In this month’s edition of MoneyHelper’s monthly financial guidance column, Paul Fox, Regional Manager for the South-West at the Money and Pensions Service (MaPS), takes you through what travel insurance is, why you need it, and things to look out for.
What is travel insurance and why do I need it?
Travel insurance provides financial protection if you face issues while travelling or on holiday. It covers a range of possibilities, from lost luggage to the cost of medical care if you become ill or have an accident.
You need travel insurance because you just never know what could happen while you’re away, and you don’t want to get caught out with a big bill.
What a good policy looks like
To buy travel insurance, visit price comparison sites as this allows you to shop around for the best deal. But remember that cheapest isn’t always best – there's no point getting the cheapest policy if it doesn’t cover your needs!
A good travel insurance policy must include costs to cover:
- Medical expenses
- Getting you back home either for medical reasons or as part of a repatriation service
- Cancellation
- Delay
- Travel abandonment
- Lost, stolen, damaged, or destroyed baggage
- Personal liability cover.
When choosing a policy, watch out for:
- Varying excess amounts, depending on the type of claim
- Overseas days, meaning the maximum number of days that you’re covered while outside of the UK
- Trip duration
- Whether you need to keep your receipts.
Visit MoneyHelper for a more comprehensive guide on what a good policy might look like depending on your needs.
Travel insurance for those with pre-existing medical conditions
If you’ve got a pre-existing medical condition or disability, finding travel insurance can be difficult.
Although MoneyHelper doesn’t provide quotes, you can use our Travel Insurance Directory to find specialist providers who can. These are authorised and regulated by the Financial Conduct Authority (FCA).
If you’re still having trouble finding a policy, an insurance broker might be able to help. You can find specialist brokers on the Find an Insurer service of the British Insurance Brokers’ Association.
If travelling with a pre-existing medical condition, be honest when buying travel insurance. If you don’t report your health truthfully in your application, any claims you make when you need help may be rejected.
Medical conditions that you should make your insurance company aware of typically include:
- Conditions you're waiting for an operation on
- Conditions you're awaiting test results for
- Conditions you've seen a doctor about in the past year
- Serious conditions, such as cancer, heart trouble or respiratory problems.
Travel insurance for those over the age of 65
Travel insurance can be more expensive as you get older, but a bit of research can go a long way in finding a good price.
You could consider a multi-trip annual travel policy, depending on how much you travel, as this can work out cheaper in the long run.
If you don’t want to shop around for insurance yourself or are struggling to find a policy that suits your needs, you can ask an insurance broker to do this on your behalf.
Visit the Find an Insurer service at British Insurance Brokers’ Association.
Find out more
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