12 top travel insurance tips

If you're about to book a holiday, make sure you're properly insured by following these 12 easy tips.

All this sunshine is making me wish I were going on holiday! But if you're in the process of booking one, take heed of the following research - or you may live to regret it...

Airlines automatically adding travel insurance to flight bookings

While investigating how to book a flight online with a number of well known airlines, Which? Holiday found that three (Easyjet, Jet2 and Monarch) are flouting EU regulations by automatically adding extras - in this case travel insurance, during the booking process.

And Air Berlin adds to the culprits by automatically adding cancellation insurance to flights returning the same day.

Inferior cover

What's more, travel insurance cover from heavyweights British Airways, Ryanair and lesser known Wizz did not meet the Which? Best buy criteria regarding cancellation and curtailment, or regarding lost or stolen baggage.

Which policy should I choose?

Of course, for those of you who can't be bothered to shop around, having travel insurance automatically added to your flight could seem like a good thing. But what about the rest of us, who wish to take out a policy but want good cover for a reasonable price. What should we do?

Main points to watch out for

Fortunately, travel insurance isn't all that complicated. There are just a few things you need to check before you hand over any money.

1) Annual vs single trip

If this is the only holiday you'll be taking for a year, a single trip policy will be the cheapest way to go. If, however you'll probably go away again before the end of the year and you're skiing in January, take out annual cover - it'll be far cheaper.

2) Do you cover lion taming?

While your Aunt Mildred may be happy with a little gentle sight-seeing while away, if you're the sort that needs to be trying to break their neck, be it bungee jumping, abseiling, paragliding, or any winter sports, make sure you stipulate this when applying for cover.

3) Has the provider got accreditation?

If your holiday involves a flight, ensure you pick a travel company with an ATOL licence - should it go out of business the ATOL scheme will ensure you don't lose any money paid, or get left stranded abroad. Or choose one that's a member of an association that can offer financial protection for your travel arrangements, such as ABTA or AITO.

4) EHIC card

Illnesses and accidents are always ready to strike, and being ill far from home can be a truly miserable experience (been there, done that!).

If you're travelling within the EU or Switzerland make sure you apply for a European Health Insurance card (EHIC). It costs nothing and entitles UK residents to free, or reduced cost medical treatment within these countries. However, it won't cover everything and is not, I repeat, not a substitute for travel insurance.

Incidentally, travellers to the Channel islands should note that there is no longer a reciprocal healthcare agreement for UK residents - and as EHIC cards aren't valid there either you will need comprehensive travel insurance.

5) Medical cover

You'll need plenty of cover should you have an accident or become ill abroad, with £2m to £10m being the usual range offered. It should also include 24-hour emergency cover and assistance.

6) Pre-existing conditions

It is also wise to tell your insurer about any pre-existing medical conditions that may affect you, or anyone else on whom your holiday plans depend. Some will charge an extra premium to cover the condition, or you could decide to exclude it from your cover altogether.

But remember, honesty is always the best policy - omit anything important and your insurance may not be valid.

7) How much for a helicopter ride home?

Getting a sick or injured person home doesn't come cheap. And the Foreign office is not exaggerating when it states that an air ambulance from the USA's East Coast could cost £35k to £45k.

If you don't fancy potentially selling your car/house/internal organs to foot the bill, make sure you've taken out a policy that covers repatriation costs.

8) Cancellation and curtailment

Should the worst happen and your holiday/flight be cancelled, or if you should need to cut short your trip, cancellation and curtailment cover should ensure you're not left out of pocket.

9) Personal Liability Insurance

If you accidentally cause an injury to someone else, or damage their property the aggrieved party may try and sue. Personal liability insurance covers this and so is well worth having.

10) Where's my suitcase?

Everyone's worst nightmare - you get to your destination in Spain, only to discover your luggage is living it up in Amsterdam.

But be warned: Airlines only have to pay out according to the weight of lost items, so any compensation would be unlikely to cover the value of your things. For this reason ensure you have lost and stolen possessions cover in your policy. You'll usually need to report any losses to the airline/police (and produce proof) to be able to claim.

But check the small print carefully; single limit item cover can vary from £200 to thousands so you'll need to be sure this is adequate for your valuables. Alternatively, check your household policy as it may provide cover for valuables while you're away.

11) You get what you pay for

You may kid yourself that the "Value" pack of orange juice in Tesco tastes as good as the freshly squeezed stuff, but you know in your heart it doesn't.

The same goes for travel insurance. If one quote is far cheaper than the others it's probably because it's offering reduced medical cover or omits to cover lost luggage, etc.

That's not to say it's a bad thing - if you only travel with one small bag of hand luggage and no valuables you may be willing to take the risk. Read the small print and decide if the saving is worth it.

12) Use a credit card

Finally, if your policy will cost over £100 and you have a credit card, use it. This way should your insurer go bust you'll be covered by Section 75 of the Consumer Credit Act.

Make sure you're adequately covered and you'll enjoy your trip even more.

Happy travelling!

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