When planning a trip, it’s important to pick a travel insurance policy that covers all your needs, so that if the worst happens you’re prepared.
It’s easy to get overwhelmed with all the preparation you need to do for your getaway, whether it’s booking flights, choosing the right debit or credit cards for travel, or sorting out your travel money, but travel insurance is probably the most important item on your checklist.
If your airline loses your luggage or worse still, you need urgent medical care, if you’ve got good travel cover you can at least be reassured that you will receive the help you need and that you won’t rack up a huge bill in the process.
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We’ve identified eight things that you need to watch out for when taking out a travel insurance policy.
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Why bother with travel insurance?
Choosing the right insurance can be stressful. There are activities your travel insurance policy may not cover or, if you’re an older traveller with health concerns, it may add another layer of difficulty as insurers may not be willing to cover you.
And if the Foreign and Commonwealth Office (FCO) has issued advice against travelling to a country that you then go to, that will invalidate your travel insurance. If the FCO has told you not to go somewhere, insurers won't bail you out when you do. Additionally, in 2023, Which? found that more than a third of customers had their travel insurance claims rejected, disputed or only partially reimbursed.
This list could leave you believing there is no point in having travel insurance. However, keep in mind that the primary reason to have travel insurance is to be sure you will be looked after if you fall ill (or worse) abroad. Cancellation and belongings cover is secondary to that. Costs for repatriation (getting someone home after they’ve fallen ill or, died, abroad) can cost significantly more than the holiday itself.
According to Homeland International, it costs between £2,500 and £20,000 on average to get someone home. Believe it or not, in 2010, two women were caught trying to smuggle the body of a dead relative onto a flight to Germany. Why they tried it remains unclear but it could have been an attempt to avoid the repatriation costs related to getting a body back home.
And if you factor in the daily cost of a foreign hospital stay plus medical expenses, and the purpose of travel insurance becomes clearer than ever. You could avoid all those costs with a travel insurance policy that could cost you around £20 (or £57 for an annual multi-trip policy) according to Go.Compare.
So what are some important things to remember when buying your travel insurance cover?
What to look for in your policy
When you are shopping for a travel insurance policy there are several things you need to consider:
1. Annual vs single trip policy
A single trip policy is the cheapest option and certainly the one to go for if you only holiday once a year. But if you know you’re going to go on holiday twice a year or more, an annual multi-trip policy will be more cost-effective.
Keep in mind that this can depend on where you’re travelling and for how long, as some policies come with a travel cap that can be as low as 17 days or as high as 90.
2. Extreme sports cover
If your idea of a holiday is lying on a beach or gently strolling around the local landmarks, extra sports cover won't be necessary. But if you want to ski, scuba dive, bungee jump, windsurf etc. you'll need to pay a bit extra on your travel insurance. Make sure whatever sport it is you plan on doing, you are covered.
Read our guide on 12 activities your travel insurance might not cover.
3. Personal liability cover
This covers you if you cause injury to someone else or damage their property, and they decide to sue you. Though not a common insurance cover, it pays for any legal or medical costs, compensation claims, and replacing damaged tools – any of which you may be required to pay.
Not everyone is eligible or needs this kind of cover. It depends on many factors, like your employment status, what industry you work in and the country you’re based in.
4. Medical cover
The cost of getting treatment abroad quickly mounts up removing an appendix costs around £7,500 in Europe, but closer to £25,000 in America. Most policies cover expenses up to between £2m-£10m. Make sure your cover is somewhere between those two figures.
5. Repatriation cover
It’s a grim thought, but you need to make sure that the money comes out of your insurer's wallet and not yours or your family’s. How much repatriation cover you need depends on where you’re going, medical expenses and the kind of transport you’ll be needing. The cover could be from anywhere between £1 to £15 million, or even unlimited depending on the policy you choose.
Most policies include the cost of getting home, travelling with medical personnel, accommodation expenses, 24-hour emergency helpline, funeral expenses abroad and the costs to return the body or ashes.
6. Cancellation or curtailment cover
In July, over 60 British Airways flights were cancelled due to storms and air traffic control restrictions, which affected around 10,000 passengers. Another 650 Ryanair flights and 14 easyJet flights were cancelled, following a large-scale IT outage which affected thousands of flights.
With the number of travel delays taking place, many of us rightfully worry that our trip could get cancelled or cut short due to reasons beyond our control. Make sure your insurance policy covers you for any such events.
7. Lost luggage
This option isn't essential, but it’s one to consider. In return for a slightly more expensive policy, you can get your luggage insured so that if it ends up on the wrong side of the world, you'll get some money to cover the losses. You may also get a daily amount if you’re abroad and left without your luggage.
However, think carefully before you pay out for this one. Airlines have to compensate you if they lose your luggage. Admittedly, the amount they pay is based on the weight of the luggage rather than what is in it, but if you are travelling with just clothes and non-valuables this insurance might be a pointless expense.
8. Cash and valuables cover
Finally, if you have all the latest gadgets and a bundle of cash with you when you travel you can get those items insured against theft or loss on your travel insurance. But before you do, check whether the valuables are already covered under your home contents insurance.
You might also exercise a little common sense instead of paying for too much extra insurance: keep cash in a hotel safe and take it out only in small amounts, for example.
Once you've considered all these points, hit the comparison sites to find the best policy for you. Moneysupermarket.com, Uswitch.com, Confused.com and Gocompare.com all have travel insurance comparison tools.
