Are you travelling away from home this summer? Make sure you avoid these holiday insurance horrors!
I’m usually pretty careful when it comes to booking holidays online. I make sure I’ve ticked - and un-ticked - all those tiny boxes that are really difficult to find. I meticulously note down all booking reference numbers, times and dates. I even print off two copies of everything.
However, I used to be sadly remiss when it came to travel insurance. I’d leave booking it until the last minute, then grab the cheapest cover available and think no more of it.
Of course, that sort of approach is foolhardy, and could have landed me in serious hot water. When you’re organising your cover, it really is crucial that you do your research and read all the terms and conditions of the policy you choose (groan!).
Most of us have a quick check to make sure we’re covered for ‘the usual suspects’ - lost luggage, theft of possessions and so on.
And in Pick The Right Travel Insurance Policy, my Foolish friend Szu Ping Chan outlined the restrictions surrounding age and pre-existing medical conditions.
But unfortunately, there are also other unexpected restrictions to be aware of. Watch out for the following nasties!
Extreme sports
Extreme sports like bungee-jumping, white water rafting and snowboarding have been popular for years now - but it seems many people still don’t take them into account when choosing travel insurance.
According to a recent study by esure, one in six Britons would take part in an adventurous sport, knowing they wouldn’t be covered if they got injured. Huh???
And even more worryingly, 10% of Britons believe that all travel insurance policies cover adventurous activities as standard. In fact, most travel policies have a long list of exclusions covering adventure sports and other ‘extreme’ activities.
Even if your chosen policy states that it does provide this sort of cover, check the small print very carefully and watch out for restrictions and provisos. These can include:
• Activities only being covered if they’re professionally supervised and organised;
• Activities only being covered if specific safety equipment is worn;
• Hikers only being covered when they are below a certain altitude;
• Scuba divers only being covered down to a certain depth.
The list goes on... and on. For example, when I went snowboarding recently, I discovered that my winter sports policy would only cover me if the board was leashed to my ankle at all times.
So - in a nutshell, double check anything you’re unsure about. If you can't find an activity in your policy document, or you have any questions about restrictions or exclusions, contact your insurer immediately.
Have a look at The Passport To Extreme Fun - a guide produced by The Foreign & Commonwealth Office - to find out more.
Drunkenness
Most of us like a drink while we’re on holiday - but you need to be aware that if you have an accident when drunk, you may find yourself with bigger problems than you bargained for.
This is because the majority of insurance policies will not cover you if you are under the influence of alcohol. Unfortunately, this is pretty vague - because ‘under the influence’ means different things to different people.
Of course, some cases are fairly clear-cut. If you get totally trashed, and then act irresponsibly, you can’t really expect your insurance to step in when your basic common sense did not.
However, what about if you’ve had a single glass of wine, and then you trip over and hit your head?
There is currently a push to get insurance companies to set definite alcohol levels, above which cover becomes invalid. That way, at least you’d be able to make an informed decision about whether to go with them or not.
Last minute means less cover
I used to buy travel insurance a couple of days before I went on holiday. But this sort of last minute dash is dangerous, because it means you miss out on valuable cancellation cover.
According to MORE TH>N, Britons wasted over £6 billion in the summer of 2006, because they had to cancel holiday plans and they hadn’t already bought the travel insurance that would have covered this eventuality.
In 2006, MORE TH>N claims for cancelled holidays averaged £856 each. So it’s well worth buying cover at the same time that you book your holiday!
World trouble spots
If you’re the daredevil sort and you’re travelling to one of the world’s more troubled regions, make sure you’re aware of exactly how this affects your insurance.
If you travel to a country against Foreign Office advice, your insurance will almost certainly be invalid.
However, it’s a fine line to tread. If you cancel your trip because you’re worried about a situation overseas - but you haven’t been formally warned not to go - your insurer is unlikely to repay your costs.
The Foreign & Commonwealth Office’s travel advice web pages will allow you to check the status of the country you’re planning to visit.
Forewarned is forearmed. It’s boring, but choosing the right policy - and then reading it right through - could help you avoid huge bills and holiday heartbreak.
Have a good trip!
More:Travel Insurance Is Getting Cheaper | We’re All Going On A Winter Holiday