Holiday Insurance

Why take out travel insurance?
 
Travel insurance offers protection for people on holiday or when travelling away from their home. Everyone wants their holiday to be enjoyable but unfortunately, there can be problems. Insurance can cover the cost of health care abroad, lost or stolen belongings and for the holiday itself if sickness or other problems force the cancellation of a trip. Travel insurance may seem like an optional extra but, as hundreds of thousands of people find each year, it buys more than peace of mind.
 
Where can I buy travel insurance?
 
Travel insurance can be bought from general insurance companies or specialist providers. It is also often bought through your holiday company or travel agent when you book your trip. In these cases, the person selling the policy may not have the specialised insurance training which will enable them to answer all your questions. But the fact that travel companies sell so many policies can help them keep down the cost to consumers.

The ABI Code recognises that this can be a benefit to consumers so relaxes the requirements on those selling travel insurance. They must still point out the main features of the policy to you but it is even more important to check carefully that it meets all your needs.

What do I need to check?

You need to check the policy covers you for the amount of time you are away and also for your destination. You can chose policies which last a fortnight or for all travel within a year. You can travel insurance for trips within Europe, further afield or world-wide. If you are planning to go to more dangerous parts of the world or take part in activities like skiing which are more likely to lead to injury, you have to make sure the policy covers you. The cost of policies will reflect how long you are away, where you go, what you intend to do and the amount of cover you want. It is important that you choose a policy which meet all your needs. 

What do I need to take with me on holiday?

Your insurer will send you a policy document which will contain all the details about the cover you have bought. It will contain the cover you have bought and any exclusions. You must read it carefully.  Your policy will also have a unique number and also tell you how to make a claim and, importantly, give you emergency numbers to contact your insurers. These are very important and must be taken with you.  It is often a requirement of your policy that you contact your insurer quickly if you fall ill and need health care or have property stolen.  Failure to do this might result in your claim not being met. So it is essential that you have with you your policy number and emergency contact details for your insurer.

Policy document

You should read the document carefully. It gives you full details of what is and is not covered and the conditions of the cover. Cover will vary from policy to policy, in each individual section and from insurer to insurer. It is also important that    

Health

Your policy contains conditions about the health of the people travelling and of other people upon whose health the trip may depend. You must let the insurer know of any health conditions afflicting those on the policy, otherwise you may not be covered.  

Hazardous activities

If you are going to take part in activities with a bigger risk of accident or injury, including ski-ing or water sports, check that the policy covers you. You may have to pay more, for example, to cover winter sports.   

Property claims

These claims are usually paid on the value of the goods at the time you lose them and not how much it will cost to replace them unless a ‘new for old’ clause is included in your policy. Your policy document will set out what proof the insurer needs to support a claim.  

Policy limits

Your policy is also likely to contain maximum amounts that the insurer will pay under most sections. There may, for example, be a limit to the amount you can claim for lost luggage or for any one item. You are advised to check your policy if you intend taking expensive items with you.  

Policy excesses

Under most sections of the policy, you will required to meet the first part of each claim with the insurance company picking up the bill for the rest or ‘excess’.  The cost of policies can depend on the level when the excess begins.  

Reasonable care

You need to take all reasonable care to protect yourself and your property, as you would if you were not insured. If you don’t, the insurer is within their rights to refuse to pay out.   

How to make a claim  

The insurance policy will give you details of how to make a claim. Importantly, it will also contain emergency numbers for you to ring when abroad.  

Complaints

Your insurance policy will have in it a complaints procedure which tells you what steps you can take if feel your claim has not been handled fairly or efficiently.  

 ‘Cooling off’ period

Your policy may have a ‘cooling-off’ period during which you can cancel the policy and get a refund if you have a justifiable reason for being dissatisfied with the cover it provides.