Getting the best travel insurance Why do I need travel insurance

What’s the point of travel insurance?

Travel insurance is a holiday essential that will provide you with financial protection should unexpected events occur while you’re away.

TRavel insurance: Beach chairs and umbrellas

Being on holiday should be relaxing. Travel insurance will cover you if things go wrong while you're away

Many people forget to buy a travel insurance policy, or decide not to bother – but if you’re one of them, you could be exposing yourself to thousands of pounds worth of potential costs should something unforeseen happen.

Travel insurance covers you for a range of problems that may arise while you’re travelling – from the catastrophic to the merely inconvenient.

A good policy will cover you for cancelling or cutting your holiday short in an emergency (such as sudden illness or bereavement), will pay out if your property is lost or stolen and will cover your medical expenses should you become injured or sick while on holiday.

This medical cover is a particularly important for anyone planning to visit a country with no state health service; for example, the United States of America. If you went on holiday there and broke your leg, the cost of hospital treatment and an air ambulance back to the UK could come to tens of thousands of pounds. There have even been cases of holidaymakers going bankrupt as a result of medical debts incurred while on holiday.

Tips for buying travel insurance

1. Always compare a variety of travel insurance deals

Don’t be tempted to buy travel insurance without shopping around for the best deal – even if you’re offered it alongside your holiday or flight. Your travel agent or tour operator is unlikely to offer you the very best deal on the market.

It’s crucial to know you are getting a good quality policy at a reasonable price before you sign on the dotted line. This is important not only to ensure you don’t pay over the odds, but to give you confidence that you’d have an adequate level of protection should you need to make a claim.

Visit the Which? Travel insurance review to compare travel insurance policies.

2. Don’t ‘double cover’ yourself

Before you buy a travel insurance policy, check what cover you may already have in place. If your home contents insurance policy has an ‘all-risks’ clause or personal possessions cover, you may not need additional protection for property you take abroad.

Also, check whether any credit cards you hold offer travel insurance – although be aware that this may only apply if you book your holiday using the card. The cover may also be very restricted, so check the small print.

In addition, if you have a packaged bank account, look at whether this offers travel insurance as a benefit. Which? doesn’t recommend these accounts as we’ve found people rarely take advantage of the perks they are paying for – but if you already have one, it’s worth looking at its terms and conditions to see whether any travel insurance on offer is comprehensive enough for your needs.

3. Read the small print, tell the truth

Ensure you know what your travel insurance policy will cover, and make sure you understand any exclusions it features. If there are parts of your policy you are unsure about, ask for an explanation.

Make sure you look carefully at the excess you are committing to pay in the event you need to claim. Always ensure your excess is affordable, or you could find yourself in financial difficulty later.

Finally, don’t neglect to tell your insurance company about any pre-existing medical conditions you or a family member travelling with you has – no matter now insignificant it may seem. If you don’t disclose these kinds of details to your insurer, you may be refused a payout when you need one. Most insurers will also require you to inform your insurer if you develop any new conditions between taking out the policy and your trip.

4. Get a European Health Insurance Card

The European Health Insurance Card (EHIC) scheme is a reciprocal arrangement between countries that belong to the European Economic Area (EEA), which means people who carry the card will be entitled to state-provided healthcare if they fall ill while on holiday there.

The EHIC is no substitute for travel insurance because it will not guarantee you completely free medical treatment or cover the cost of bringing you back to the UK (‘repatriation’). Nor will it provide you with protection should you lose your luggage or need to cancel or cut short your holiday.

However, it is important to carry an EHIC when you go on holiday within the EEA. You can read more about how they work, and how you can get one free, in the European Health Insurance Card (EHIC) advice guide.

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