Travel Money & Essentials

Here's the lowdown on money and essentials for your travel trips.

Although fun, there's a serious side to travel, too. Follow our tips to make sure you're prepared for your break:

1. Money

Don't pay too much for your foreign currency. Top places to exchange that sterling are the Post Office and Marks & Spencer.

If you have a maestro card (look for the symbol on your debit card) you can order your currency from Travelex, pick it up at the airport/Eurotunnel/ferry terminal and be guaranteed the best foreign exchange prices in the UK. Changing up £100 today would give you nearly US$190, but beware; using any other card may incur a cash advance fee.

The Foreign Office advises that we shouldn't travel with just one form of money: take a mixture of cash and traveller's cheques as the latter can be replaced if lost or stolen. Check the travel books for the country you are visiting before you go as you may find that US dollar cheques will be easier to exchange than sterling.

2. Cards

And speaking of cards, if you're fond of using those flexible friends when abroad, watch out. Most credit and debit cards typically incur a 2.75% loading fee, when used outside the UK. Withdraw cash from an ATM and you're stung twice -- once with the loading fee, and once again with a cash withdrawal fee (typically 2%).

So £100 taken out from the hole in the wall actually costs £104.75 (with interest charged too, if a credit card was used). And although that may not sound like a lot, make a few withdrawals/payments over a two week break and it can add up to a lot of commission to line your bank manager's pockets!

Commission free Credit Cards

Don't worry, though, there are ways to bypass these charges. Choose a Nationwide BS credit card, or the Post Office Platinum MasterCard and you can use them abroad, for free. But remember, never withdraw cash with a credit card (that goes for the UK too!) unless you're fond of paying charges and interest.

Additionally, the Morgan Stanley ic24 card also offers free usage abroad, but, withy an annual fee of £275 you may prefer the free Nationwide/Post Office options!

Debit Cards

And those people with a Nationwide BS current account are in the fortunate position of being able to withdraw cash from any ATM, worldwide, for free.

3. European Health Insurance Card (EHIC)

If your trip is to Europe, you must make sure you have a European Health Insurance card (EHIC). It entitles you to free, or reduced cost State medical treatment in any of the EU countries, plus Norway, Liechtenstein and Iceland (Switzerland also applies the EHIC arrangement through an agreement with the EU).

The quickest way to apply is online, although you can also do so over the phone (tel. 0845 606 2030) or by filling in an application form at the Post Office -- the card should take between 7 and 10 days to arrive. You can also apply for your spouse and any children under 16 at the same time; just make sure you have all dates of birth and any applicable National Insurance numbers.

Remember, carrying the EHIC card is a requirement for UK citizens in many EU countries. However, it only entitles you to basic medical care; it won't pay for repatriation costs or air ambulances, for example, should you have an accident skiing. You should therefore ensure you have comprehensive travel insurance, so make sure you take out adequate cover before you travel.

4. Insurance

As mentioned, travel insurance is vital. And this doesn't mean having to take out the cover your travel agent tries to sell you; cheaper and better cover can often be obtained online, or from insurance brokers (indeed, travel insurance sold by travel agents has recently been under investigation by the Treasury).

Before you rush out and sign up for a policy, have a think about your travel plans for the year. If you'll be taking a couple of holidays, plus maybe a weekend away, an annual travel insurance policy will probably work out to be most cost effective. Annual policies can cover European, or worldwide travel for individuals, couples or families, with kids under 17 (or older) often included free.

And note: if you're planning a European holiday with the vague possibility of travelling further afield in a few months, it's often worth taking out annual European cover, only, to begin with -- you can always add the extra cover later and it usually doesn't cost any more than if you'd bought the worldwide policy to begin with.-

Additionally, ensure you have the right level of cover to suit your needs. For example, if your holiday will involve winter sports, make sure this is specified as it's usually an optional extra. However, if it doesn't, make sure you're not paying for that extra cover!

Providers that are consistently highly rated by Defaqto include Debenhams, Marks & Spencer and Sainsbury's bank. For example, a family of four (two adults, two children under 17) can currently get two weeks, European cover from around £36, from Debenhams, with winter sports cover bumping the price to £65. If they were to choose an annual, European policy instead, prices start at around £78, with winter sports increasing this to £104.

Always declare any pre-existing medical conditions, too, or your policy may be rendered invalid, should you try to claim. And make sure you read the small print to check that you and your possessions are adequately covered -- especially if you'll be travelling with expensive winter sports equipment. Remember -- cheaper is not always better.

And as a final note: if you have a packaged current account i.e. you pay a monthly fee, check your details carefully. Many of these accounts include, amongst their benefits, comprehensive travel insurance, either for you, or your partner/children -- so don't pay twice!

5. Health

Make sure you keep your vaccinations up to date, and you can find out if the country you are visiting requires any additional immunisations here. Remember, not all vaccinations are free -- you can find out which ones you'll need to pay for at the NHS Direct site.

6. Miscellaneous

And finally, make sure you prepare for your trip in advance. Check the Foreign Office website for up to date travel advice, and to find out if you will need a visa for the country you are visiting. You can even sign up for its email alerts to keep you informed of travel restrictions. And it has a special site for gap year travellers. Give family/friends at home a copy of your travel itinerary, passport, credit cards and traveller's cheque numbers, just in case they are lost/stolen.