Why do I need travel insurance?

Travel insurance will provide you with financial protection should the unthinkable happen while you’re on holiday. The cost of travel insurance is minimal in comparison to the cost of your entire holiday and the bills you could face should something go wrong.

Travel insurance is particularly important when it comes to medical treatment. When you are in the UK you have access to the NHS but abroad there is no similar service, and consequently medical bills can escalate out of control. For example if you have a heart attack in the USA you could clock up a bill of around £50,000 and breaking a leg in Europe could cost you £18,000. You will be expected to foot the bill unless you have adequate travel insurance to cover the costs.

Find the best travel insurance for your needs.

What should a travel insurance policy include?

• The policy should cover the entire period of your holiday.
• Medical and health cover should be for a minimum of £1 million for Europe and £2 million for the rest of the world. It’s useful to take out a policy that has the benefit of 24 hour emergency service and assistance.
• A payout if you have to cancel or cut short your holiday through illness or family bereavement.
• An appropriate limit to cover your possessions if they are lost, stolen or damaged.
• Any activities and sports, excluding extreme sports and other specified activities. Always check which sports are excluded by the policy. Many insurers will extend cover, otherwise search online for a specialist policy.
• Personal liability in case you accidentally cause injury or damage to a third party or their property and they decide to sue you.

Exclusions to be aware of

Always read the terms and conditions to make sure you fully understand what you are covered for. Common exclusions include the following:

• Activities
  Not all travel insurance policies will cover you for taking part in extreme activities. If you are planning to take part in activities such as jet skiing, white water rafting or bungee jumping while on holiday check that your travel insurer will cover you. You may have to pay more to have the activity included on your policy.

• Pre-existing medical conditions
  If you suffer from any pre-existing medical condition always declare it to your travel insurer. Failure to do so could invalidate your policy when you come to make a claim.

• Terrorism
  Most travel insurance policies have exclusions with regards to terrorism. You must check with your travel insurance company as to whether you are covered if there is a terrorist attack in the UK or an attack on your holiday destination and you find yourself in any of the following situations:

  • Injured in a blast and unable to depart on your holiday
  • Unable to travel to the airport or port as a result of transport closures
  • Unable to travel to your holiday destination as a result of an attack on the resort
  • Leaving belongings on transport as a result of an evacuation
  • Injured as a result of a terrorist attack abroad
  • Unable to travel home due to transport closures abroad

  It’s also worth bearing in mind you may not be covered if you want to cancel your holiday because of trouble or instability.

  In the event of an emergency situation contact the Foreign and Commonwealth Office (www.fco.gov.uk) for guidance.