While some may see travel insurance as an unnecessary expense that isn't worth it, it can offer important peace of mind to travellers. An insurance policy is a reminder that wherever you go, trip protection will follow.
But is travel insurance truly worthwhile? Here's everything you need to know.
Why is travel insurance important?
Travel insurance is important as it protects against unexpected costs on a trip or holiday.
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Securing travel insurance, often for a small upfront cost, is considered a smart move as you could save thousands of pounds in the event of an emergency.
What does travel insurance cover?
Travel insurance covers issues such as medical expenses, trip cancellations or delays, and lost or stolen baggage. Holidaymakers can add on optional extras, usually at an additional cost, for example gadget protection.
Make sure you check policy exclusions, as different insurance providers will have different rules.
There are some instances where you won't be covered by travel insurance.
For example, natural disasters such as hurricanes, floods or storms are not included in travel insurance as standard. However, some providers will offer this type of cover for an extra fee.
"For holidaymakers travelling to a destination where natural disasters could be a possibility, it's important to have read the policy details before purchasing the insurance product," says Seamus McCauley, head of public affairs at Holiday Extras.
While some people may not realise it, there are smaller incidents where travel insurance won't cover you.
"If you change your mind about a holiday or you miss a flight, then it's likely your insurance won't cover you. Also, if you're having a few glasses of wine and an incident occurs, most policies won't protect you if there's alcohol involved," warns Greg Wilson, CEO of Quotezone.
"Always check the Foreign Office too before you set off. If they advise you not to travel to a particular area and you go ahead anyway, your policy won't cover you," he adds.
When do you need travel insurance and is it worth it?
While travel insurance is likely to be a good idea, it may not be essential for every trip. But in certain instances, travel insurance could be well worth it.
Travelling abroad, especially with prepaid trips booked, can come with the risks of unforeseen circumstances. As such, travel insurance protects against cancellations in events out of your control.
For the adventurous at heart, you may need to get specialised cover as your travel insurance policy might not cover certain activities.
Skiing, scuba diving, hiking or bungee jumping carry their own risks, particularly in more remote locations, and this coverage can be of assistance in a worst case scenario of injury.
Sadly, unrest is continuing across the world, so for countries where the political or economic situation is volatile, travel insurance is likely to be worth it in case you have to cancel your plans, or need to leave urgently once you get there.
Many people will be travelling to capture the best moments of their trip with a camera, but this, and valuable possessions like it, should be protected. Those carrying valuable items can benefit from travel insurance as it can cover loss or theft.
Finally, if you are planning to visit multiple destinations on your journey, travel insurance could be a key way of keeping unexpected costs down. Flight delays and cancellations in particular can prove costly, so if you do miss your connection, travel insurance is worth it to recover costs.
How much is travel insurance?
The average cost of a single-trip policy is £22, figures from The Idol and Go.Compare show. This rises to £60 for those taking out annual multi-trip insurance. Backpackers insurance can be even higher at an average of £192.
"The cost of your travel insurance will vary depending on a number of factors: the destination, the length of your trip, and any pre-existing medical conditions. These will all impact how much your policy costs", explains Ceri McMillan, travel expert at Go.Compare.
"You should also check that you're not already covered, as some bank products and even home insurance policies have travel insurance included, so you may be able to find some savings," adds Greg Wilson.
Is it worth paying excess on travel insurance?
Excess is a fixed amount you will pay towards a travel insurance claim before the insurer covers the rest - and some will be wondering whether this part of travel insurance is worth it.
When taking out travel insurance, there is often a choice to be made. Either you can pay a higher premium for zero excess, or a lower premium with excess fees on claims.
Choosing a travel insurance policy with excess can lower the upfront cost for the policyholder, but can also reduce your payout if you need to make a claim.
Excess can be worthwhile, for example, on low-risk trips with a minimal risk, or where small claims against the policy are unlikely. However, there is one major consideration to bear in mind when thinking about excess.
"It's important you don't opt for a higher excess than you can afford to pay. If you make a claim for £1,000 and your excess is £250, your insurer will only pay out £750," says Ceri McMillan.
Do I need travel insurance if I have a GHIC or EHIC?
A European Health Insurance Card, referred to as an EHIC is the pre-Brexit predecessor to the Global Health Insurance Card (GHIC). It can help those travelling to the European Union to access state healthcare. But it is not a replacement for travel insurance.
Some holidaymakers could find themselves transported to a private hospital, and subsequently facing thousands of pounds in medical bills, as GHIC and EHIC cards only cover treatment in public hospitals, explains Andy McDonald, Underwriting Manager at Norton Insurance Brokers.
"When heading abroad, you need more protection than just for medical emergencies. By having travel insurance in place, you'll have protection if your flight is delayed or cancelled, if your trip is interrupted, your luggage is damaged or lost, your belongings are stolen, and of course increased cover for medical emergencies than what a basic GHIC or EHIC card provides," he says.
How do I make a claim on my travel insurance?
To make a claim on travel insurance, first review the terms of your policy. You should subsequently gather the required evidence and documentation that may support your claim. Details such as receipts, booking references, proof of cancellation, or police reports in the case of theft or loss could assist.
Many travel insurance providers want their policyholders to contact them as soon as possible following issues or incidents, and this is particularly true in cases of medical emergencies. To help in making a successful claim, make note of your insurance provider's helpline.
Next, complete a claim form with accurate and relevant details. A prompt submission will decrease the likelihood of a claim being rejected.
Processing a travel insurance claim may not be instantaneous, but being proactive is recommended. Some insurers may require more details, so be prepared to provide further information in the case of a follow up.
When is the best time to book travel insurance?
It is worth buying travel insurance as soon as you have booked a trip. The sooner a travel insurance policy is taken out after a trip is booked, the sooner you will be able to have the protection against any issues that may force you to change your plans or cancel your holiday altogether.
Procrastination when it comes to booking travel insurance is generally not a good idea. This is because if you are purchasing single trip travel insurance, the cover will last from the day the policy is bought to the date you return home. This means if there are any unforeseen circumstances, such as medical emergencies, accidents, a death in the family, or a travel provider going bankrupt, before a trip, they could be covered by your policy.
"Without insurance in place, you might not get your money back unless your booking provider offers free cancellation. With a policy secured beforehand, you have that extra layer of protection from the start", says Andy McDonald.
An annual, multi-trip policy could be suitable for those who are travelling throughout the year, even if at first glance it may seem expensive.
"This type of policy covers all your trips for the year, including UK getaways, and ensures you're protected from the moment you book. It works out to be more cost-effective than buying separate policies, and saves you the hassle of sorting insurance every time you travel," McDonald adds.
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