abroad.
Finally…5 travel safety tips you should ALWAYS follow
- Don’t draw attention to yourself with expensive jewellery and fancy gadgets.
- Research common travel scams in the area and avoid them.
- Keep emergency information handy – a photocopy of passport, travel insurance details, emergency phone numbers etc.
- Follow up-to-date travel safety guidance from your government.
- Take precautions when meeting new people
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