Lots of people find the term “travel insurance” scary because of the very expensive word “insurance”. This is a very dangerous misconception that has cost many people a lot of money. A recent story that hit the news involved a couple who had to be removed from a plane against their will before take off after one of them became very unwell. They were refusing to leave the plane, stating that they did not have travel insurance and would lose thousands if they missed their flight.
Yes, travel insurance can be expensive, but it really doesn’t have to be. The following are a few tips that could help you get some peace of mind and protect your holiday without having to sell a kidney.
Decide what you want to insure
A lot of travel insurance policies out there come with a lot of bells and whistles that you might not necessarily need, but which would cost a lot if not removed. The main things you want to cover are the expensive elements of the holiday – flights/travel, accommodation, and medical expenses. If you miss your flights or they get cancelled, you may not always be offered an alternative that suits you, which could then result in you being unable to stay at your accommodation and losing money too. Or you might need to cancel your whole holiday, which is a worst-case scenario but it does happen. Alternatively, if there is an issue with your accommodation and they cannot provide you with alternatives, they might just refund you. The issue with that is having to book new accommodation very close to your stay, which might be a lot pricier than when you booked it months before. And with medical expenses, it goes without saying that these could amount to tens of thousands in a foreign country, especially in the US where the prices are astronomical.
On the other hand, there are other options that may or may not apply to you depending on your circumstances. Legal fees, luggage insurance, insuring gadgets and personal possessions, pet insurance, money/cash insurance, admissions insurance – these may be nice to have, but they do add to the price of your insurance and are not necessarily needed. Think about what you are getting from them, and the chances that you would need them. If you feel that you are more prone to losing your phone than others, then insuring personal possessions might be for you, but it’s all a judgment call depending on how much it adds to the premium and whether you think it’s worth it.
Shop around and compare
There are so many comparison websites that offer affordable travel insurance that the best thing you can do is shop around for the best price. When you get your first quote, note down what it includes and what amounts are insured – i.e. Flights up to £3,000, accommodation up to £2,000, luggage up to £1,000 etc. Then compare the next quotes with these amounts in mind. If your flights and accommodation are cheaper, there is no point going for more cover, as the only thing this would achieve is a higher premium.
Two important things to note. Firstly, be honest about pre-existing medical conditions for all travelers, because missing some out might invalidate your insurance. Secondly, remember that l sites like Quidco may give you cashback if you buy travel insurance using their comparison service, which would make your insurance even cheaper.
Packaged bank accounts
If you travel frequently, you might be better off opening a packaged current account instead of individual travel insurance every time. Packaged accounts come with all sorts of perks such as travel insurance and gadget insurance. If you already have a packaged account, chances are you have the travel insurance, but it is worth checking what it covers you for, as there would be limits to the amount you could claim. Also, this is just a reminder that you have been with your bank for a while, it might be worth shopping around for a new packaged account that has cheaper fees, more perks, or even a switch offer that would give you free cash if you transfer across.