Why Travel Insurance Is Essential

Finance & Money Blog

Would you go on holiday without your tickets or your passport?  Of course not; so why do so many people head off on holiday without any travel insurance?  Read on to find out why travel insurance cover is essential. 

Travel insurance - the basics

The best way of obtaining the cover you need for your holiday is to have a chat with an insurance broker in your area.  Your travel insurance should cover you for the following basics:

• You should be able to claim on your travel insurance if you have to cancel or cut short your holiday due to redundancy or bereavement.   
• You should receive compensation if your flight is delayed by more than one day.  
• You should receive compensation if your luggage or personal belongings are lost, stolen or damaged.  There is usually a limit for items such as cameras, laptops and the like and this varies between insurers.   
• Personal liability cover is essential in case you cause someone injury or damage their property, meaning that they could claim against you.   
• Most experts recommend medical cover if you are travelling abroad.  This cover should include repatriation costs in case you need to be flown home in the event of an accident or medical emergency.  Double check that pregnancy is covered, if appropriate.  
• Standard travel insurance policies do not generally cover pre-existing medical conditions.  Always declare any health conditions that you have when you apply for insurance cover as failure to do so will invalidate your policy.  If you have a pre-existing illness, you may need to take out separate specialist cover at additional cost, and your broker will advise you on this. 

Non-standard travel insurance

Adventure holidays

If you're planning to go white water rafting, bungee jumping or skiing, you'll need special insurance to cover these types of activities.  This will be more expensive than basic coverage, although it's worth the cost for the peace of mind.

Business travel

Standard insurance policies often include business travel, although you may be better with a specialist policy that covers office equipment (laptops for example) or safety clothing, depending on the nature of your work.

Disaster coverage

It's very important that you read the small print on your insurance policy.  Most firms will not cover you for natural disasters such as earthquakes or floods although many will cover civil unrest, terrorism or riots, particularly if your embassy warns about trouble in certain countries and you have to cancel your holiday as a result.

Most policies will cover you if your travel company or airline goes bust.

In conclusion

Never assume that 'it won't happen to me'.  It's easy to get caught up in the excitement of going on holiday and overlook your insurance needs.  Have a chat with an insurance broker in your area to make sure you're fully covered before you set off on holiday this year.

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28 January 2016