Having travel insurance when taking a holiday or travelling overseas for a business trip is always a good idea, as it will cover expenses if the unexpected happens. Taking out travel insurance when going abroad for a holiday is highly recommended, as costs for medical care in other countries can often be astronomical. Travel insurance will cover for the replacement of items due to loss, theft or damage and for medical expenses following an injury or illness abroad. In more extreme cases, travel insurance will also cover for the costs of being repatriated to the UK under medical supervision, such as by air ambulance.

All policies differ and it is wise to ensure that the one purchased matches the exact needs of the individual or group travelling. Some travel insurance policies will not cover those taking part in extreme sports, so may not be suitable for those taking a skiing holiday, for example. Some policies may also have a medical expenses limit, so for those travelling to the USA, where medical costs can quickly add up, it is wise to ensure there is adequate cover before leaving home.

Travel insurance also offers peace of mind for the traveller regarding the actual travelling part of the holiday. Policies often cover for the cancellation of a holiday, either by the travel company or by the traveller themselves. This means that if plans change and the traveller is unable to go on holiday due to sickness or bereavement, for example, then there will likely be a refund of the monies already paid. Each company’s policies vary and some providers may have strict criteria on holiday cancellation cover.

Choosing the right travel insurance is usually a quick process – tick the box, click yes and you are done.  Few people actually take time and consider what is important when choosing travel insurance. 

First of all, a travel insurance policy should cover several important points – medical treatment, personal liability and lost or stolen valuables.  The Consumer’s Association offers a comprehensive list of criteria:

•    Medical treatment up to £2m. 
•    Personal liability coverage up to £1m. 
•    Cover of lost or stolen luggage or valuables up to £1,500
•    Cancelation cover up to £5,000
•    Lost or stolen money cover
•    Emergency helpline

These points are considered basic for good travel insurance.  Any required add-ons would be useful, but always have a good look at the fine print to make sure you have got what you need.  Personal issues such as pregnancy, age and illnesses may require additional insurance.  At the same time, consider where you are going and what are you planning to do – sports and adventures may need additional coverage, and travelling to a country that is considered unsafe may lead to a higher cost of your travel insurance.

Travel insurance is designed to provide travellers with reimbursement for unused payments and non-refundable deposits in the event a trip is cancelled. This cancellation may occur due to unforeseen events, such as a sudden illness or inclement weather.

Having reliable travel insurance when it matters most can save you thousands. For a small investment, it is often worth getting travel insurance for the extra protection. Since not all travel insurance policies are equal, it is a good idea to make certain you are covered for the events that matter most to you.

Cancelled or Delayed Flights

Typically, travel insurance will cover delayed or missed flights. If you are taking a flight or a ferry, then it is possible you may experience a delayed departure. To qualify for reimbursement, the flight needs to be delayed by at least 12 hours. When you choose an insurance company, make sure they cover flights inside the UK.

Hotel Cancellations

Paying for a hotel in the UK is often more expensive than in foreign countries, so this is another excellent reason to take up travel insurance. During a UK holiday, the potential to lose a lot of money from a cancelled hotel reservation would end up costing more than paying to be covered for this through travel insurance.

Personal Items

The loss of luggage or other personal items during a trip can have a devastating effect. Most people travel with expensive, high-tech gadgets. The cost to replace a lost or stolen tablet or phone will cost more than a travel insurance policy. 

Whether you are a student on a gap-year or simply taking a long break from working life, long-stay travel insurance is essential. Multiple trip or annual policies, although covering you for a year, are not suitable for backpackers since they only cover for a month at a time. Instead, long-term travel insurance will cover you consistently for up to 12 months, and can also cover for working abroad.

Whilst planning your trip, it is important to make a list of every country you plan to visit and every activity you plan to do, and make sure your chosen insurance policy covers all of your plans. For example, some countries may be deemed unsafe to visit by some insurers, and if you are injured there due to war or terrorism, you may not receive payment unless your policy covers it. Furthermore, certain outdoor activities such as skydiving and motor biking may require extra cover since they are more dangerous.
 
Working abroad may be essential for some backpackers to fund their travels, but it is also a brilliant experience for gap-year students. Insurance for working abroad is available, but once again, it is important to arrange it before you travel. If necessary, check to see if you are covered for manual labour, such as building a school.

The key to an exciting and fulfilling long-term trip is being prepared. When everything is planned and accounted for in your insurance policy, you can enjoy your travels without worry.

Make sure your travel insurance policy covers you sufficiently in a number of key areas.

Health

Certain countries have agreements in place with the UK that allow British tourists to be treated like residents of that country. However, this is not always completely free and health insurance will cover extra costs. Make sure your policy covers you for every eventuality, allowing up to £1 million for European holidays and £2 million for international holidays.

Lost or Stolen Possessions

There is always the risk of losing luggage at airports or having personal items stolen, so it is recommended that cash be covered up to £250 and possessions up to £1500. However, the individual worth of certain items may exceed this amount. In this case, it is necessary for high-value possessions to be insured individually, such as jewellery or electrical equipment.

Personal Liability

This is often something that holidaymakers feel they could do without, but it is essential for unforeseeable events. This will cover you if you are sued for any reason, including being held responsible for damage to your hotel room and causing personal injury to someone else. You should be adequately covered up to £1 million.

Cancellation or Curtailment

The reason for cancellation may be out of your control; for example, unforeseen weather conditions, natural disasters, or maybe unexpected illness. Whether you or your travel agent requested the cancellation, travel insurance will allow you to reclaim the money you paid for the holiday. Ideally, you should be covered up to £5000.

Travel insurance is something that many people forget to include in their holiday plans.  Consider this: when travelling at home or abroad, accidents can and will happen, and when they do can set you back financially for years if adequate insurance has not been arranged. 

Investing in travel insurance will help put your mind at rest while you are travelling out of the country.  This insurance is designed to cover medical expenses that may occur due to any unforeseen accidents or illnesses.  Currently less than 60 countries in the world offer reciprocal healthcare with the United Kingdom.  What does this mean for you?  Well, if you are visiting one of these countries and you need to have medical treatment, the medical costs will not affect your finances as much as they would were you not to have insurance, although there might still be some fees you will have to pay out of your own pocket.  If you are visiting a country without this reciprocal arrangement, such as the United States, travel insurance will significantly help to pay your medical expenses. 

In addition to medical expenses, travel insurance is also designed to help cover the cost of incidents such as the loss of luggage, the loss of personal items including your passport and money, travel cancellations, and repatriation fees.  You should also check that the travel insurance policy also covers any damage that you may cause to a third party while you are on holiday.  By ensuring that third party damage coverage is in your policy, you ensure you are adequately covered in the event of any future legal issues. 

Talk with a travel insurance representative before finalising your holiday plans so that you can take out a policy that covers these items and provides you with peace of mind while travelling abroad.

Accidents and illness happen at the most unexpected and inconvenient times.  Regardless of whether you are enjoying a relaxing holiday on a seaside beach or driving to work in the morning, these health incidents come into our lives regardless of whether it is convenient for us or not.  Medical costs abroad are now skyrocketing, making it more expensive for travellers who find themselves in a hospital or involved in accidents in other countries.
 
Less than 60 countries in the world have reciprocal healthcare arrangements with Great Britain.  This means that if you break a leg in the United States or get ill enough to warrant a hospital stay in Spain, the traveller will be responsible for astronomical medical bills, sometimes into the tens of thousands of pounds.  One accident or illness whilst on holiday could potentially mean bankruptcy for some individuals.

That is why travel insurance is so important to travellers from the UK, and this is the reason that it has gained in popularity in recent years.  By protecting holiday travellers in case of medical expenses incurred in other countries, travellers can enjoy their time away and relax without the worry of possible catastrophe befalling them, health-wise.

Travel insurance is not just for medical expenses, though.  In the event of loss or theft of luggage, loss or theft of passports and money, and repatriation costs and cancelled or delayed flights; travel insurance will be there to cover travellers.  With all of these potential problems, travel insurance coverage can be one of the smartest decisions a traveller makes when going on holiday.

Travel insurance policies are available for just one holiday or with year-round coverage.  This article provides information about the pros and cons of buying either type of travel insurance. 

Single Trip Travel Insurance

Single trip travel insurance will cover you only for that one trip.  When getting a quote, you will provide details including trip dates and what you plan to do whilst travelling.  From this information, a quote will be calculated and proposed.  The policy will state that the insurance covers you only for this specific trip. 

Single trip travel insurance is cheaper than annual travel insurance, and is the best option for people who only travel once or twice a year.  It also offers flexibility in case of itinerary changes.

Annual Travel Insurance

Annual travel insurance will cover you for any number of short trips and holidays abroad taken over the course of a year.  For people who travel a large number of times each year, annual travel insurance can offer large savings.  Additionally, you do not need to worry about booking a new travel insurance policy for every trip taken. 

Read the Terms & Conditions carefully and think ahead about all possible travel excursions.  If you initially state that you won’t be taking part in any high-risk activities, but later in the year decide to book a skiing holiday, a new policy may need to be issued. 

There are a few factors to be considered when buying travel insurance.  They include personal baggage cover, cancellation and several other issues.

Personal Baggage

The value of the luggage that you are taking with you determines the degree of cover required for personal items.  It should be kept in mind that normally there is a limit for individual items that are valuable and you may have to buy separate insurance for them. 

Delayed or lost luggage is usually covered under travel insurance policies.  For example, if you are on a seven-day stay and your luggage does not appear until six days into your holiday, you will be covered up to a set monetary amount of compensation.

Cancellation Cover

The level of cancellation cover you have must be checked in order to avoid any problems if you have to make a claim.  Factors that are usually covered include illness, redundancy and death in the family.  However, it is important to double check, for example to be clear about how the insurer defines ‘close family member’.  If you are aware of something that might happen while you are on holiday, your insurance will not cover it. 

Other Factors That Should be Covered

Personal accident insurance:  your travel insurance policy should cover you for death or for instance, the loss of a limb.  You may think that this cover will be extensive, but that is not the case.  The average pay out for death is about £15,000 and about £25,000 for permanent disablement.

Public liability insurance: this protects you in the case of being sued by someone for something that happened while abroad.

The fact of the matter is that we normally buy travel insurance because we are afraid. Afraid that we will get sick in a foreign country and not be able to pay the medical expenses, afraid that something will happen at home and we have to cancel our trip and lose all deposits, et cetera.

It is therefore somewhat disconcerting to know that the one thing a travel insurance policy will NOT pay out for is for expenses you incur because you are scared. If you go to a foreign country where there are many wild animals and once you arrive there you find yourself too scared to leave the hotel, your insurance company is not going to compensate you for cancelling your holiday.

Similarly, if you go to another country and a volcano erupts near the city where you are staying, without really endangering you, don’t even bother to contact the insurer and try to claim because you want to cancel your trip.

This is, unless you have a policy that specifically contains a ‘cancel for any reason’ clause. These policies are normally substantially more expensive than an ordinary policy, but will cover the cost of up to 75% of cancellation costs you may incur, regardless of the reason.

If you plan to travel to a place where there is a real possibility of terrorism, political violence, earthquakes, volcanic eruptions or other natural disasters, you need to check the fine print of your travel insurance policy to make sure these events are in fact covered. Not all companies do cover them and you might need a special clause in your policy to specifically cover a certain event.

Even if something like terrorism is in fact covered, you must be aware of the fact that there are sometimes exclusions and limitations.