Travel Insurance Guide - Part 1 of 4
With medical costs rising for Brits abroad, travel insurance (also known as 'holiday insurance') has never been more important. Any accident or illness while overseas can leave you with a serious financial burden unless you come prepared. That's why we have compiled a comprehensive guide to travel insurance. Read on to ensure you're fully prepared before you hit the sea, sand and, of course, the slopes!
To skip directly to the other parts of this guide click on the links below:
- Part 2 - annual or single trip; insurance for families, over 65s and business trips
- Part 3 - winter sports & adventure travel insurance; insurance for backpackers and those with pre-existing medical conditions
- Part 4 - baggage and cancellation cover; finding the right travel insurance
I'm going on holiday - why is travel insurance important?
Did you know that suffering a hip fracture in the USA could cost you £22,531? Or that a heart attack in Spain will set you back £35,000? While you may consider yourself to be in good health there are always unexpected accidents waiting to happen. It's much better to be safe than sorry.
There are less than 60 countries that have reciprocal healthcare arrangements with the UK and the majority of these are based on emergency procedures. For example, if you needed to go to casualty in Australia (one of the countries that has an arrangement with the UK) you could still end up with a hefty bill - though your treatment may be 'free' your ride in the ambulance would not be. Meanwhile, the USA has NO arrangement with the UK meaning that falling ill 'across the pond' could put you on the fast track to bankruptcy.
However, it's not just about medical expenses. Travel insurance can also cover loss of luggage or other personal belongings such as passports and money, repatriation costs and cancelled or delayed flights. Also, damage that you may cause to third parties is also covered in many cases. With all these potential expenses, it's easy to see why a comprehensive travel insurance policy is highly recommended.
So how much does travel insurance cost?
Research undertaken by Alliance & Leicester has shown that UK holidaymakers pay £1.3bn more than they need to on travel insurance each year. This is despite the fact that travel insurance appears to be relatively cheap - normally around £25 for each week abroad. So how are we managing to overspend so excessively?
About 60% of us are taking the 'easy' option and using travel agents to obtain insurance at the same time as we book our holiday. In fact, insurance sold through agencies helps them boost their profits and can be up to five times the cost of buying it separately. In some cases travel insurance is promoted as a 'free' add-on with the package - but the reality is that you will be paying for it somewhere along the line.
The fact is that online travel companies have blown the holiday market wide open. Without the overheads of running high-street stores, online retailers can offer cheaper flights, hotels and car hire. This also applies to travel insurance.
By using moneysupermarket.com you can find the cheapest travel insurance quotes by comparing more than 500 travel insurance polices in minutes. Though there are other factors to consider - including the right cover for you - it is not safe to assume that the cheapest travel insurance is the worst as some of the more expensive policies on the market will not provide adequate cover. Use our price comparison tool to make sure you're getting the best deal available.
Most travel insurance policies also include an excess - this is when you pay a set amount towards any claim that is pre-determined between you and the travel insurance company. This could be a standard (mandatory) amount or it could be voluntary, meaning that the higher the excess you take, the lower your premium.
Travel Insurance Guide - Part Two
Compare Travel Insurance Quotes and Cover
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