Travel insurance provides financial protection in the event that you encounter certain issues when you’re travelling abroad or on holiday. Typically, it covers a range of possibilities, from lost luggage to the cost of medical care if you become ill or have an accident. We have highlighted below the advantages of taking out travel insurance and disadvantages in the event that should choose not to.
Travelling without insurance could leave you open to picking up substantial bills if something were to go wrong.
Depending on the policy, travel insurance pays out in a wide range of circumstances.
Most policies include cover for:
The exact cover available will vary significantly between different insurers and policies. So it’s important to be familiar with the policy wording before you buy.
A lot depends on the policy and the insurer you go for. But there are a few things that travel insurance policies generally don’t cover, or which might only be available for an extra cost:
It can be difficult to know where to start looking for travel insurance if you have a medical condition.
For contact details of providers who specialise in providing travel insurance for people with serious medical conditions, further information is available by visiting the travel insurance directory or you may refer any enquires in regards to the MaPS directory to the Money Advice Service’s Customer Contact Centre which is available from Monday to Friday, 8am to 6pm: 0800 138 7777
Commonly known as a ‘pre-existing medical condition’, this term covers a lot – from allergies to broken bones.
Different insurance companies have different definitions. But your insurer is likely to consider any of the following a pre-existing medical condition:
They’ll also want to know if you’re taking any medication.
You’ll need to declare all existing medical conditions when buying travel insurance.
If you’re not sure whether to declare, it’s important not to assume it’s covered. Always ask your insurance provider, otherwise you risk any claim you need to make being rejected.
Some policies or insurers won’t cover your medical condition. While others will give you cover but exclude your particular condition or charge extra for it.
Make sure your policy offers a decent level of cover. For example, your medical cover should be at least £1 million in Europe and £2 million for areas outside Europe. And the cancellation amount needs to cover your costs if you need to cancel your trip or return home early.
Most policies will provide at least £1 million in personal liability cover in case you’re sued for damaging property or injuring someone.
While policies can differ a lot in terms of cover, they will generally fall into one of the following categories:
The current pandemic has changed travel insurance policies, and what will and won’t be covered.
Most travel insurance policies being issued now will have some sort of coronavirus cover included. But it’s important to always read the terms of the policy carefully.
For example, if coronavirus cancellation cover is included in the policy, this will usually only apply if the policyholder tests positive for the virus. If you have to cancel because you have to self-isolate or are in quarantine.
If you already have travel insurance, check the terms carefully to see whether: you’re covered: