Travel Insurance
What does travel insurance do?
Travel insurance is usually purchased as a standard combined package of covers designed to protect you from a variety of adverse events that could occur while you are on holiday.These typically include:
- Providing some financial recompense if your trip is cancelled or curtailed due to circumstances beyond your control
- Medical emergency and/or repatriation expenses if you are ill or injured
- Loss or damage to your personal possessions
- Loss or theft of money
- Expenses incurred due to a delayed departure
- Expenses incurred replacing a lost passport
- Legal expenses and personal liability cover in the case of an accident where you cause injury or damage to a third party or their property
- Compensation if you suffer permanent disability or death whilst on holiday.
Often these areas of cover are subject to specified limits and excesses, so you will need to read your policy document carefully to check how much you are covered for and what, if any excess you would need to pay in the event of a claim.
Travel insurance policies may be purchased for individual trips or as an annual policy for all trips taken in the year of insurance.
You can buy travel insurance from many different sources including insurance brokers, travel agents, tour operators, banks, building societies, the post office, retailers, credit card providers or direct from insurers.
Suppliers offer a variety of methods of purchasing such as over the counter, by telephone, post and over the internet.
Important exclusions
Claims arising from ongoing medical conditions that you suffer from before you take out the insurance;Claims arising from your participation in hazardous activities or some adventure activities such as horse riding, skiing, scuba diving or cycle touring (listed activities vary).
If you have any pre-existing medical conditions or are planning to participate in any potentially hazardous activities and you want these to be covered, you must tell the insurer before you travel to confirm whether they will cover you for claims arising from these causes. If in doubt ask your insurer.
About half of the policies in the travel insurance market cover medical expenses caused by a terrorism event, and some policies also cover other costs incurred by terrorism, such as loss of luggage and personal accident. Check your policy for details and shop around to get the cover you want.
What other things should I ask or think about when buying travel insurance?
What are you planning to do? - With the rise in popularity of adventure travel it is increasingly important to ensure you will be covered for any activities you may participate in during your holiday.Where are you planning to go - Sometimes it may not be considered safe to travel to certain destinations. If you are unsure, check the Know Before You Go section of the Foreign and Commonwealth Office website for advice about your destination.
If you will be travelling to remote areas of less developed countries where medical treatment may not be readily available, does your insurance cover repatriation costs if you are seriously injured or taken ill?
What cover do you already have? - Some Household Contents insurance policies may provide cover for personal possessions temporarily taken abroad. If you already have sufficient cover for taking personal possessions abroad as part of your contents insurance, you may be able to drop this type of cover from your travel insurance package.
Some credit card providers may offer some elements of travel insurance as part of their product, but cover may be limited. You might therefore have to buy some additional cover to provide the equivalent protection as stand-alone travel insurance.
What happens if I need help while on holiday? - Most travel insurance policies include a 24-hour emergency service and telephone advice line. Take with you a copy of the policy and a note of the telephone number; many insurers issue a handy card with contact details.
Take reasonable care - All insurance policies say that you must take care of your belongings at all times. If you don't, the policy may not pay out. Look after your possessions as though they were not insured.
Other information
Staying Healthy - You may need vaccinations to avoid contracting diseases in some countries. Your GP or practice nurse will be able to advise you on what is required. Some vaccinations are given in multiple doses over a period of up to six weeks, so it is necessary to arrange this as early as possible to ensure you are adequately protected.New European Health Insurance Card - EHIC
If you are a UK resident, you are entitled to free, or reduced cost, state provided healthcare when visiting a European Union (EU) country, Iceland, Liechtenstein, Norway or Switzerland. To be covered you will need to take the EHIC with you. The quickest and easiest way to get an EHIC is to apply online or pick up an application form from the Post Office. The EHIC has replaced the old E111 and, as of 1 January 2006, E111s are no longer valid.However, it is strongly advisable to get travel insurance even when travelling to EU countries. Few countries pay the full cost of medical treatment even under reciprocal health service arrangements. Also, extra travel and accommodation expenses and repatriation costs are not covered by the reciprocal arrangements. Standards of healthcare can also vary between countries.
Nevertheless, there are still many advantages in the reciprocal agreements and you should travel with an EHIC. For example, some insurers may waive a medical excess under their policies if you use an EHIC.
More information about the EHIC is available on the Department of Health's website
Foreign & Commonwealth Office (FCO) information - Make the most of your trip abroad - get proper insurance and check out the Foreign & Commonwealth Office website at www.fco.gov.uk/travel to find out in a flash how best to avoid trouble. Packed with essential travel advice and tips, the website also offers up-to-date country information.