Travel Insurance – Are You Really Covered?

Ok…so this is not the sexiest of subjects. I much prefer talking about luxurious cruise ships, fabulous food and fantastic destinations, but travel insurance is something we all need and is a pretty serious subject.

Just this week one of my colleagues had a customer who had to cancel their £6,000 cruise holiday due to her hubby contracting an illness and the doctor not allowing him to travel. They were due to travel in just over a week and guess what…they had no travel insurance. Despite pleading phone calls to the cruise line they stuck to their very clear terms & conditions and it was 100% cancellation fee. I have come across situations like this many times and whilst I have sympathy for the people involved I can’t help feeling incredulous that people don’t have adequate travel insurance.

Whilst not tarring all insurance companies with the same brush, it’s widely thought that they try any way possible to get out of actually paying out a claim. Prices and levels of cover are different and you may be surprised that some things you would automatically covered for Here are a few tips & things that you need to consider.

* BUY IT ASAP! A general rule of thumb is that as soon as you have a holiday booked purchase your travel insurance. A huge chunk of what you pay for is cancellation cover. Many people don’t buy their insurance until just before they go which means they are paying for a service that they could have been using for months. This would have avoided the situation above. You can buy  a policy that will cover you from the date of purchase for cancellation even if you’re not travelling for 18 months.

* DECLARE PRE-EXISTING CONDITIONS – Ensure you declare any on-going medical conditions. If unsure if it will affect your cover still declare it. In some cases you may pay an increased premium or have to shop around to get cover, but what’s the point in not coming clean and therefore not being covered if something goes wrong. It’s worth noting that many providers include mental health conditions as a pre-existing condition.

* CONSIDER PEOPLE WHO ARE NOT TRAVELLING – If you have a close family member who has an on-going illness this also needs to be declared. If not and you have to cancel your holiday because their health deteriorates then you will not be covered & it will be money down the drain.

* CHECK YOUR COVER – Many people get free cover from their banks or credit cards, but do you actually know what it covers you for? You need to ensure that your policy will cover your needs & this could mean upgrading the free policy. Did you know that some policies have a limit of cancellation cover? You may have a holiday booked that costs £2000 per person, but your insurance cover may only be for £1000. Some policies will only cover for dental costs if you can prove you have regular check-ups in the UK. Some extreme sports and outdoor activities are not covered, so if you’re on a more active holiday it’s best to check. it’s worth pointing out also to check the excess. I have seen some policies that charge you the first £250 for any claim. You can sometimes pay a little extra to reduce or wipe the excess out completely.

* IS EVERYONE COVERED? I once came across a situation where a Dad took his son on holiday & assumed he was covered under his bank’s free insurance policy. It transpired when he tried to make a claim that because his son lived with his ex-partner and not himself he was not included in the cover.

* CONTACT YOUR INSURANCE COMPANY IN A MEDICAL EMERGENCY – If you get ill or injured while abroad and need medical treatment which requires a hospital stay, unless it’s a life-or-death situation, it’s worth calling your insurer to confirm that they will cover costs incurred for treatment at the hospital or medical centre you’re heading to. For example, many insurers won’t cover treatment at private hospitals, even if the hospital in question is the closest one. Without authorisation you’ll be footing the bill & not them.

* CHECK YOUR DURATION COVER – Some insurance providers have a maximum duration cover, so if you’re lucky enough to be able to go on an extended holiday make sure you’re covered for the full amount of time you’re away.

Just a few tips there and as I said it’s a pretty boring subject, but take time to get your magnifying glass out and read that small print. It’s worth investing time in making sure you are covered for every eventuality. It could save you thousands of pounds and a whole lot of hassle in the long run.