Travel Insurance Policy - To Have Or Not To Have
Every year millions of Brits flee the humdrum of their 9 to 5 working day for an average of 2 weeks in a chosen holiday destination. Recent surveys have produced alarming figures showing that 1 in 5 UK travelers are willing to set off on their travels without any form of valid travel insurance. So why is this?
It is common knowledge that travelling abroad has now become a lot cheaper, with so many travel companies offering cheap budget flights and package deals to choose from. However, at the time of making out our holiday shopping list, it is becoming increasing popular to deliberately miss off travel insurance. To so many, travel insurance is seen as an unnecessary extra. Why should we bother when we never use it? Right there lies catch 22.
While we may think that nothing will happen during our time away, a valid travel insurance is crucial for claiming on cancellations, lost cash, theft, public liability and the all important emergency medical treatment. Is it not therefore so much better to be prepared and have peace of mind should anything go wrong? Travel insurance is surely a minimal expense in comparison to the total cost of a holiday and the potential bills we could be faced to pay should disaster rear its ugly head.
There are several important factors we should consider and remember the next time we choose not to take out a travel insurance policy.
- If a holiday has to be cancelled due to illness, how would we feel if we were told we were not entitled to a refund? No one can predict if they will become ill on holiday or even be involved in an accident however, medical emergencies are by far the largest single causes of any travel claims. According to Norwich Union, over £23 million was paid out in medical claims last year alone with an average of £1,200 per claim. Surely the expense of travel insurance is well worth the cost?
- What would we do should we need urgent medical treatment whilst abroad? Healthcare is not automatically free in Europe. The European Health Insurance card, which has now replaced the E111, will only provide minimal medical care and treatment. Each state system in Europe is different on what basic services it provides. What services provided free in the UK on the NHS may not necessarily be available abroad unless of course we are prepared to actually pay for them.
- Should our luggage go astray, be lost or stolen, how much would it cost to replace? Replacing valuables such as mobile phones, cameras, clothing etc would cost far more than the travel insurance premium which would pay for any replacement.
- When relying on a credit card it is important to always read the small print. Although there are credit card companies which provide comprehensive travel insurance, many only cover travel accident insurance.
- Luggage lost in transit through fault of the airline company is not automatically covered by the guilty party. Many believe the Warsaw Convention will more than cover any loss or damage however it must be noted that any liability is extremely limited and applies merely to international air travel. Travel insurance policies cover a far greater compensation than that offered by any airline company.
- Accidents and thefts can strike at any given moment, so whether we are only planning an overnight stay as apposed to a fortnight, it is vital be make sure we are covered the moment we lock and leave the door of our homes behind us. A good 50% of travelers deny themselves any travel insurance for the sake of running the risk during a short break away.
As there are so many travel insurance policies on the market, it is vital we know exactly what the policy protects us against before we decide which one best suits our needs. Our policy requirements will naturally be relevant to the type of holiday we are proposing.
Essentially a good policy should include cover for the entire period of the holiday, any activities or sports (excluding hazardous or other specified activities) and do check beforehand which sports are excluded as a specialist policy may be required for extra cover, medical and health cover for a minimum of £1 million for Europe and £2 million for the rest of the world with 24 hour emergency assistance, personal liability cover to a third party, payout for cancellation due to illness or bereavement, repatriation costs and an appropriate limit to cover personal possessions.
In conclusion to the importance of travel insurance, no excuse to travel without it can counter the vulnerability and risk of unwanted stress and unnecessary expense.
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Published on September 19, 2007
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