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How to get the right travel insurance By Emma Lunn
There are plenty of ways to buy your travel insurance and they each have their pros and cons - for example, from the travel agent when you book your holiday, direct from an insurer, from your bank or via the internet. Sites such as insurancewide.com Buying travel insurance from your travel agent is the easiest way to buy a policy, but the chances are you will pay over the odds and won't get the best quality cover. Unlike insurers and brokers, travel agents are not bound by Financial Services Authority (FSA) regulations regarding the selling of insurance, and are therefore not obliged to point out the small print or ask in-depth questions. Tailor-made is best AA Insurance estimates that about 10% of holidaymakers set off on their travels without a policy that is right for them. The AA asks customers specific questions about their health and any pre-existing medical conditions to ensure that they get the right cover for them. "Quite apart from the millions who may have received some form of hospital treatment in the last year, or who have other conditions that should be declared, at least a tenth of the population suffer from serious but controllable complaints such as angina, asthma or diabetes," says Alison Crossley, manager of AA Travel Insurance. A customer's medical history is used to assess whether they can be accepted for cover, how much it will be, and whether certain conditions should be excluded from the policy. If a customer fails to disclose any medical conditions that lead to a claim, the insurance policy could become invalid. Check you have adequate cover In the unfortunate event of having to swap a sun lounger for a hospital bed, holidaymakers need to make sure they have enough cover for medical claims. Experts recommend a minimum of £1 million if travelling within the EU, but at least £2 million if going to the US. Richard Mason from insuresupermarket.com also recommends having personal liability cover of £1,000,000, cancellation cover of £3,000 and baggage cover of £1,500. If you are travelling within the EU, a European health insurance card (EHIC) - the replacement for the old E111 - will let you access medical treatment on the same terms as the locals. "This card should not be carried as a substitute for travel insurance," warns Joanne Field of American Express. "This EHIC card would not pay for repatriation to Britain, or for the cost of a relative to join and remain with the injured party abroad - costs that good travel insurance will pay out on." In the event of stolen property, it is important the customer paid due care and attention. Another little-known clause that can invalidate travel insurance is that insurers can refuse to pay out if the loss occurred under the influence of alcohol or illegal drugs. Terrorism and disasters Some travel insurance policies include clauses that say they will not pay up in the event of an 'act of God', such as an earthquake or tsunami, or if there is a terrorist attack, but this is beginning to change. "Up until recently, policyholders caught up in terrorist acts had cover for their medical expenses and we provided emergency assistance. But we have now excluded cover in other areas such as for personal possessions, travel delay or cancellation," explains Perry Wilson from Insure and Go. "We are altering our policies to provide further protection to policyholders directly affected by an act of terrorism when they are travelling to, or holidaying in, countries deemed safe by the Foreign & Commonwealth Office," he adds. Pretty much all policies become invalid if people travel against Foreign Office advice. Check the 'travel advice' section of the Foreign Office website fco.gov.uk. Although some policies exclude natural disasters, most insurers leapt to the aid of people affected by the tsunami in Asia on Boxing Day 2004. For example, Sainsbury's Bank provided medical cover up to £10 million and offered repatriation cover to people stranded in the affected area, whether they were ill or not. Claims tend to be looked at on a case-by-case basis. Older people If you are over 65, you may find it a struggle to get travel insurance at a competitive rate. Richard Mason says: "It can be expensive for older people and increases quite dramatically in price as you get older, particularly over the age of 60. Premiums can increase by as much as 500% for a single trip and up to six times more expensive for annual policies." According to the British Insurers Brokers' Association (BIBA), people aged 65 and over will be turned down for around 30 of the 140 annual travel insurance policies on the market and, when they hit 70, will be rejected for more than 105 policies. RIAS is a specialist insurer focused on the over-50s age group and covers travellers up to the age of 89 for single trips and 79 for annual multi-trips. Spokesperson Simon Stanney says RIAS looks at each customer on an individual basis and often quotes for, or covers, people other insurers will not. He says: "Our advice is always to check the small print, particularly regarding existing medical conditions, and if there is any doubt about a pre-existing medical condition, get a certificate of fitness to travel from your GP, for added peace of mind."
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