Travel insurance guide

Why is travel insurance needed?

Travel insurance is something you need to be aware about if you are looking to go on holiday.  Many people don’t actually realise the potential costs you could end up paying if you fall ill or have an accident abroad.  Travel insurance can even cover you for flight delays, lost or delayed luggage and loss of your personal belongings.

The costs involved for travel insurance

The cost of travel insurance will depend on the type of cover you take out and where you take it out from.  Like with most financial products shopping around can save you a lot of money for the same level of cover.  Other factors that affect the cost of the insurance will be the type of activities you will be doing whilst on holiday, for example high risk sports like skiing or scuba diving will normally cost you more.

Types of travel insurance

The types of travel insurance now available are designed to cater for almost every eventuality.  When taking out travel insurance it is important for you to decide if you require cover for the single trip or if you are likely to travel on a number of occasions in the year then an annual policy may be more appropriate.

In general the travel insurance market offers the following types of cover:

• Family Cover
• Business Cover – Normally only offered on an annual basis
• Winter Sports Cover
• Over 65’s Cover
• Student Cover
• Backpackers Cover
• Extreme or Adventure Sports Cover

In almost all cases when you take out travel insurance policy the following will be part of the policy or as optional extras.

• Personal Accident Cover
• Baggage Cover
• Personal Liability

TIP: In some circumstances you may be able to save money on your travel insurance policy as your home insurance policy may cover you for items such as personal belongings.

Benefits of travel insurance

Taking out travel insurance can offer you a number of benefits:

• Peace of mind, knowing that should an unfortunate situation arise then you are covered for any costs involved, bearing in mind that breaking a leg whilst on your skiing holiday could end up costing you thousands of pounds in fees.
• Provide cover for any theft or loss of your personal belongings whilst on holiday
• Claiming back any costs should you need to cancel the holiday

How to find the right travel insurance

• Make sure the cover suits the purpose of travel.
• Check the cancelation cover details just in case you need to cancel your holiday as a result of a death in the family.
• Ensure you read the small print for any possible exclusions

Warning: When applying for travel insurance make sure you are honest when providing details as falsifying information could lead to the provider not paying out and ultimately costing you.