Whilst there is no legal obligation to take out travel insurance before you go abroad, protecting yourself against cancellation, illness, injury, losing your passport or money is a great idea, and may not cost as much as you think. Cover for a 7 night trip to Europe can cost as little as £10, with a worldwide annual multi-trip policy starting from around £70.
Travel insurance is designed to protect you from a range of adverse events that could happen while you are on holiday. These typically include:
- Compensation if your trip is cancelled or curtailed due to circumstances beyond your control.
- Medical emergency and/or repatriation expenses if you are ill or injured.
- Compensation if you suffer permanent disability or death whilst on holiday.
- Loss or damage to your baggage.
- Loss or theft of money.
- Expenses incurred replacing a lost passport.
- Expenses incurred due to a delayed departure.
- Legal expenses and personal liability cover in the case of an accident where you cause injury or damage to a third party or their property.
These areas of cover are subject to specified excesses and limits. As with all insurance, you should read your policy document carefully to check how much you are covered for and what (if any) excess you would need to pay in the event of a claim.
Exclusions
Policies will normally contain a list of exclusions. These will include items such as; claims arising from ongoing medical conditions that you suffer from before you take out the insurance, and claims arising from your participation in hazardous activities or adventure activities.
If you are planning to participate in any potentially hazardous activities, or have any pre-existing medical conditions, you must inform your insurer before you travel. Failure to do so may invalidate any potential claim you might make.
Most policies will also not cover you for the following:
- Drink-related incidents.
- Drug related incidents.
- Failure to take 'reasonable care' of your possessions.
