Travel Insurance :
What does it cost?
In respect to the amount of grief and hideous expense an accident abroad can cost you, travel insurance is laughably cheap. For around £25 a week, it buys peace of mind.
However, most of us in Britain are paying over the odds for our travel insurance.
We take the first deal on offer, whatever the price - and whether or not the insurance offered - is right for us. So many of us jet off to sunnier climes with travel insurance that simply doesn’t cover us.
Look beyond the travel agent
If you buy your insurance from a travel agent, chances are you’re paying far more than you would if you bought it elsewhere.
Research by financial statistics provider Defaqto reveals that UK holidaymakers waste up to £250 million every year buying their travel insurance from travel agents rather than shopping around for more competitively priced and more comprehensive cover.
Policy checklist
So what should you look for in a travel insurance policy? Levels of cover vary widely, but the Consumers’ Association recommends that you should have:
At least £1m of medical cover in Europe.
At least £2m in the States and the rest of the world.
At least £1,500 baggage and belongings cover - and watch out for policies which limit the amount you can claim for any one item. Check that the total covers you for what you’re actually taking abroad.
Personal liability of at least £1m, to cover you if you cause injury or damage.
Compensation for trips which may be cancelled or curtailed – and the costs of getting you home in an emergency.
A 24-hour emergency line, and cover for your legal costs as well.
Membership of the Financial Ombudsman Service, in case you need to complain – the Ombudsman can intervene and make your insurer settle.
Getting more for your money
Since most of us take a couple of trips a year, you can drive down insurance prices by considering an annual policy which covers your summer holiday, your winter skiing and the odd impromptu weekend break or two as well.
Most annual policies allow unlimited trips as long as you don’t spend more than 31 consecutive days abroad at one time.
Families too can save money by shopping around, since many policies charge for every person travelling. So look instead at a policy that offers cover for both parents and children.
These are available on a single trip on annual basis, depending on how often you holiday.