We've all heard horror stories about the massive medical bills you'll face if something happens on holiday, and that's if you're lucky enough to get there! Here's how to make sure your travel insurance protects you with the cover you need it to.
Getting away from it all is something we all look forward to, but what happens if something goes wrong?
Without the right travel insurance policy you could find yourself stranded in a foreign country footing large medical or legal bills, or stuck in the UK unable to go on the holiday you've paid for. So sorting the right cover is more than just a smart thing to do, it's a must.
While there's no point paying any more than you need to for travel insurance, you need to make sure that the policy you choose actually gives you the cover you need otherwise you needn't have bothered.
So here are the 10 things that you must check out, when you choose your travel insurance.
1. Medical bills & repatriation
One of the largest bills you face if things go wrong abroad is the cost of medical treatment if you fall ill or get injured.
Medical cover forms a central part of the vast majority of travel insurance policies with most offering upwards of around £5 million. This will be more than sufficient in most instances so there's no real point paying out for a more expensive policy just to get extra.
The exception to this is if you're holidaying to the USA as medical care is significantly more expensive so you may want to choose a policy with a slightly higher limit just in case.
If you are travelling to Europe you should also look at getting a free European Health Insurance Card – for more information you can read our EHIC article.
It's also important to check that repatriation to the UK is covered if you become unwell. The foreign and commonwealth office estimate that just to get you home from the US could cost up to £45,000 so it's well worth checking.
2. Cancellation & curtailment
Not being able to go on a holiday you've been looking forward to will be hugely disappointing whatever the reason. So checking you don’t lose out financially if you or the company you've booked with cancel is essential. This is all the more important if your holiday, or your travel arrangements aren't protected by ATOL, or another travel-safety scheme.
It's not enough just to check that cancellation cover is provided by the policy, do this and you could find yourself getting caught out. Instead you'll need to:
- check the amount of cover provided is enough to reimburse you for the cost of your holiday
- make sure the policy will pay out if you cancel and find out under what circumstances it will do so
- make sure the policy will pay out if the company you book with cancels the holiday and under what circumstances
- check you're covered for airline failure
- check any exclusions relating to cancellation including whether natural disasters and other acts of God (like the ash cloud) are covered
You should also check that you'll be covered for curtailment - this will protect you financially if your holiday is cut short for whatever reason.
3. Cover for winter sports, water sports and/or other 'hazardous' activities
It's not a good idea to simply assume that you'll be covered for jet skiing, snowboarding or any other potentially hazardous activities you expect to enjoy while you're away. Instead, you'll need to check the policy small print to make sure. If you don't and you injur yourself doing something that's listed as an exclusion, your travel insurance provider won't pay out and you'll be left footing the bill.
Write down a rough list of the activities you think you'll take part in while abroad (if you're going on a package holiday then check the hotel facilities to see what's on offer) and check that each are covered.
Winter sports is usually included as an optional extra in most policies but again you'll need to check the small print as the actual cover provided will vary from policy to policy. If you're going to be skiing off-piste, make sure you pick a policy that covers it. If you're taking your own equipment, make sure that the maximum cover is sufficient to cover the cost of replacements if it gets damaged.
If you're going to be doing something particularly risky you may need to contact an insurer directly to get the cover you need.
4. Compensation for delays and missed departure
It's a good idea to check that you'll be reimbursed if your travel plans are significantly delayed and that you'll be protected financially against missed departure just in case.
Not all policies will pay out for these occurrences, however having the cover in place just in case can be worthwhile.
Make sure you find out exactly when they'll pay out so that you are confident in placing a claim if you need to.
5. Baggage cover
Baggage cover is there to replace any items that are lost or stolen while you are away. You will need to think how much it would cost to replace everything you are taking away with you and check that any policy you're looking at gives enough cover to suffice. It's also important to check the single item limit and arrange extra cover for any valuables that exceed this.
There are some areas that are excluded from standard baggage cover such as loss of cash or passports. This can be problematic if you are abroad and don’t have a passport, so checking your covered is a wise move.
Similarly, you will need to check whether you'll be compensated if your baggage is delayed on either your outward, or home-bound journey.
6. Pre-existing conditions
Most travel insurance policies will not pay out for any treatment relating to pre-existing medical conditions. What’s more, failing to declare any conditions before you go could invalidate your cover meaning if something did happen you would have to stump up the cash yourself.
If you are aware of any medical condition then you must declare it in advance, the insurance company should then be able to tell you if they are willing to cover you, if you will need to pay a bit extra or if you will have look elsewhere.
7. Excess
As with most forms of insurance there is usually an excess to pay on any claim you make. These excesses should be stated clearly in the insurance details and can usually be lowered if you pay a little extra or if even increased to make your premium a little cheaper.
Although we all hope we won’t have to make a claim it is also worth knowing in advance exactly what you’d be expected to pay.
8. Personal Liability
Personal liability cover will pay out to cover the costs of any legal expenses you incur if legal action is taken against you whilst your on holiday. This could be a necessity if you're taken to court for causing someone personal injury or damage property while on holiday, whether intentionally or not.
9. Emergency assistance
Most travel insurance companies include this as standard on all policies but it's worth checking just in case. Having emergency assistance in place means that no matter what country or time zone you are in that if something happens that you can contact someone for help and advice.
10. Hidden exclusions
Insurance companies are famed for their love of hiding important details in the small print and travel insurance providers are no different. The best way to make sure that you pick a policy that will pay out when you need it is to spend a few minutes reading through the exclusions so that you spot anything that could cause an issue and know how to play by the insurance providers 'rules'.
