Essential - but do you really know what you are getting for your money? (Travel Insurance in general)

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Product:	Travel Insurance in general
Date:	29/08/02 (484 review reads)
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Advantages: It is an essential for every holiday

Disadvantages: Exclusions, Travel Agent Policies Are Expensive, Free Policies are usually inadequate

OK, you're a traveller - one of the intrepids who takes your family off to the Mediterranean once a year.

You spend hours checking out the resorts, research on the web what other visitors have said about the place that takes your fancy and you then make a booking.

At this stage, most of us switch off. And this is a big mistake!

Mistake number one is that as many as 25% of us fail to take any form of Travel Insurance policy to protect ourselves and our families.

Mistake number two is than many of us think an E111 health form from the post office provides us with full care! In France, for example, you will have to pay for at least a third of your costs - which if you spend weeks in hospital recovering from a road accident will exceed £10,000!

Mistake number three is to rely on Travel Accident Insurance provided by your credit card. This is NOT Travel Insurance. While it pays out a juicy £50,000 if your plane ditches in the Alps, killing you, it does nothing if you sprain your ankle playing football on the beach.

Mistake number four is to rely on insurance provided by a fee charging bank account. The cover is usually totally inadequate, and only covers the card holder! Not much help for a family of four!

Mistake number five is to rely on "free" cover "bought" from the Travel Agent taking your booking. These policies are racked with exclusions, multiple excesses and inadequate levels of cover and, in severe cases, will leave you thousands of pounds out of pocket. The problem is, you only find out how good a policy is when you claim - and most of us are fortunate enough not to need to!

Mistake number six is to buy from a travel agent or tour operator. These places dominate the market, yet usually charge twice as much as equivilent policies you can buy from a bank or direct provider.

So, I've let you know some of the pitfalls. But what should you look


out for in a policy?

Well, the most distressing times on holiday come in the case of medical emergency. Medical costs worldwide are expensive and rarely free at the point of purchase. Typical consulataion charges are £75, to see the equivilent of a GP. Hospital care can cost £300 a day. Flights home for somebody discharged from hospital can cost £2,000. So it is essential to be properly covered! Some of the "free" policies will have exceptionally low limits for medical costs - if you are seriously considering buying a "free" policy, ask the Travel Agent to compare cover on the free poicyto the policy they'd sell full whack for. BIG differences!

Excesses are common place in travel policies. Typical excess will be £50 per claim. This isn't too bad, unless you discover a little clause that says £50 per person per claim. If all your suitcases disappear in transit, you have yo pay the first £200 for a party of 4! Look for a policy that only applies one excess.

Other exclusions on inferior policies can be no payments for airport delays. If you end up stuck in an airport for 20 hours waiting for your flight, you will probably want 3 meals, magazines, newspapers, games etc to entertain yourselves. This can again approach £200 for a typical party - don't be beaten by no cover or the multiple excess denying you a payout.

Most Travel Insurance policies include cover for personal possessions. It can be pretty traumatic having your camcorder pinched on the beach in Magaluf. It's even worse when your travel insurer refuses to pay out as you already have cover on your home contents policy and forces you to claim from you home insurer instead. This is perfectly legal too! So, if you have cover on your home contents policy, look for a travel insurer who will discount your premiums for excluding personal possessions cover - a 20% is probably reasonable. Oh, and if you are the victim
of th
eft m
ake sure the local police and tour rep have a report to substantiate your claim.

Many sports are excluded too! Smash in to a cliff face while paragliding and most travel insurance policies won't pay! If you plan to partake in exotic sport, make sure your policy covers you before you travel, not while you are in the back of a Greek ambulance! Remember, exotic may simply be jet-ski-ing, scuba diving or power boating. Check!

Cancellation cover is also crucial - will the policy pay out for the whole family if your little one falls ill the night before you fly, it will it only pay for one adult and one child, effectively splitting the family for two weeks!

So, in summary, you really MUST have a travel insurance policy. My advice is to pay for one from anybody other than a travel agent. And read the small print first - especially the bit about "pre-exsting medical conditions"!

What does "good" look like then?

Policy excess of £50 per incident or less (NOT per person per incident)
No excesses for delayed baggage cover
Cancellation Cover £5,000 plus
Medical Emergency £10million plus
Baggage cover £1,500 plus
Delayed Baggage £200
Personal Belongings £1,500 (£500 for cash)
Discount for excluding personal belongings cover as you?re contents policy already covers you!
Personal Liability Cover £2million or more

There should be a lot more in there too!

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