Get covered and avoid a holiday hangover
Two-thirds of British holidaymakers miss out on cancellation cover because they book their insurance less than two weeks before they travel. In fact, research from moneysupermarket.com suggests that nearly half (47%) wait until the last week to take out cover. If the unexpected happens, such as a family bereavement or serious illness, this can leave travellers paying for a flight they don't even take.
The advice is therefore to buy your travel insurance as soon as you book a holiday or ensure that your annual policy is not about to run out. However, if you have arranged a trip for the Easter period and have not yet sorted out your insurance it is not too late.
A risk that's not worth taking
Travel insurance isn't mandatory and a third of holidaymakers don't bother buying it according to Nationwide building society. However, this can be a costly oversight.
Lost baggage complaints are on the increase with British Airways (BA) losing more luggage per flight last year than almost any other airline, yet it can cost hundreds of pounds to replace the contents of a suitcase.
Medical expenses too can be astronomical in many foreign countries. For example, a heart attack in Spain could set you back by as much as £35,000 while a car accident in South Africa could lead to a £146,000 pay-out. Repatriation costs can be high too, should you need to be transported back to Britain early for medical purposes - charges can reach £11,500 in Greece and £8,000 in Spain.
European Health Insurance Cards
If you're travelling in Europe, medical costs can be partially offset by a European Health Insurance Card (EHIC). The EHIC, which replaced the E111 form in 2006, is available from the Post Office, via telephone or on the internet and gives its carriers' access to state-provided medical treatment in the country they are visiting. However, it may not cover everything you expect on the NHS and so it should not be seen as an alternative to travel insurance - for more information on the EHIC and how to get one, click here.
Single trip versus annual multi-trip travel insurance
Once you've decided to take out a travel insurance policy you'll be presented with two choices - single trip cover or an annual multi-trip travel insurance policy.
Travel agents' rates for single trip policies are often high but you can secure comprehensive cover from several stand-alone providers for as little as £4 or £5 - the amount you pay will vary as it depends on your destination and the duration of your holiday.
Annual policies are generally more cost effective if you take more than two trips a year. And they are definitely cheaper for passengers flying to the United States due to the high medical expenses in America - single trip cover to the US is, on average, 27% more expensive than annual cover.
If you have an annual policy you will also be covered for holidays and weekend breaks here in the UK, which is something few people think about, but which can come in handy if you encounter train or flight delays.
Beware travel agents' cover
Though the message to consumers is to book travel insurance as soon as you arrange a holiday, you should not fall into the trap of accepting a policy as an expensive add-on to a flight or hotel.
Travel agents often offer cheap deals on package holidays and then use travel insurance to boost their profit margins. There are significant savings to be made by utilising comparison tools to search for the best deals from stand-alone providers. According to our money-saving tips section, a family of four taking a trip to Spain could save more than £80 and secure more comprehensive cover by shopping around rather than accepting insurance as an add-on to a package deal.
While price is an important factor, you also need to make sure you have adequate cover. As a minimum level of cover, we recommend the following:
- Medical expenses: £2 million
- Personal liability: £1 million
- Cancellation: £3,000 (or at least the value of your holiday)
- Baggage: £1,500
- Cash: £250.
A comprehensive policy needn't break the bank however. Moneysupermarket is offering an exclusive deal from Flexicover Direct - a worldwide annual policy including winter sport cover costs £57.90 for a family of four. This includes £10m of medical expenses, £2m of personal liability cover, £3,000 cancellation cover and a £1,500 baggage allowance. Alternatively, if you need more baggage cover, Marcus Hearn is offering annual worldwide insurance for £65. This includes £3,000 of baggage cover.
Before you purchase any insurance, it is essential to read the policy details thoroughly and make sure you inform the insurer of any pre-existing medical conditions. You will probably have to pay a higher premium if you do, but at least you will have the peace of mind that any claim will be paid out - non-disclosure of medical conditions could invalidate your policy completely and may result in the insurer refusing a claim even if it has nothing to do with your pre-existing condition.
As well as shopping around for insurance, don't forget to see if there are any other savings you can make when planning a holiday - by using comparison tools to search for flights, hotels, car hire and even airport parking, you could knock tens, and even hundreds of pounds off the total cost of your trip.
Disclaimer: Please note that any rates or deals mentioned in this article were available at the time of writing.
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