Finding the Right Travel Insurance

By: Nektaria Stamouli
14-May-2010

Before we even noticed, we are in the middle of May. Summer is fast approaching and together with them our long-awaited summer holidays. Most of you have already started organising your summer excursions. As holidays are supposed to be stress-free, you should make sure travel insurance is at the top of your holiday list- even before your suntan lotion.

Travel insurance can give you the peace of mind of knowing that when you're travelling away from home, you're covered if your luggage were to get lost or stolen and your medical expenses would be covered if you fell ill. There are different types of travel insurance including annual and single trip holiday insurance, families and business trips. You can also find winter sports cover, golf equipment and scuba diving cover and insurance for backpackers and lost or damaged baggage.

Travel insurance was once considered to be a 'nice to have' product rather than an essential. However as we've seen recently that strikes and ash clouds are only two of the reasons that can hold you up on your travels, and so saving a relatively small amount by not getting yourself covered could prove to be a false economy.  The insurance doesn't need to be expensive, and any accident or illness while overseas or any last-minute flight cancellations can leave many passengers out of pocket and far from home so it's much better to be safe than sorry.

Points to consider when buying Travel Insurance

When applying for travel insurance you will be asked to fill out a form with personal information, such as your date of birth, your gender and whether or not you are a smoker.  These information are going to be matched against statistical data to decide how likely you are to make a claim and the final cost of the insurance will depend on the information you provided.

A single trip travel insurance policy is certainly the cheapest option. However, if you are of the lucky ones going on holiday twice a year or more, you should go for an annual or multi-trip policy. By choosing this option, you can save time - since you won't have to compare insurance policies each time you travel - as well as money. Just remember to check in advance of your trip that your policy covers you in each place you're travelling to and covers you for all the activities you're planning.

You should also take into account the age restrictions that insurance might have. Standard single trip, multi-trip or annual travel insurance policies typically provide cover up to a certain age. Therefore, if your birthday falls during the insurance policy term, you should double-check that you're still covered or whether you need to update the policy.

The most important you should consider is what to expect to be covered for medical emergencies. Pre-existing medical conditions are very rarely covered and would require a specialised travel insurance policy. The cost of getting treatment abroad varies a lot. Most policies cover expenses up to between 2m-10m pounds. Two million pounds should be the absolute minimum, but you can get much higher limits, especially if you are planning high- risk activities, such as skiing.

Nowadays, the main cause for concern amongst travellers is cancellation, and the news has been full of stories recently about the trouble that people have had claiming for cancellations caused by the aftermath of the Icelandic volcanic eruptions. So make sure your insurance policy covers you for any eventuality- or most of them at least- to avoid any nasty surprises. And note that many policies only cover you once you have checked in.

If the most extreme that could happen to you is getting sunburned, then extra sports cover definitely won�?�?�?�¢�?�?�?�?�?�?�?�?t be necessary for you. But if you like the more extreme brand of holiday and you are into skiing, bungee jumping and other high-risk sports and activities, you'll need to cover yourself for these and of course pay extra. The insurer will usually specify which of these activities they will cover as standard.

Lost property is also an important aspect to consider. You can get your luggage insured for a little extra, so that you will get some money back if it ends up on the wrong place. You may also get a daily amount if you are abroad and are left without your luggage. However, this is not the most important aspect to consider and might be a pointless expense, especially if you are travelling with just clothes and non-valuables.

Most policies will include excesses. When you compare travel insurance you need to have a look at how much excess you will have to pay should you get injured, require medicines, lose your luggage or have your money stolen. You will have to pay a small excess per feature you wish to claim for and the excesses will be detailed in the policy document - so have a read before you decide to make sure you're happy with the various excesses.

It is important to compare the level of cover and benefits included in each policy, not just the price and find out which one suits your own needs. According to a research by Sainsbury's Bank, over 25 million pounds worth of claims will be turned down because people take out the wrong insurance for their needs. So make sure you take the time to do a proper search and enjoy your holiday with peace of mind.

To start your search, check out Travel Insurance Web for single or multi-trip policies.