IF YOU’RE LUCKY enough to be going abroad on holidays this year, chances are you may be thinking twice about increasing your spend by taking out travel insurance. But do you really need it, and if so, how much should it cost? Here are eight steps to getting the best cover for you – at the best price for your wallet.
DO YOU NEED IT?
While Murphy’s law suggests that whatever incident might befall you will be the one that is excluded from your travel insurance policy, it might be worth perusing the most common types of claims to determine the likelihood that you might need extra cover.
According to the VHI for example, last year the most common claims were: cancellation and curtailment (accounting for almost 80 per cent of all claims made); medical expenses; loss of baggage; winter sports; lost money.
For a further flavour of what is typically covered, we asked the VHI to give an insight into what kind of claims have been made over the past year. If your holiday is going to cost a lot, it might pay off to have some level of protection.
One family of five for example, had to cancel a trip to Tanzania due to a family bereavement – but were facing cancellation charges of more than €25,000. However, the family ended up paying only the excess on their policy of €85 as the VHI covered the rest.
REMEMBER YOUR PRIVATE HEALTH COVER
If you have private health insurance, you should be able to save between 15-20 per cent on the cost of a travel policy, given that most insurers offer a discount on this basis. Take the example of annual worldwide cover with 123.ie. If you have private cover, you can get a policy starting at €37.
But if you're one of the 65,000 people who cancelled their private health insurance policies last year, your travel insurance policies are now likely to be more expensive. With 123.iefor example, the aforementioned policy will now cost you from €44.
It may also exclude you from certain providers. The VHI’s multi-trip product, for example, is only available to customers who have cover for at least €65,000 for overseas medical expenses under their private health insurance policies.
So, if you cancelled your health insurance this year but still have an outstanding travel policy, check your entitlements with VHI before you travel – otherwise you may find that should any medical expenses arise while you’re overseas, the VHI may not cover them.
DO YOUR RESEARCH IF YOU HAVE A MEDICAL CONDITION
If you’re looking for travel insurance and have a pre-existing medical condition, you may find it more difficult to get a company which provides cover.
According to Age Action Ireland, for example, certain insurers, such as AA Ireland and Trailfinders, may not offer cover in these cases, while AIB and Accident General exclude “certain” conditions. Others, such as Go Hop, require you to disclose the specific medical conditions, while others still, such as ACE, offer insurance provided that you have your own private health cover.
COST RISES WITH AGE
Many insurance providers tend to increase the cost for those aged over 60. At 123.iefor example, someone aged between 56 and 60 can expect to pay more than €80 for a typical annual multi-trip policy, while a person in their 80s will pay almost €200 for basic cover.
Similarly, at AA Ireland, an annual worldwide policy can be purchased for just €52.79. For someone aged 75, however, the price soars to €115.93.
According to Age Action Ireland, age limitations apply at a number of insurance providers. At Bank of Ireland, for example, it may be difficult to get cover for those aged over 74, while at justcover.ie, the limit is 76, and at AIB it is 75. On the other hand, no age limit applies at AA Ireland, Eagle Star and Royal Sun Alliance.
CHECK YOUR CREDIT
Before you pay out for health insurance, you should also check out the terms and conditions of your credit card. If you are a customer of Bank of Ireland’s Platinum credit card, for example, and you pay for at least 50 per cent of the cost of your holiday with this card, you will be entitled to comprehensive family travel insurance cover, which is underwritten by Chartis.
It offers cover for medical expenses of up to €6.4 million, personal liability of €640,000 and cancellation cover of €2,500.
Beware of a similar offer from AIB, however. Holders of its Platinum card can get travel cover for themselves and children in full-time education up to the age of 23 – but it will cost an additional €125 a year.
And, while BOI’s offer may appear attractive, it is not worth getting the card just for the cover, as it attracts an annual fee of €76.18. Moreover, an excess of €75 on each claim also applies to each person.
BEWARE THE HARD SELL
It not only appears to make sense, but it can also be very difficult to avoid the might of airline carriers when it comes to selling you travel insurance. Be warned, however, that purchasing health insurance at the same time as your flights might leave you out of pocket.
Annual multi-trip cover at Ryanair for example, starts at €55.45. Over at Aer Lingus, a quote for an adult looking for cover in the US for 17 days came out at €94.75, or double that if winter sports cover is included.
You can also expect something similar from travel agents, so while it might be more convenient to take out at the same time as you book your holiday, it may not always be the best value option.
GET WHAT YOU CAN FOR FREE
If you decide not to opt for travel insurance – or even if you do – it is worthwhile making sure you are aware of any free entitlements you may have.
When travelling in Europe for example, it is always recommended to avail of a European Health Insurance Card (EHIC). This card, which is free, allows you to access public healthcare services in other EU or EEA countries, if you should become ill or injured while on a temporary stay there.
However, it doesn't include extras such as the cost of repatriation, so additional cover may be needed. To update or apply for a card, log on to ehic.ieor ask for an application form at your local health office, community care office or health centre.
Similarly, if you have private health insurance, you will be covered for up to a certain amount for overseas medical expenses, so check before you travel.
YOU GET WHAT YOU PAY FOR
Given the significant price discrepancy that exists out there, while it is wise to shop around for the lowest price, the cheapest policy isn’t always the best.
If you want to ensure that your family is protected as much as possible, then taking some time to compare and contrast various offers might be the wisest move, particularly if you have special needs.
For example, medical cover of at least €1.5 million is recommended for outside Europe, and more for the US.
Be sure also to check the excess before you sign up to any policy. At the VHI for example, an excess of €85 applies to each claim, 123.ieimposes an excess of up to €360 for personal liability, while Sunway Travel's travel policy applies an excess to a variety of claims, such as €85 on baggage and lost money and €100 on medical expenses.
Given that the average claim last year, according to the VHI, was €451 – up by 13 per cent on 2009 – the level of the excess imposed on your policy is important, as it might wipe out the benefits of having it.
Be warned, however, that purchasing health insurance at the same time as your flights might leave you out of pocket
