Travel Insurance Guide

Why Is Travel Insurance Important

In the year 2002 over 40 million holidays were taken abroad by British citizens, and this number is increasing dramatically every year. With more people travelling abroad every year it becomes increasingly important to be aware of the kind of hidden costs that can be incurred while travelling, exactly the kind of costs that can be avoided by having a travel insurance policy.

Travel insurance can cover anything from trip cancellation through to the cost of emergency medical care while abroad. However, every policy is different and this is where the Travel Insurance Guide comes in.

Policy Basics

Before looking for a travel insurance policy it is important to understand not only the types of coverage that should come as standard but also the limitations of travel insurance policies. Not every policy will cover for every eventuality so it is vital that you choose a policy tailored to your needs both to avoid paying too much and to ensure that you are covered for all eventualities.

Even so, there are a few eventualities that are covered by most travel insurance providers.

Below is a list of the coverage that should be offered as standard:

Cancellation or delay of your trip
Medical emergencies
Emergency treatment abroad including medical evacuation
Emergency transport home
Loss or theft of personal possessions
Legal costs

Each element of this coverage is likely to differ slightly between providers, and between individual policies that providers offer so be sure to check the fine print.

Each of these individual elements is discussed later on in the guide in much greater detail, but be sure to make sure any prospective policy covers these at the very least before proceeding with your research. Medical cover is perhaps the most important as treatment abroad can cost upwards of £100,000 (see our section on medical cover for more information).

Events that will need special cover, certain types of trip will need specialised cover, for example:

Dangerous sports
Working abroad
Backpacking

In addition to this most policies have maximum age limits and so if you an older person who is travelling this is a factor you must take into account.

Be aware also that things such as pre-existing medical conditions or valuable personal possessions will also need specialist coverage. More information on this can be found in the medical coverage and loss/theft of personal property sections of the guide.

What is never covered by travel insurance?

Unfortunately some events are never covered by travel insurance policies, under any circumstances. It is important to be aware of this before travelling. These events are:

War (although most policies will cover for terrorist attacks)
Interruption to your trip due to business or contractual commitments
Mental or nervous disorders

The category of war covers both declared and undeclared war. It is vital that you check the current advice for travellers at the foreign and commonwealth office (http://www.fco.gov.uk) for the country you are travelling to so as to ensure your personal safety throughout the trip. It is also important to note that some insurance companies will not cover you if you choose to travel to an area that is deemed "unsafe" for travel.