Travel insurance is an insurance that intends to protect you and your money whilst you’re out of the country i.e. huge bills you may run up abroad for reasons out of your control.
When traveling abroad it is absolutely essential to buy travel insurance, but not mandatory.
Travel insurance typically covers:
- Medical expenses (if you have a pre-existing medical condition, you will need to let the insurers know and they will quote with that in mind)
- Personal liability
- Trip cancellations
- Lost luggage
- Flight delays
Travel insurance varies depending on where you’re traveling too, what type of a holiday you are having, and length. For example a skiing trip will demand a higher insurance than a beach holiday because of the risks involved.
Please note, the cheapest insurance isn’t always the one best suited. You must always look at the excess as this can make a large difference, don’t get caught out.
Excess on a travel insurance policy is the amount the policyholder pays towards any claim. i.e. you may claim for £250 but your excess is £150 so the insurance company will pay you back £100. Some policies charge an overall excess for the entire policy regardless of the claim, and some charge per section i.e. excess for loss of baggage and then a separate excess for plane disruption despite the fact these occurrences happened as a result of one another, so it’ always worth checking.
Travel insurance may just seem like another expense that you can avoid for a holiday away, but it will give you peace of mind that you won’t be landed with an unexpected tab. Just to let you know, an air ambulance from the east coast of American, for example, can cost £45,000. Do you have that sort of money lying around? Better to be safe than sorry, just buy the insurance.