With much of the UK experiencing large amounts of snow, many are taking this as an opportunity to search for their summer holidays.
However, with household budgets feeling the squeeze, many are looking to spend as little as possible on their holidays, and it seems that one area that many are ‘skimping out’ is on travel insurance.
According to statistics from the Foreign Office; 20% of people are now are now travelling abroad without valid travel insurance, because of this others are identifying insurance as an area they could save money on the cost of their holiday. This got us thinking; do we really need travel insurance?
What does travel insurance cover us for?
Travel insurance covers us for a number of things, these include:
Theft or Missing Luggage – Most policies will cover for theft or loss of personal belongings when you’re away. However prior to claiming off your insurance, you must first report the theft to the police, without the police report the insurance company will not investigate your claim. Different levels of cover will cover for different amounts, so if you are planning on travelling with expensive items; it may be worth considering premium cover.
When searching for cover, be sure to include baggage cover for the value of your luggage, you will often be able to manipulate the excess you pay.
Cancellation – If, for selected reasons you are not able to travel many policies will cover the cost of a refund. Whether your insurer pays out will be dependent on the reason you are unable to travel, valid reasons will include: death or serious illness of close relatives, natural disasters or even jury service, invalid reasons will include drug use and self-inflicted injury or illness or emergency business reasons.
The vast majority of policies now include cancelation cover ranging from £1000 to £5000 with excess ranging from £0 to £100. The amount of cover that is suitable for you will depend on the cost of the holiday.
Medical Expenses –The majority of policies now cover for the cost of hospitalised illness or injury while you’re away. Typically the lever of cover ranges from £1m to £15m, with small amounts of excess. Much like cancellation cover, providers are unlikely to pay out if the injury or illness is self-inflicted.
Types of Covers
Typically, there are three types of policies available these days:
Single Trip – These are designed for one-off cover, this policy is best suited to those who are looking to travel once or twice a year.
Annual Cover – This cover is designed for those who travel on a regular basis and covers a person all year round.
Gap Year – As expected, this cover is designed for those who are looking to go on a gap year.
Typically, single trip cover will be the cheapest and gap year cover will be the most expensive purely based on the risk involved and the likelihood that the cover will be needed.
Your destination will affect the price of the cover two, for example if you are going skiing or on a winter sports holiday, the likelihood of injury will be greater therefore the price will be higher, whereas if you are simply going for a quiet week in Europe the price is likely be lower.
If you already have a pre-existing medical condition, the quotes you receive are also likely to be higher.
Is it worth it?
In simple terms, yes. When you take into account how much it could cost if you were to fall ill, lose your luggage or get injured in comparison to the cost of insurance- it’s a no brainer.
