Travel Insurance

It's surprising how few people take out travel insurance, or pay attention to what is covered by their travel insurance policy. Given the cost of travelling, hotels and tours and the likelihood that you will be delayed or injured or have belongings or important documents stolen or lost, a good travel insurance policy is an easy way to minimise the disruption and distress caused by such events. Anyone who has ever had an airline lose their suitcase was probably shocked to learn the paltry amounts the airlines are, by law, obliged to reimburse travellers for their lost goods. Similarly, air or rail delays may mean you miss an important connection, and even if the delay was no fault of your own you may still find yourself paying for a whole new ticket. If the worst happened and you were to fall ill or be injured, medical costs in foreign countries - the United States is one example - could be crippling without insurance to cover medical expenses and repatriation. Travel insurance policies come in many term lengths, ranging from the specific length of your trip, to one-month coverage for an extended holiday, to several months' coverage for travellers such as backpackers, all the way up to annual coverage for the most frequent travellers. Different policies will cover varying amounts of loss and expense and have different exceptions and deductibles. Not all travel insurance policies are appropriate for all forms of travel, however. An annual policy may be too much coverage for a couple going to the Costa del Sol for two weeks each year; similarly, a cheap policy from an online travel agent may not cover longer periods of travel or certain activities, such as skiing or scuba diving. There are many types of travel insurance policy and many travel insurance providers, but only Moneynet.co.uk can direct you to the best travel insurance deals around. As a financial data comparison site, Moneynet.co.uk helps you sort through the deals to find the package that best suits your travel needs.
What should your travel insurance cover?Probably the most important coverage you need to arrange is for medical expenses. However, countries in the European Economic Area - which includes EC countries as well as Norway, Liechtenstein and Iceland - provide reciprocal health services. You need to take a completed E111 form (available at the Post Office) with you when you travel. The E111 does not, however, provide repatriation coverage. Travellers should check the Department of Health website (http://www.doh.gov.uk/) for more details, as during 2005 the UK will be adopting the European Health Insurance Card (EHIC) in place of the E111 form. Some other countries have different forms of reciprocal health services, but you will need to check with the DoH before travelling to establish what medical services you will be entitled to under the agreement. If in doubt, travellers are advised to take out travel insurance to be safe. Travel insurance policies will have clauses dealing with existing medical conditions, and many will not cover any illness related to existing conditions. Heart patients, people with HIV and those suffering from other illnesses may have difficulty finding coverage; the elderly may have difficulty as well, even without existing medical conditions. Check with a specialist company like Saga for the best deals for older travellers. Many people will want to make sure their travel insurance covers them for sporting accidents, such as for skiing. Winter sports cover is usually available at extra cost, as is cover for specialised activities such as scuba diving. If you plan to partake of any so-called extreme sports, however, your policy is less likely to cover them, so always check before taking part in an activity. You may need to speak to a specialist provider such as Activesure.co.uk or look at 'extreme activity' policies from companies like Endsleigh. It's also important to ensure your policy covers your length of trip. An annual policy, though covering various trips throughout the year, will likely not cover individual trips of more than 31 days. If you're buying a single-trip policy, or travel frequently on small or local airlines, be sure your travel insurance provides adequate cover in case of delays, cancellations and lost baggage. Even having to pay the cost of staying in a hotel an extra night can be expensive; paying for entirely new flights after a delay and missed connection can be prohibitive.
Who should I buy my travel insurance from?Contrary to what many people are told by their travel agent, it is not required by law to carry travel insurance. However, it is highly recommended. If you are holidaying on a package deal, your agent or operator will probably try to sell you their own travel insurance for the trip; although convenient, this is one of the most expensive coverage options and travellers are advised to arrange travel insurance separately instead of paying up to twice as much through a travel agent. Since January 2005, it is especially important to avoid the travel agents when buying travel cover; from that date, the insurance industry falls under the regulation of the Financial Services Authority, giving that body the ability to investigate and take action on behalf of consumers. Tour operators and travel agents, however, are not subject to this regulation, so if you have a complaint about travel insurance purchased from a travel agent, the FSA and the Financial Ombudsman Service will not be able to intervene on your behalf. Luckily consumers have a great many options when it comes to purchasing travel insurance - from the big financial service providers to high street providers. Insurance companies and banks offering different types of travel cover include Churchill, Columbus Direct, Direct Line, Go Sure, Kingfisher, Norwich Union, the Royal Bank of Scotland, AXA, Lloyds TSB, Egg, Abbey, Halifax, Nationwide, Britannia and NatWest - to name only a few. Check with your other insurance providers to see if they offer travel cover - many companies such as the AA, Auto Direct or BUPA, which focus on other types of insurance, offer travel insurance policies as well. If you'd like to buy your travel insurance while you go about your daily errands, consider the various policies offered by such high street names as Tesco, Marks & Spencer or the Post Office.
What do I need to know about making claims?First of all, don't be one of the nearly 50% of people surveyed by the Association of British Insurers who would be willing to submit a fraudulent travel insurance claim - this only leads to higher premiums for everyone. Inflating your claim makes the process of getting the payout harder for everyone else, and it could also be a criminal offence leading to prosecution. The first step with any travel insurance claim is to ensure that the policy you hold covers you for the particular loss. For goods, there will likely be maximum amounts for each item, and loss may not be covered. As for medical claims, check what your coverage is for emergencies, longer-term care and medications, and again be sure to declare any pre-existing medical conditions when you buy the policy. Find out if your insurer expects to be told of every activity you plan to take part in on holiday. It may seem silly to let them know about a little hiking, golfing or sailing, but insurance companies need little excuse to wriggle out of paying, so don't make it easier for them to do so. Take your policy with you when you travel - or a copy of it - and list details of any very expensive item (camera, jewellery, etc.) you plan to take as well. Ensure your valuables, passport and extra cash are locked in the hotel safe as much as possible. If and when something is stolen, if you plan to claim for it, report it to the police immediately. Many companies will not pay out without a police report. For medical claims, make sure you keep all the paperwork, receipts and forms involved in your hospital. Again, take a copy of your policy with you on holiday and familiarise yourself with the steps they require you to take when making a medical claim.