Get it covered! Six things you need to know when buying travel insurance

Arranging travel insurance is a boring but vital part of planning your next dream holiday or weekend break abroad.
Without cover, you could end up having to foot a sky-high medical bill if something goes wrong while you're away.
But don't book any old policy: you need to make sure the cover you are buying is right for you or it can be worthless, so it makes sense to invest a little time in finding the best deal.

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Shattered dreams: Don't book any insurance policy, but make sure the cover you buy is right for you

Choosing wisely can save you tens, or sometimes even hundreds, of pounds in premiums. For the best chance of getting it right with insurance, follow this step-by-step six-point plan:

1. Sort out your travel insurance as soon as you have booked your trip

Why? Because travel insurance policies come with cancellation cover. So if, say, you or a close relative falls ill, and therefore you can't make the trip, you may be able to get the money back you paid for your holiday.
It's only a 'may' because cancellation cover on insurers' policies does come with various restrictions and get-out clauses... you have been warned.

2. Shop around

It's tempting to take the hassle-free option of signing up for the travel insurance promoted on the website of the airline you're booking with, or to take out the insurance offered by your travel agent or holiday company.
But as a general rule, don't: you are likely to find cheaper, and better value, cover elsewhere.
Turn to a price-comparison website such as Moneysupermarket.com (moneysupermarket.com/travel-insurance) or Confused.com (confused.com/travel-insurance), and see what they can come up with.

Holiday dreams: But before you book your dream holiday, it pays to shop around for travel insurance

However, it's imperative not to select a policy solely on price. Cheapest policies can have pitifully low levels of cover for baggage, and punitively high excesses (the amount taken off a payout).

Many travel insurers ratchet up their premiums for OAPs, so if you are aged 60 plus it can really pay to shop around. The price comparison websites above can provide quotes for older travellers from a wide range of insurers.

3. Consider multi-trip policies, and policies for couples and families

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Numbers game: On many family policies, you don't need to travel together to be insured

Do you travel abroad more than twice a year?
If so then taking out an annual, multi-trip policy that will cover you for any number of trips (typically of a maximum length of a month each) within a 12-month period, is likely to reap savings over buying single-trip policies, and saves you valuable time.

It also works out cheaper, and is less hassle, to buy travel insurance that covers a couple or a family.
On many annual policies, you don't need to travel together to be insured.
Again, use the price-comparison websites to flag up competitive annual, couple or family policies.

4. Get the right level of cover

The consumer group Which? only recommends policies with at least £2 million of medical cover for Europe or £5 million worldwide, £1,500 of cover for baggage and personal belongings, and £3,000 for cancellation or curtailment.

For other levels of cover, make sure the policy you're taking out meets your individual needs. Many policies have a single-item limit for valuables of just £200-£300 – which is less than the value of many a smartphone, tablet and computer.
And if you're planning on doing any adventurous activities, check the small print. Depending on the policy, for something like bungee jumping, paragliding or scuba diving, you may need to pay an additional premium or the activity may be excluded from your cover.

 

Also, if you're heading to the ski slopes, check the policy wording: you may find that you will not be covered if you venture off-piste.

5. Be honest about medical conditions

If you have a 'pre-existing' (ie ongoing) medical condition, you must declare it. Doing so may increase the premium, or may result in cover being refused.
But if you are not forthcoming with the insurer and you end up making a claim, your cover may be invalid. You also need to inform the insurer of any medical issues with close relatives, if their health may cause you to cancel or curtail a trip.
Use Moneysupermarket.com to get quotes from mainstream insurers and those specialising in covering those sympathetic to insuring travellers with pre-existing medical conditions.

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Explore the small print: If you're planning on doing adventurous activities, check the policy covers you

6. Get an EHIC

The European Health Insurance Card (EHIC) is available, without charge, to all UK residents. When travelling in the EU and some other European countries, it will entitle you to state, medical treatment (including for a pre-existing condition) on the same basis as residents of those countries – which can mean for free or at a reduced cost.
Another advantage is that some travel insurers waive the excess on a medical claim if you use the EHIC. The card is valid only for five years, so if you already have one, check it hasn't expired.
But don't regard the EHIC as an alternative to travel insurance: it doesn't cover all medical costs such as private treatment (often the best or only option in some countries), repatriation to the UK, or mountain rescue when skiing. Apply on ehic.org.uk