I Don't Need Travel Insurance - Do I?
If you are reading this on our website then I expect you already understand the value of travel insurance; either through a good experience, or learning the hard way. However, there is still a great deal of naivety or perhaps a blasé attitude to getting insurance cover.
This isn’t a new problem by any means, the Foreign & Commonwealth Office launched their “Know Before You Go” campaign In 2001. It has just recently aired TV adverts to encourage people to take out insurance. It is the FCO who are often expected to pay for the uninsured – they don’t!
It is estimated that about 10 million UK travellers fail to get insured. The reasons given for not getting insured are varied. They include:-
• “I’m only visiting family, I will be okay”
• “I’m only travelling to Europe and after all I have an EHIC card (replaced the E111)”
• “I forgot”
• “The FCO will pay if something goes wrong”
• “I don’t need it, I’m only going on a short break”
This can be a very costly mistake. So, why do they need travel insurance?
Why Get Insurance?
A recent study suggests that many people have to change or cancel their holiday plans. Often your holiday company will charge you for this, or you may forfeit the whole holiday cost.
It is thought that in the UK as much as £6 billion per year could be saved if people took out travel insurance when they first booked their holiday, or perhaps if they had an annual policy. If they did, they would be able to recover some or all of the costs of a cancelled holiday.
It becomes much more expensive when you are already on holiday and something goes wrong. It is a fact of life that things go wrong and when you are abroad it can be very difficult, not to mention very expensive to get help.
If, for example, you were one of the many travellers to the US and you were unlucky enough to break your leg, you could end up with a hospital bill for £20,000 or more. Unfortunately, no one else will pay your bill for you.
If you are unluckier still and need to be flown home to the UK perhaps for further treatment, your airline is very unlikely to carry you without a medical escort. You may also need special equipment and extra space on the aircraft. Expect to pay at least £7,000, probably more, to get home.
All of a sudden, that £30.00 insurance policy doesn’t seem too expensive.
When Should I Get Travel Insurance?
If you travel abroad twice or more a year you may be better off getting an annual policy. This will save you the trouble of taking out a new policy each time you travel. If you travel less frequently, it is wise to take out a policy as soon as possible after booking, or even at the time you booked. If you do, you will be covered for cancellation if for any reason you can’t travel.
What Policy and What Cover?
Everyone has different needs and requirements and everyone will need different types and levels of cover. Here are some of the things you should think about when choosing your policy.
Medical Cover – Will it be sufficient. It is rare to find a policy with less than £2 million of cover and that should be plenty.
Third Party Liability – This covers you for any accidents that may be your fault and give rise to a compensation claim against you. Be sure to consider the exclusions on this part of the policy as they may be far reaching and render the cover almost useless.
Cancellation - This has been dealt with above. The extent of cover is typically £2,500 - £5,000. However, if your holiday costs exceed this, be sure to seek better cover.
Legal Expenses – This is the section that I see most often. Most policies include it, but many exclude all but the most unusual of circumstances. This section applies when you have an accident or complaint and wish to pursue a compensation claim. Typically a claim will be against your tour operator or accommodation provider. The majority of policies exclude making a claim of this type.
Some policies insist that you re-pay any legal costs from damages and this can make a serious dent in any compensation.
Even if the claim is not covered by the Legal Expenses section, do seek legal advice and we may be able to help find another way of funding it without the need for you to pay privately. Alternatively, we are sure to be able to give some practical advice.
Other Sections –If you are on holiday for a specific reason, for example skiing, it is vital that your policy covers you for that purpose. Make sure you check before you leave. The same applies to the more adventurous among us. Extreme sports are more popular than ever, but they can easily result in serious problems, so again, make sure you are covered.
The title of this article is “I Don’t Need Travel Insurance – Do I?” I am hopeful that I have been able to answer this question for you.
If you have any travel related issues, contact our Travel and Tourism Team for further information on 020 8296 6825 or travelandtourism@colemans-ctts.co.uk