Are you planning a summer getaway? We assume you’ve got your flights, hotel and transfers all sorted out, but have you got your travel insurance?
While it might not be the most exciting part of planning your trip, travel insurance is a must have. Hopefully, you’ll never need to use it, but if something goes wrong, you’ll be glad to have it.
What does travel insurance cover?
Think of travel insurance as a safety net to help you mitigate any unexpected circumstances. We don’t just mean a delayed flight or a trip to the doctor with a sprained ankle. Travel insurance can help in many circumstances. For example:
-
Cancelled flights
-
Unexpected illness
-
Lost or damaged baggage
-
Theft of your property
-
Cancellation of the trip if you fall ill, need to do jury duty, have been made redundant etc.
-
Personal liability (if you accidentally damage someone else’s property)
-
Cutting a trip short due to an emergency
Make sure to thoroughly read your policy documents to understand exactly what your insurance will cover.
You may find that some travel insurance policies only cover those up to a specific age. Once you are over 65, you may find that insurance policies get more expensive. This is due to the increased likelihood that you will need to make a claim. Although senior coverage may be more expensive, it typically offers better coverage in areas that matter such as medical and emergency assistance.
What kinds of travel insurance are there?
The two most common forms of insurance are single trip and annual cover. They are pretty self-explanatory. Single trip travel insurance is a one-time payment to cover one specific trip. Annual cover will cover all the trips you take within a specified period.
Once you know the length of insurance you require, you’ll need to think of who has to be covered by it. Family travel insurance will typically cover parents and children who live with them. Couples' insurance will cover two named policyholders, and individual insurance will cover just one person.
Once you have worked out the type of policy you need, it is important to arrange insurance as soon as you can. Your policy will not only cover you while you are away on your trip, it can also cover you for situations that may occur before you leave. For example, as mentioned above, if you have to cancel the trip due to unexpected circumstances such as redundancy.
Where can you buy travel insurance?
Travel insurance is widely available and there are many convenient options. For example:
-
Travel agents often offer travel insurance when you book your holiday
-
High street banks may include travel insurance with certain current accounts. Take a look at your terms and conditions to see what’s covered
-
The Post Office offers a variety of policies
-
Comparison websites such as Compare the Market and Money Supermarket can help you to find the best deals by comparing what’s on offer in detail.
If you want to consider some ethical travel insurance options, Good with Money have put together a guide to their top 4 providers. Click here.
It is important to remember that the cheapest deal is not always the best value. Make sure you consider all the important factors of your trip such as where you are going, who you are travelling with and what activities you intend to do. A slightly higher premium could give you more comprehensive protection where it really counts.
Whether you’re heading off to the Costa del Sol or exploring the cobbled streets of York, make sure travel insurance is ticked off your holiday to do list. You’ve worked hard for your holiday, make sure it’s protected.
If you are heading abroad, take a look at our post from last year all about your travel money options. Click here.
It is important to take professional advice before making any decision relating to your personal finances. Information within this article does not provide individual tailored investment advice and is for guidance only. We cannot assume legal liability for any errors or omissions it might contain. Ethical Futures llp is authorised and regulated by the Financial Conduct Authority.