Top of the agenda for anyone booking a holiday are sunshine levels, temperatures, distances from beaches to hotels and restaurant prices. Travel insurance can often rate somewhere lower down the list.
But accidents happen everywhere even on holidays and people can become ill while they are abroad. As a result, travel insurance is of fundamental importance and should be considered carefully to ensure you have the right policy for the right holiday.
Travel insurance is available from four main sources: financial institutions, mainly through credit cards; travel agents; directly from insurance companies; and credit unions.
Here are some of the main points to bear in mind when choosing travel insurance.
Do I have to get travel insurance?
It is not a legal requirement to have it to be able to travel, but the vast majority of tour operators will not sell you a holiday unless you have some kind of travel insurance.
Am I covered already through either a credit card or my home contents policy?
A number of financial institutions offer travel insurance if you use their credit card when booking your holiday. The same is true for charge cards American Express and Diners Club. However, holidaymakers should be aware that the insurance offered with credit cards is not always comprehensive.
For example, if EBS customers book their holiday using an EBS Visacard they qualify for a travel insurance accident plan of up to £30,000. Or, in the case of TSB, customers can qualify for free travel accident insurance up to £15,000 per person when they book their holiday with their TSB Visa card. But travel accident insurance should not be confused with comprehensive cover, as it will only pay out if you are disabled permanently or killed while abroad. Comprehensive policies cover all the normal risks.
A home contents policy will generally cover theft or loss of personal possessions such as cameras or jewellery. However, most home contents policies do not cover people for longer than 90 days. So if you are travelling away for the whole summer you may not be covered for the duration.
What level of cover do I need?
In terms of personal accident cover, which insures you against a permanent injury (loss of a limb or an eye), anything below £10,000 is insufficient.
In terms of medical cover you should look for £1 million for Europe and possibly twice this for the rest of the world. The same level for personal liability, if someone claims against you, should be included in the policy.
Is there any excess and how does it apply?
Like almost all insurance policies travel products do not cover you for the "excess", or the first part of the claim. In terms of travel insurance the typical level of excess is £25 a person.
What about exemptions to the policy?
The best way to find out what a policy does not cover is to read the contract carefully. You will not be covered if you do not disclose all the relevant facts or if the loss you have suffered results from you not taking reasonable care.
If you intend to go white-water rafting or scuba diving most policies will not cover you and you will probably have to pay another premium.
So-called "hazardous activity" is not normally covered. This can include flying, parachuting, rock climbing, potholing and hunting. AIB's travel insurance product, for example, will not cover you if you are skiing for more than 17 days in one year.
What if I am travelling more than once during the year?
It may be worthwhile taking out what is known as a multi-trip policy. This is more expensive than a single policy, but cheaper than taking out several single policies. It can be obtained from the main travel insurers.
Policies cover you for every trip you take in a year. The premium usually comes to between £120 and £150. You should also check to see if there is an overall limit on the amount of days in the year you are covered for.
Do I have to take the insurance product offered by the tour operator?
Tour operators cannot force you to buy their insurance package or one they recommend. If you have your own insurance product there should be no objection from the tour operator. However, some tour operators charge an "administration fee" to process your policy and you can try to have this waived.
Can I get normal medical attention within the EU?
Yes. If you fill out a €111 form, available from your local health board, you will be entitled to receive healthcare in other EU states. The level of healthcare is the same as any other citizen would get and should not be seen as the same as travel insurance.
What about age?
Infants under two years of age normally get free travel insurance from most of the tour operators and insurance companies. Children between the ages of two and 16 are normally only charged half the adult rate.
However, the elderly may find it hard to get travel insurance at all. While most of the tour operators do not operate an age bar, almost all the insurers do. For example, one of the largest insurers, Royal Sun Alliance, does not quote travel insurance to anybody above the age of 75. Other insurers either stop quoting after 70 or 80. One option open to older people is to get a travel insurance package from a British insurer tending to be more prepared to quote for people over 70.
What kind of price can I expect to pay?
For an average two-week sun holiday in Europe a person could expect to pay between £21 and £28 for an adult and £12 to £14 for a child, depending on whether they go to an insurer or a tour operator. The insurance companies tend to be cheaper because they are selling the product directly, whereas tour operators are buying the product from an insurer.
For the US, insurers are offering prices of about £45 for adults, with children costing about £22. The largest tour operator, Budget Travel was last week offering adult travel insurance to the US at £49 for adults and £24.50p for children. Rates for the rest of the world are often three times the rate for Europe, according to insurers.
