Why Do I Need Travel Insurance?
21 January 2009 by Anna Staford
Travel Insurance Tips
The real cost when things go wrong
An emergency abroad can be extremely expensive. If you need to be returned to the UK it could cost you thousands of pounds, unless you have adequate travel insurance:
- £35-45,000 - air ambulance from USA’s East Coast;
- £12-16,000 - air ambulance from the Canary Islands;
- £15-20,000 - scheduled flight, stretcher and doctor escort from Australia.
Figures supplied by FirstAssist Services Ltd.
Remember: the British Embassy or High Commission will not pay for this.
What should my travel insurance policy cover?
- medical and health cover for an injury or sudden illness abroad – more information on medical and health cover page;
- 24 hour emergency service and assistance;
- personal liability cover in case you’re sued for causing injury or damaging property;
- lost and stolen possessions cover;
- cancellation and curtailment (cutting short your trip) cover;
- extra cover for activities that are commonly excluded from standard policies, such as jet skiing.
The policy should cover the whole time that you’re away.
Your policy may also have:
- personal accident cover;
- legal expenses cover.
Many insurers will extend cover if you ask them. If not, shop around for a special travel insurance policy.
Read more: Top 10 Savvy Traveller Insurance Essentials
Common travel insurance policy exclusions
Always check the conditions and exclusions of your policy:
- most policies will not cover drink or drug-related incidents;
- you must take reasonable care of your possessions or your policy will not cover you.
Not all travel insurance policies are the same
- shop around to find a good price and the right product rather than opting to travel without cover or just taking the cheapest option;
- cheaper policies will usually have less cover – for some the price seems most important, but is it worth the initial saving?
- consider Annual Multi Trip insurance if you make several trips a year – you’ll save time and money.
Cancelling or cutting short (curtailment) a trip short
A good insurance policy will cover you for cancelling or cutting a trip short. Check carefully to see exactly what you’re covered for:
- pregnancy (unknown when you buy the policy);
- jury service or witness summons;
- home emergency: fire, storm or flood, burglary;
- bad weather – affects the departure of flights and ships.
Ensure your policy:
- will refund the full cost of your holiday;
- pays out if you need to cancel or cut short a trip because you fall ill for example;
- covers pre-paid expenses such as excursions;
- covers extra costs incurred to get home.
Personal liability insurance
If you accidentally cause an injury to someone or damage their property they may sue you. Good travel insurance will cover you for personal liability.
Personal accident cover – disability and death
Travel insurance can cover a personal accident payment made for permanent disability or death.
Cover for stolen, lost or damaged possessions
You can normally choose the limit in your policy. Limits for single items such as cameras and jewellery can be as little as £150. Check these limits are adequate and realistic and ask if you can cover specified items such as a laptop or camera of a higher value.
You should report a loss to the police within 24 hours. Proof of notification will be required by your insurance company if you make your claim.
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.
Tip: take as much care of your property as if it were uninsured.
Lost baggage on flights
Do not rely on compensation from an airline if it loses your luggage.
By law, airlines only have to pay a specified minimum value per kilo of lost luggage. This is unlikely to cover the full value of your things. Your travel insurance company will deal with any shortfall.
Legal expenses cover
Taking out legal expenses cover will help you to pursue compensation or damages following personal injury while you're abroad – very important in countries without a legal aid system.
Read more: 9 Questions to Ask When Choosing Your Travel Insurance