Travel Insurance

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By Sarah Modlock

Aaah, the four day working week. How very civilised. If the long weekend and great weather has got you in the mood to book your summer holiday then make sure you get the right travel insurance.

With temperatures on the up and the holiday season just round the corner, Halifax Travel Insurance is reminding holiday makers to think ahead when buying their travel insurance this year. 'Statistics show the majority of travel insurance policies are usually arranged between April and September, which is why we are bringing this issue to the attention of our customers now,' says Halifax Travel Insurance Underwriting Manager, Paul Birkhead. 'More and more of us are taking short breaks to destinations in the UK, Europe and further afield, making annual travel insurance a more attractive proposition,' he says.

According to the latest research from Mintel, single trip policies still account for more than 50% of all travel policy sales, leaving many people out of pocket or without the necessary cover if they take more than one holiday in the same year.

Alarmingly, 13% of travellers still venture abroad without taking out the necessary cover, with 16-24 years olds being the most likely to take their chances. Contrary to popular belief, the general price difference between a single trip policy and an annual trip policy can be very small. In fact, as a rule of thumb, it almost always works out cheaper to get an annual trip policy than a single trip policy if you are planning to go abroad more than once in a year.

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Cheap air travel and the decline of the traditional package holiday have contributed to the increasing popularity of short European breaks. Between 2000 and 2005, the number of short breaks rose from 4.2 million to 7.4 million trips and now constitutes 17% of the entire overseas holiday market in the UK. But many people traveling to Europe for a short break may not always see the need for insurance. If you do end up needing treatment in hospital, getting the bill could be the most painful part.

Home and away
If you have used the E111 form in the past then it's important to note that this is no longer valid. It was replaced in January 2006 by the European Health Insurance Card (EHIC) which entitles you to reduced-cost, sometimes free, medical treatment in a European Economic Area (EEA) country or Switzerland. The EEA consists of the European Union (EU) countries plus Iceland, Liechtenstein and Norway. Switzerland applies the EHIC arrangements through an agreement with the EU. For details of which countries are covered and details of how to apply, visit the Department of Health website: www.dh.gov.uk.

Remember, the EHIC might not cover all the things you'd expect to get free of charge from the NHS in the UK. You may have to make a contribution to the cost of your care. Travellers are strongly recommended to get comprehensive private travel insurance for visits to all countries, regardless of whether you are covered by your EHIC.

It's not just foreign trips that count. UK residents took an estimated 87 million holiday trips in the UK in 2005, representing 305 million nights and £15 billion in spending. If you're staying in the UK for a holiday then don't forget that many travel insurance policies will also cover you trips where you have a certain number of nights of pre-booked accommodation. This may be a minimum of two or three and varies between insurers so check your policy.

According to information analysts Defaqto, some single trip premiums are as low as £8 or £9 for a two week holiday, but the cover offered may be less than adequate. Brian Brown of Defaqto says: 'With premiums at historically low levels there is no excuse to travel abroad without insurance. However, while these lower premiums are very welcome, consumers need to be careful that the policies do not come at the price of reduced cover. If the premium looks too good to be true, it probably is. Travellers should assess the level of cover they require and then shop around for it.'

Agent agony
Every year an ocean of cash totalling more than £250 million is wasted by travellers who buy their travel insurance from a tour operator or travel agent instead of shopping around. Up to 60% of holidaymakers still opt for tour operators and travel agents insurance, despite the fact that this can be three times more expensive than policies available elsewhere. Research from online insurance specialist swiftcover shows that travel agent policies cost a small fortune. Two single trip policies of one week each will cost you a total of £199.92 with Thomas Cook, £172 with First Choice and £193.74 with Expedia. Buying an annual policy and shopping around for the best deal could save a lot of spending money.

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Single or annual policy - how they compare

	Single trip policy		Annual trip policy
	EU Single 17 days	EU Family 17 days	EU Single	EU Family
American Express	£21.38	£58.42	£58.90 (AMT Classic Europe)	£99.75 (AMT Classic Europe)
Barclays Travel	£34.16	£73.51	£94.41 (60 days)	£198.81 (60 days)
Direct Line	£29.50	£64.84	£48.26	£97.97
Halifax	£48.53	£61.31	£40.85	£61.36
M&S	£21.17	£40.84	£51.04	£88.27
Post Office	£25.00	£50.00	£50.00	£80.00

Source: Halifax General Insurance

Top travel tips

• Book your travel insurance as soon as you can after you have booked your holiday to safeguard you if the trip is cancelled or, in certain circumstances, if you are forced to cancel yourself.


• Check that the policy limits for personal possessions claims are adequate to cover the value of the items you are taking with you - limits for baggage cover can be as low as £500 with single article limits as low as £50.


• Read the policy carefully so you know what is covered and what is excluded.


• Consider taking out an annual policy that will cover you for all trips within the year so you don't need to worry about forgetting to organise insurance for your summer holiday or any last minute weekend breaks.


• If you do have anything lost or stolen whilst on holiday, make sure that you obtain a report from the police - this is a condition of many policies and claims are often not covered if a report has not been obtained, especially for valuables and cash.


• Find out whether the policy will provide 'new-for-old' cover. The majority of travel insurance policies in the UK are written on an indemnity basis which means deductions are made for wear and tear.
  

Useful links

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