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Travel insurance - Get it covered!

The holiday is booked and the countdown has begun. No-one wants to think about things going wrong while we're on holiday but accidents do happen, so having the right travel insurance is a must.

You can buy travel insurance from the travel operator you booked through. However you could get a better and cheaper deal by shopping around and getting insurance that is tailored for you and your family.

There are two types of travel insurance - annual multi-trip and single trip.

An annual multi-trip policy lasts for a year and covers trips up to a maximum amount of time, usually between 30 - 60 days. Breaks in the UK should also be covered as long as they are for more than two consecutive days.

Single trip cover does what it says on the label, it covers you and your possessions for one trip.

It's generally felt that if you are intending to make three or more trips a year to Europe (including weekend getaways) an annual multi-trip policy is better value for money. An annual policy is also likely to be the better choice if you are hoping to holiday outside of Europe more than once.

If you are planning to travel to the USA (even if it's only once), then an annual policy may still be the better option as single trip insurance covering the States tends to be expensive due to the high medical costs the country has.

When travelling to Europe make sure you get your free European Health Insurance Card (EHIC) before you leave. The EHIC is not a substitute for travel insurance. It allows you to be treated like a citizen of the country you are in, and not a tourist, for medical purposes. So if citizens receive free medical care, you will too. If you do have to pay it should be at a discounted rate. The EHIC doesn't cover lost baggage or holiday cancellation and it's important you have the card on you at all time when abroad. Be aware that the terms of the card state that if you don't have it on your person then you won't be covered.

If you are travelling with a partner or family then buying an insurance that covers you all can be cheaper than buying individual policies. But check the terms and conditions to make sure you are all covered equally.

Most travel insurances will not pay out if your airline goes bust. This isn't a problem if the tour operator you booked through is ATOL registered. Another way to ensure you're covered is to book travel tickets costing over £100 on a credit card. That way if your airline does go bust you can claim your money back from your card provider.

Make sure the insurance you buy provides the right level of cover. If you are going skiing it needs to cover winter sports. If you are intending to do water sports or sky diving while you are away then make sure these activities are covered before you strap on the parachute.

If you are travelling to a country with poor medical facilities then your insurance needs to cover your trip there. The Foreign and Commonwealth Office publish a list of areas/countries that are thought to be unsafe and are therefore unlikely to be covered by insurers as standard.

Back in the day the way most of us arranged our holidays was by booking a package deal with one tour operator. Now, thanks to the internet, we are able to book our flights and accommodation separately usually at a cheaper price. However, make sure your insurance covers DIY holidays. Although the way we book our trips has evolved not all travel insurance policies have!

Don't think just because you have insurance means you can act gung-ho with yourself and your possessions. If you leave your luggage unattended and it gets stolen or lost it will be unlikely your insurance will pay out. Also treatment resulting from an accident or injury sustained whilst under the influence of alcohol may not be covered, so make sure you act and drink responsibly.

When you take out insurance you may be offered additional cover for an extra cost. Of course you want to make sure you have enough cover but in the same instance don't be led into taking too much cover. For example, it's highly unlikely that you would need £100 million worth of medical cover!

For most trips, excluding those to the United States, medical cover between £2 million and £5 million should be sufficient.

Personal liability covers you if you hurt someone or damage property. Cover of approximately £1 million should be enough unless you are exceptionally accident prone or intending to cause havoc whilst you are away.

The amount of cover you want for your luggage will depend on what you are intending to take away. Most policies offer cover of approximately £1,500, however make sure you read the definitions of what items are covered. Some policies will only cover "valuables" at an extra cost, so make sure that your definition of valuable matches that of the policy.

The last thing we want to think about when booking a holiday is having to cancel it, but this can happen. Some insurance policies will only cover trips that were booked after the policy was taken out. So if you're booking a holiday well in advance, make sure you have insurance in place before you book it as there is nothing worse than having to cancel your holiday and still having to pay for it.

Source: Time For Money