Buy travel insurance for your holiday

Holiday travel insurance

Why buy travel insurance ...

You may regard it as a nuisance and an extra expense, and hopefully you may never need to use it - but travel insurance is indispensable if you are going abroad. Travel insurance takes much of the stress out of unforeseen events (such as loss of luggage or valuables, delay or cancellation), as well as protecting you against the (often very high) cost of medical treatment.

You might decide not to buy travel insurance because you think you're covered elsewhere. But you need to make sure that you're adequately protected.

Don't be fooled into thinking that the travel accident insurance that comes with your credit card gives you full travel cover - it doesn't. However, some current accounts and gold credit cards do come with some travel insurance cover.

What should your travel insurance policy cover?

Medical costs

This should provide at least £2m of cover if you are travelling to the US or £1m elsewhere, and include the cost of transferring you and a companion back to the UK.

Personal liability

This should also provide at least £2m of cover in the US or £1m elsewhere, and cover the costs should you accidentally injure someone or damage their property.

Personal loss or damage

The policy should cover such losses, mainly luggage and personal items, to a maximum of at least £1,000, with currency to £200.

Cancellation and curtailment

To reimburse you should you need to cancel or return early from your holiday due to illness or accident.

Permanent disability or accidental death

To provide cover should such an accident occur.

Legal expenses

To cover any legal costs (which can be substantial) should you need to pursue a claim.

Important

If you experience any of the problems above and need to make a claim, ensure that you carefully follow any guidelines set out in your policy.

This usually requires informing the local police with 24 hours of a theft, and obtaining their details and an incident number.) Also make your tour representative aware if you have access to one. Always contact the insurers' emergency helpline should you require medical assistance, particularly where hospital treatment may be necessary or you may need to return home, and ask for their guidance. And don't delay requesting and submitting the claim form as soon as you are able.

And remember that you don't always get what you pay for! In fact, millions of travellers pay more for their travel insurance than they need to because they buy it from their travel agent, tour operator or bank, who can charge several times more for similar policies.

Travel insurance can be purchased for each trip or as an annual premium, normally giving your cover for all your travel during the year. Typically, if you expect to travel three times or more or spend more than three weeks abroad, an annual policy will often work out better value.

For safety, keep your basic insurance details (policy number, contact telephone) on your person, and separated from other valuables.