Getting the right travel insurance

Get the right travel insurance

Travel insurance is essential when you go abroad on holiday. Our research shows that the best deals can often be found by going direct to an insurer rather than buying through travel agents or banks.

Where to buy

According to a survey of Which? members, 55% of you buy your travel insurance direct from an insurance company rather than through a travel company, bank or building society. You are already on course to save money if you are one of this group.

However, a quarter of members buy their travel insurance from other sources. This includes 8% who took their last policy out through their travel agent, tour operator or airline when they booked their holiday or flight.

The internet should be your first port of call. Some of our Best Buy insurers, such as Travel Insurance Web, Insurewithease, and Yourtravelcover.com operate only online, and others offer lower premiums online than for policies bought over the phone.

What to buy

If you make multiple trips a year, take out annual travel insurance

If you take more than two or three trips a year, it’s worth taking out an annual travel insurance policy instead of a single- trip policy each time. Annual policies save time and money and our survey showed that two thirds of you already buy one of these instead of separate policies.

Taking out three single-trip family policies (two adults and two children) for one 15-day holiday and two seven-day holidays in Europe would cost a total of £45 with a Best Buy company, but an annual family policy for Europe costs just £41.

Make sure you tell your insurer if you or anyone you are travelling with has a pre-existing medical condition or you may not be covered. This does not just include serious illnesses – any health problems in the past or present could affect your policy.

Your rights

Insurance companies must be regulated by the FSA, so you can complain to the Financial Ombudsman Service (FOS) if you can’t get a satisfactory resolution to an insurance problem from the insurer.

Until recently, travel agents were not covered by financial regulation if they sold travel insurance as part of a package holiday. This meant you couldn’t complain to the Financial Ombudsman Service if you are unhappy with the service you received. This changed in January 2009, when any travel operator selling travel insurance become regulated.

Bank package account deals are poor value

Around one in six Which? members has travel insurance as part of a ‘packaged’ bank account or credit card. However, we have found that packaged bank accounts, which charge a monthly fee for benefits such as travel insurance, are rarely good value.

If travel insurance is the only benefit you use, you may be better off with a Best Buy free current account and a Best Buy travel insurance policy.

Travel insurance essentials

Decent travel policies cover the cost of an air ambulance to get you home if needs be

Some of the benefits of travel policies are rather hollow – for instance, the paltry sums paid for travel delays, or legal expenses that exclude action against the tour operator i.e. those most likely to be responsible should things go wrong. Any decent travel policy must include:

• up to £2m cover for medical expenses, including the cost of an air ambulance to get you home, should this be necessary
• up to £1m cover for personal liability – enough to pay the legal fees and damages if you accidentally injure someone or damage their property and get sued
• a 24-hour telephone helpline to help you with advice and assistance in an emergency

Checklist

• Shop for travel insurance online to save money.
• Buy directly from the insurer rather than a travel agent to get the best deal. 
• Tell your insurer if you or anyone you’re travelling with has any pre-existing medical conditions.
• Buy an annual policy if you take more than two or three trips a year.
• Visit www.which.co.uk/money for more information and more Best Buys.
• Check to see if the policy includes Scheduled Airline Failure Insurance - which will protect you if you are left stranded abroad.