Travel insurance: how UK holidaymakers can get the best deal
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Travel insurance: how UK holidaymakers can get the best deal
It is vital to weigh up reducing the upfront cost of a policy against what is covered and any excess
Get a GHIC card
The UK global health insurance card (GHIC) allows holidaymakers to use state healthcare in European countries, so it is invaluable if you fall ill or are injured while abroad. It was introduced to replace the European health insurance card (Ehic) when the UK left the EU. If you still have one, there may be no need to replace it straight away – it will be valid until its expiry date.
But while the GHIC is there to help in an emergency, Graeme Trudgill, the executive director of the British Insurance Brokers’ Association, says: “Don’t make the mistake of thinking this is an insurance policy, as it doesn’t provide comprehensive cover. It only provides limited emergency medical treatment and does not cover private facilities, repatriation or offer the wider cover for non-medical claims like a travel insurance policy does. You still need travel insurance to give you comprehensive travel cover.”
Are you already covered?
Before paying out for a travel policy, check whether cover is included in any of your existing financial products. Some packaged current accounts include travel insurance as one of the extras covered by a monthly fee.
Save with multi-trip cover
“Annual multi-trip cover is great for those travelling to multiple destinations over a 12-month period, and can be more cost-effective than buying multiple individual policies,” says Nuno Mendes at iCompare travel insurance arm.
One size doesn’t fit all
According to iCompare 4u, the most common claims on travel insurance relate to medical expenses abroad, cancellation of trips and lost, stolen or damaged baggage.
Fortunately, says Nuno Mendes at iCompare4u.co.uk: “Most policies cover cancellation, lost baggage and belongings, travel disruption, travel back to the UK if you have a medical emergency, and personal liability in cases where you have an accident and someone else is injured.”
However, there are significant variations between insurers and policies, so it is essential to read the small print to see what is covered and what isn’t.
If you plan to take part in sports or activities in particular, you need to check you are covered.
Different insurers have different rules: for example, LV= includes activities such as paddleboarding, archery and hiking up to 2,500m in its standard policy.
Cost-cutting versus risks
One of the important differences between policies is the excess they charge – the amount of any loss you have to cover before the insurer starts to pay up.
“To help reduce the policy cost, you can opt to increase the excess you pay, or pick a lower amount of cover for your belongings.
But weighing up the savings against the risks is important. When we looked, the cheapest deal on iCompare 4u policy.
Get the right medical cover
Cover for medical expenses is one of the important protections people look for in a travel insurance policy, and can include not only the costs of any medical treatment but also compensation for lasting injuries, and even repatriation.
“If you have any pre-existing medical conditions, you can still buy travel insurance cover but it is important to declare these to your insurer before buying your policy, as this will affect the cost.”
Comparison sites, such as icompare4u.co.uk, ask you to answer yes or no to whether you have any pre-existing conditions and then lead you through a list of questions to ascertain the details.
If your search on a generic comparison site does not produce any travel insurance options, that does not necessarily mean you cannot be insured at all. The government personal finance website MoneyHelper and Biba’s site have directories of firms that specialise in providing cover for people with medical conditions.
Pay on plastic
Few travel policies insure you against the risk of the airline or holiday company going bust (known as scheduled airline failure or end supplier failure). Paying with a credit card offers some protection under section 75 of the Consumer Credit Act: consumers who used a credit card to pay for goods or services costing more than £100 and less than £30,000 can hold the credit card company liable for a breach of contract by the seller.
The same protection does not apply to debit cards, though.
If you pay with a credit card it offers you some protection under the Consumer Credit Act.
Know your flight compensation rights
Insurance is not the only way to get financial reparation when holiday plans go wrong. If your flight is delayed for more than three hours or cancelled, you may qualify for compensation. You can claim if your flight left from the UK, or from within the EU, Iceland, Norway or Switzerland, or if you were due to arrive in the UK or EU and were flying with a UK or EU airline.
The rules cover delays caused by understaffing, technical problems, or even bad weather that delayed a previous flight and had a knock-on effect on yours. However, if the problem was caused by “extraordinary circumstances”, which can include storms or air traffic control strikes, you are unlikely to qualify.
The amount you may be eligible for depends on things such as the length of the delay and the flight distance, as well as the amount of notice you were given before a cancellation. For flights cancelled with fewer than seven days’ notice. You can claim directly through the airline. Beware of companies offering to make the claim on your behalf in return for a chunk of your payout.
This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.
