 |  | By Helen Storey Staff Writer Monday, 16 June 2008 |
Guide to Travel Insurance
Travel Insurance top tips:
- Don’t over-cover
- Shop around for the best deal
- Read the small print of your policy
- Don’t lie on your application form
- Don’t get hurt!
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Travel insurance can be confusing and expensive if you don’t know what you’re looking at. Our no-nonsense guide will tell you all you need to know about what you need, and how to find the best travel insurance for you..
So you’re leaving on a jetplane, but luckily you do know when you’ll be back again.
While you’ll probably be busy thinking about topping up your tan, and drinking schnapps til the sun rises, at some point you’ll have to sort out your travel insurance, in case something happens during your holiday.
But where do you start?
Annual vs. Single policy
One of the first things to decide before you take out your travel insurance, is whether you want an annual policy, or a single trip policy.
Most travel agents will try to flog you one of these when you book your holiday (usually single trip), and usually at a ridiculous price.
An annual policy will cover you for multiple trips over the course of the year, so if you have a travel itch, good cash-flow and lots of annual leave, then it’s probably best to take out insurance to cover the year.
It’s worth noting that most of the time, on an annual policy, you’ll be covered for trips of over 2 days at pre-paid accommodation within the UK too.
Pre-Existing medical conditions
It’s a good point to take into account that applying for travel insurance is not like writing a CV.
Though it may be tempting to bend the truth a bit, it’s important that you declare any medical conditions that you are aware of.
If you know you’ve got a dodgy ticker, and it gives out whilst you are taking in the sights of Amsterdam, your insurance company will soon discover that the problem already existed from your medical records, and your claim will be rejected.
What are you doing on holiday?
Unless they’re a bit odd, or particularly nosey, your insurers don’t want a day-by-day rundown of the itinerary for your week in Magaluf.
Saying this, if you know you’re going to be indulging in potentially hazardous activities such as bungee jumping, or Zorbing (hurling yourself down a hill in a giant inflatable hamster ball), you’ll need extra cover.
The same rules apply if you’re hitting the ski-slopes.
Most travel insurance companies offer winter sports insurance, which is essential if you’re heading to the piste.
If you’re escaping the country for a Gap Year, to go backpacking and annoying the locals of foreign climes, there are specialist insurance companies that will cater for this.
The EHIC card
If you’re travelling within Europe, make sure to grab a European Health Insurance Card (formerly known as the E111 card).
The card (which is not just for kids on school trips abroad) offers basic medical insurance throughout Europe and Switzerland, but it should not be used as a substitute for travel insurance – if you need to be brought back home for any reason, the EHIC won’t cover this, nor will it cover your baggage, or the cancellation costs.
Think of it as a happy addition to your policy – used in conjunction with regular travel insurance, it can cut the costs, or even eliminate an excess charge, should the worst happen.
Best of all, it’s free – you can grab one from www.ehic.org.uk or from your local Post Office.
Don’t over-cover
Finding the best travel insurance for your needs doesn’t mean finding one with the most amount of cover. While knowing that you’ll be covered for £100m of medical cover may be nice while you munch on pasta in St. Peter’s Square, in reality, even the clumsiest of people won’t rack up this much if something happens.
The general concensus is that £2m of medical cover should suffice, and you can get away with less if you’re travelling within Europe.
You should also check the amount for personal liability cover, which you will need if a legal claim is made against you while you are on your hols.
Again, try to stick to around £2m, and if you’re planning on wreaking more havoc than that, you might be best sitting in a darkened room instead of going on holiday.
A good travel insurance policy should cover you for cancellations or delays.
Make sure the amount covers the cost of your trip away (even more important if you happen to be leaving from Terminal 5, Heathrow), but don’t pay more for extra coverage when you don’t need it.
The final thing to consider not over-covering is your baggage.
For a standard family holiday, insurance up to £1500 should cover your luggage. If you’re taking expensive golf clubs, or you’re a bit of a camera geek who has all the latest gear, then you might need a bit more than this.
The good news is that you may not need cover for your luggage at all. Check on your home contents insurance, as some policies offer coverage of your personal items when outside of the country.
Bon Voyage!
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