If you're planning a trip abroad it's vital to be adequately covered. We share our top ten tips for getting the best value from your travel insurance.
Travel insurance, although a largely optional purchase, is something no-one should go on holiday without.
Although it’s tempting to think ‘it wouldn’t happen to me’, a problem, accident, or illness while travelling can be financially disastrous if you don’t have the right cover in place.
However you shouldn’t have to pay over the odds or fork out unnecessarily for what you don’t need. Here are our top 10 tips for buying value-for-money travel insurance that will suit you and your holiday.
1. Shop around
There was a time when many of us would buy our travel insurance directly from a travel agent while booking a holiday, leading to many UK holiday-makers feeling that they had been over-charged for something they didn’t really need. However thanks to the internet there’s no need to buy direct from your agent again.
Instead you can do your own research and make a more informed decision about which travel insurance policy is right for you; something that can make a huge difference to the overall cost.
So, instead of accepting what your travel agent offers as an add-on to your holiday, shopping around can allow you to buy the right cover at the right price.
2. Don’t double-cover yourself
It may seem obvious, but don’t pay for something that is already covered by other insurance you may have. For example your home contents policy may well cover your holiday luggage, meaning that you can reduce the amount of travel cover you need to buy. As such it’s worth having a look at the small print on your contents insurance to see if you can save on cover in this way.
3. Where in the world are you going?
If you’re certain that you’re only going on one trip this year, single-trip travel insurance will give you the best deal. However if you anticipate that you will be travelling out of the UK more than once, annual cover is likely to be much more economical than insuring each trip individually.
Annual insurance policies are also a good idea if you are travelling somewhere that could potentially cost you much more if the worst should happen. For example if you are travelling to the U.S., you will probably need more medical cover as there is no NHS to rely on and medical costs can be steep. Likewise if you plan to take part in winter-sports, it could be difficult to recoup the cost yourself should something go wrong.
It’s also a good idea to buy your annual cover from the day you book your holiday, not from the day you leave the country – this way you will be covered in case of any cancellations.
If you only plan to travel around Europe within the next year, take out European cover rather than worldwide cover, as this will be a much more economical option if you know you won’t be travelling outside of the continent.
4. Be honest with your insurer
It’s important to declare any pre-existing medical conditions to your insurer when arranging your policy. Although this may raise the price of your premiums slightly, it will certainly be worth it if you have to make a claim. Your policy could be cancelled or your insurer could refuse to pay out if you’re found to have omitted vital information regarding your health.
Likewise, it’s a good idea to tell your insurer exactly what you plan to do on holiday, and where you plan to go. In this way you can make sure you are completely covered. When in doubt, it’s usually best to declare all relevant information about your planned travels.
5. Look out for discounts
If you aren’t travelling alone, you’ll generally be able to get much better value for money from your insurance if you opt for joint cover. So, if you are travelling as a family, couple, or with friends, look into the possibility of buying cover that includes all of you on the same policy.
As well as being cheaper than buying individual insurance for each person, this will mean you are all under the cover and the same conditions will apply should something go wrong, which should make the claim process much simpler.
6. How much excess can you afford?
When deciding on your amount of excess (the amount you’ll have to pay in the event of a claim before you insurer contributes), it’s a matter of weighing up what you can afford to pay in premiums with what you can afford to pay towards the cost of a claim.
If you can afford to do so, it may be worth increasing your excess in order to pay less in premiums. For example, if you increase your excess from £100 to £150 it’s likely you’ll be paying significantly less in premiums. On the other hand if you do need to claim, you’ll then have to pay out up to £150 instead of £100 before your insurer steps in.
7. Tailor your cover
Insurance policies nowadays don’t need to be a ‘one size fits all’ purchase – instead you can choose cover that suits your individual circumstances. Doing so will not only make your cover more personalised, it may also mean you can take advantage of discounts or bonuses.
For example, many insurers offer specially tailored packages for those who are over 65, or taking a gap year, or taking part in a particular activity on holiday, and so on. This provides another reason to be honest with your insurer when buying cover, and letting them know any special requirements you may need.
8. Take your EHIC with you
If you’re planning on travelling to Europe, specifically countries within the EEA (European Economic Area), it’s important to take your EHIC (European Health Insurance Card) with you. This will not only entitle you to state-provided medical treatment if you fall ill, it could also mean that your insurer will waive your excess.
Remember however that your EHIC should never be used as a substitute for comprehensive travel insurance, as it will only cover you to a limited extent. So take your EHIC with you, but buy the right cover to go with it too.
9. Cover the cost of getting home
This is especially crucial if you are travelling further afield. If you are injured or fall ill while you are away and need to be shipped home, the cost of doing so could easily climb into the thousands. For example imagine if you were injured while skiing in the Alps and needed an air ambulance back to the UK – before you know it you could be forking out your life savings to cover it.
However by adding repatriation onto your insurance policy, you can rest assured that if the worst did happen, the bill would be covered by your insurer rather than you.
10. Use your credit card
If your insurance policy is going to cost more than £100, consider buying it on your credit card. Doing so means that if your insurer should go bust, you’ll be covered by Section 75 of the Consumer Credit Act.
Policies are also available that will pay out if the travel company goes bust – something that could be worth looking into especially if you’re booking with a smaller or less well-known company. In times when companies seem to going under left and right, it might give you some peace of mind to know that the cost of your insurance will be refunded should your insurer no longer be around to honour it.
