Peter Gerrard, Insurance Expert
With A-levels and university finals over, thousands of students who have faced weeks of exams and at least 10 years of studying will be excited and eager to set off on what is probably their first real adventure.
Gap year travel has become more and more popular with over 75,000 students setting off to travel the world and experience new cultures. However, amongst all the excitement and anticipation some may forget some essential planning, such as buying travel insurance and making sure that their trip won't be cut short because they run out of money.
Here are moneysupermarket.com's tips to ensure that you remember your gap year adventure for all the right reasons.
Travel insurance
Travel insurance is essential for anyone going travelling, yet around 20% head off without it. While you may not think that you have much of value in your rucksack, what about the cost of replacing your i-pod or camera and if you have to visit a doctor, even if it's only for a minor ailment, it could be costly.
With gap year travel becoming increasingly popular, there are now specialist travel insurance policies that cater for this market - a standard annual policy will not be suitable as most cap the number of days you can be away for at any one time. The maximum is usually 31 or 45 days.
Even with specialist policies, the level of cover varies - the most expensive will not necessarily give you the most comprehensive cover, but similarly the cheapest may not offer adequate protection.
It is advisable to go for a policy that gives at least £5m of medical expenses cover and a minimum of £1m for personal liability. If you are travelling to more than one country, you should make sure that the policy covers you for every country that you plan to visit and that you have cover for repatriation.
It is also important to check what sports and hazardous activities are covered. Bungee jumping, scuba diving and white water rafting are popular with gap year travellers but not all insurance policies cover them. If you plan to do any winter sports such as skiing or snow boarding you will also probably have to pay extra.
To give you an example of what insurance may cost, an 18-year old female travelling for 12 months from July 2008 would pay £181.20 for the 24/7 Backpacker Premier policy, which is available exclusively through moneysupermarket.com. It covers medical expenses up to £10m and offers £2m of personal liability cover and £1,500 for cancellation. Bungee jumping, white water rafting, water skiing and scuba diving are among the activities covered, although sky diving, hang gliding and kite boarding are among the exclusions.
To compare this and other gap year policies, go to our comparison tool.
Funding
Parents often help out with the cost of their son or daughter's gap year, either by giving them some money before they go, or subbing them along the way.
For those planning on giving money at regular intervals or in emergencies, a prepaid card is worth considering. You load money onto the card and it can then be used like a debit or credit card. Safety is a key feature because if you report a lost or stolen card to a provider it can quickly send you a replacement. There is also no debt risk as you can only spend what is on the card.
Many cards allow online or telephone top-ups which are great for parents who want to add more to their son or daughter's card while he or she is overseas. However, some cards only allow face-to-face top-ups so bear this in mind when deciding which card to go for.
You should also check what fees are levied when comparing prepaid cards. Common fees to watch out for include ATM withdrawal fees, application fees and charges for top-ups.
Steve Willey, head of cards at moneysupermarket.com, recommends both the Fair FX and Caxton fx prepaid cards.
Spending money
You may decide that a prepaid card will cover all your needs while you're away, but if you plan to use a standard debit or credit card, some are better than others.
Most card providers levy fees each time a credit or debit card is used. However, there are a number that are free. The leading debit card is Nationwide's so it is worth opening a Nationwide Flex account before you go.
As far as credit cards go, there are four cards that do not charge for overseas usage: the Abbey Zero card, Post Office Platinum, Nationwide Gold and Thomas Cook credit card.
Sign up for your current account provider's online banking facility as this will make it a lot easier to manage your money and keep track of your finances while you are abroad.
There is obviously a security risk carrying large amounts of cash, but it is advisable to take some currency with you. If you will be visiting a number of countries, opt for the currency of the first place you will be travelling to. It may also be worth taking some US dollars as these are accepted in many countries and are easily exchangeable. Don't wait until you get to the airport though to buy your currency as you will not get the best rate of exchange. Online currency providers such as Ice and online fx enable you to order your money over the internet and then collect it at the airport, ferry port or train station. Some will also deliver to your home. Companies such as Marks & Spencer and Tesco offer similar services.
Visit our travel money section to compare foreign currency providers, prepaid cards and credit cards.
Staying in touch
Be careful about using your mobile when travelling. Emailing from internet cafes is probably the cheapest way of keeping in touch with friends and family back home, but if you want a mobile there are basically three options available: If you will be staying in one country buy a local Sim card. Bear in mind that calls and texts to the UK will still be expensive, but you will be able to communicate with friends locally for little cost. Another option for those staying in one place is to sign up for one of the international tariffs offered by UK mobile providers. This will reduce the cost of calling or texting friends or family back home.
If you will be travelling to a number of countries, it may be worth buying a global Sim card. For more information on using a mobile overseas read Rob Barnes' article Cheaper calls when you're abroad. You can compare costs of the different options in our international roaming section.
Have your say: Have you had a gap year experience, good or bad that you would like to share with other members, or perhaps you have additional tips for those about to head off on their big adventure? If so, visit our forum and let us know.
Disclaimer: Please note that any rates or deals mentioned in this article were available at the time of writing.
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