Travelling abroad – should I gamble and not pack my travel insurance and umbrella?

This article isn't meant to question whether you should take out travel insurance or not, because we all know that, as with any policy, you are insuring against a worst case scenario and whilst everyone likes to think it won't happen to them, the fact is that bad things do happen. To not take out travel insurance and find yourself in one of those situations could cripple you financially - with travel insurance costing as little as £10 is it really worth taking the risk? I'd leave the umbrella behind instead.

So here are some questions to help you choose the most appropriate travel policy:

Taking one or more holidays this year?

Single trip travel insurance covers you for one specific holiday, whilst buying annual travel insurance covers you for several holidays over the course of the year, and is usually better value than buying two or three individual policies per year – even your weekend breaks are covered. If you tend to go skiing or take a winter break then make sure you include winter sports cover.

Annual travel insurance also offers the convenience of only having to book once for the year, rather than messing around with travel insurance each time – especially useful for forgetful types. One thing to check though is the number of days the policy covers you for, as some policies impose limits.

Additionally, for those planning to travel to the USA annual policies often work out cheaper than single-trip policies. This is because medical cover in the USA is high and so buying specifically for this country will up your premium. In this case an annual policy could cost less, even if you only you have one trip planned.

It's just my luck that something prevents me from going …

Book travel insurance directly after booking your holiday, so you are covered for cancellation. This applies to annual policies too – we recommend you choose the date you booked the holiday as the start date for the policy. Make sure you know your insurer's terms for cancellation.

Serving personnel need to check that their policies cover them for cancellation because of exigencies of HM Forces, and any limits or restrictions that might apply. Forces Financial travel insurance will pay up to £3,000 if a trip is cancelled due to deployment or exercise, subject to the reason for cancellation not being known at the time the trip was booked, or the policy taken out. Equally if, for example, a family's holiday plans to join a serving partner overseas whilst their ship is in port have to be cancelled because the ship is unexpectedly called away, a Forces Financial policy will cover it.

Am I a mere mortal?

In most cases it is always best to take the medical insurance, even if you are going to a country covered by the European Health Insurance Card as this helps in cases of emergency, but does not generally cover routine problems. It is also especially important if you're travelling in a developing country with limited medical resources.

Declare any pre-existing medical conditions. The contract between you and the insurer is based on 'utmost good faith'. This means you have a duty to disclose anything that may affect the granting of a policy, any exclusions or its price.

Make sure you understand the medical coverage. For example does it cover repatriation to your home country? Does it cover ambulances?

To bungee jump or not?

When you decide on a policy, make sure you know what activities it doesn't cover. Don't count on standard travel insurance if you are planning to undertake extreme or dangerous sports. I know our customers love to challenge themselves, which is why we have underwriters who specialise in this type of cover, so check your insurer does too. Likewise, if you are not planning to undertake dangerous sports then don't buy cover for them, you'll only be paying for something that you don't need.

Cutting corners

You should ask yourself ‘what do I really need to cover?' Generally, insurers recommend the following: medical expenses (£2m), personal liability (£1m), cancellation (£3,000), baggage (£1,500), cash (£250) and a 24hr emergency line and cover for legal costs. However, the amount of cover you need varies depending on your circumstances.

You may be able to lower your travel insurance premiums by purchasing joint cover if you are travelling as a couple. If you are getting a policy for your family, make sure all members are included, as some policies limit the number of people on the policy.

Check if you have All Risks or Personal Belongings cover under your home insurance policy – if you do then it is possible that you will be entitled to a discount on your travel insurance – usually up to 20%. If relying on this double check any time limits imposed by the home insurance provider on overseas cover.

Be aware that travel agents are not covered by the Financial Services Authority, and consequently some over-charge UK travellers for their travel insurance policies. Don't waste hard earned cash that could be spent on enjoying your holiday - to get a correctly priced, regulated product go to an insurer who understands your requirements.

Use protection on holiday

When you book your holiday it's worth paying at least the deposit with a credit card. This gives protection for the whole cost of the holiday, under Section 75 of the Consumer Credit Act, as long as the payment exceeds £100.

If you book a package holiday through a member of the Association of British Travel Agents you will get your money back if the tour operator goes bust.

If you are putting your own holiday together make sure you book accommodation with an ABTA travel agent and flights with a provider which holds an Air Travel Organiser's Licence - if either go bust your money will be refunded.

Insurance companies are also growing increasingly concerned about fraud, especially with travel insurance. If you claim for anything that has been stolen they'll probably want evidence that you actually owned the item in the first place. Keep photos at home of valuable personal belongings that you've taken with you. Some insurers even ask for receipts!

And you know it makes sense but …

Don't expose yourself to unnecessary risks – build enough time into your travel plans to allow for contingencies, whether in travelling to the airport, making flight transfers or arranging holidays during deployment R & R periods.

Given nothing in life can be guaranteed, if you know your lifestyle or career makes planning ahead difficult last minute travel deals available on the High Street and internet could work well for you, and reduce the likelihood of having to make a cancellation claim.

Happy holidays!

Al Voice, Managing Director, Forces Financial



Recent News >

News Archive >