Millions of Brits are dusting their bags and getting ready for a well-deserved break as the Easter holiday approaches.
According to the national tourism agency Visit Britain, up to 7.5 million Britons take an Easter trip, or more than 10 percent of the population.
But many will take these trips without travel insurance, especially as the cost of living crisis has led many Britons to cut back on their spending.
In fact, the Association of British Travel Agents previously found that 38 per cent of UK holidaymakers do not have travel cover.
Traveling without insurance can be a false savings if something goes wrong as it could mean bills of hundreds or thousands of pounds.
Covered: Travel insurance can save consumers thousands of dollars if they need to make a claim while on vacation
Travel insurance can cover many things depending on the type of policy, but the main areas are medical expenses, lost and stolen property, and cancellation coverage.
Here’s how to get the right travel insurance policy for you and stay protected without breaking the bank.
How to get the best travel insurance
Get the right policy
Make sure you buy the right travel insurance for you as every policy is slightly different.
If you think you have more than one trip per year, consider an annual policy rather than a single trip policy as this may be cheaper.
Likewise, if you’re traveling within Europe, make that clear when purchasing insurance – as global policies tend to be more expensive.
Getting the right policy isn’t just about the price, it’s also about making sure you’re covered for what you really need.
All policies on the market today cover at least £2 million in medical costs, so you should have enough for medical emergencies abroad, according to financial rating agency Defaqto.
However, if you plan on doing winter or extreme sports, check if your policy covers it as you may have to pay extra.
Should the airline you’re traveling with go out of business, 40 per cent of annual multi-trip policies on the market offer no cover, and a further 17 per cent offer less than £1,000. This may not be enough to buy replacement flights at short notice.
One per cent of travel insurance policies won’t pay if your holiday is cancelled, and of those that do, 18 per cent offer less than £1,000.
Again, this may not be enough to cover the cost of your vacation, or to take another one at a later date.
When it comes to covering your belongings while on vacation, nine out of ten best value travel insurance policies analyzed by This is Money had restrictions on paying the full cost of replacing items with new equivalents. Insurers call such cover ‘new for old’.
| Insurer | Policy name | Premium | New for old included? |
|---|---|---|---|
| Admiral | Standard | £6 | Yes – if the item is less than a year old |
| Ergo | Element | £6.04 | Yes – if the item is less than a year old |
| Cover | Standard | £6.34 | No |
| Admiral | Gold | £6.49 | Yes – if the item is less than a year old |
| Cover | Bronze | £6.90 | No |
| Start traveling | Essential single | £7.41 | Yes – if the item is less than a year old |
| Cover | Silver plus | £7.55 | No |
| Admiral | Platinum | £7.57 | No |
| Ergo | To protect | £8.25 | Yes – if the item is less than a year old |
| insure.com | Economy | £8.26 | Yes |
| Cheapest 10 travel insurance policies for a one-way trip, 9/2/2023 | |||
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As with many types of insurance, comparing prices in the marketplace can save you money.
You may be offered additional insurance by an agent or airline when you book a flight or holiday, but this may not be the best choice for you.
Low insurance costs can represent a lot, or can be a sign that a policy doesn’t provide the specific coverage you need.
If you have pre-existing medical conditions, many regular insurers on price comparison websites may not cover you at all.
But don’t lose heart, because specialized insurers should be able to do that. To find these specialists, try the Find a broker service of the British Insurance Brokers’ Association.
Late payment: Travel insurance can provide protection against the cost of delayed and canceled flights
Check whether you are already insured
You may be able to save money on travel insurance if you already have coverage elsewhere, Defaqto said.
For example, you can have worldwide personal belongings coverage within your home insurance policy, which means you don’t have to buy baggage coverage with your travel policy.
Likewise, your current bank account may come with insurance that protects your gadgets abroad. Some credit card providers also offer free or discounted travel insurance, although it may not be comprehensive.
Should you increase your deductible to lower your premium?
One area travelers often stumble upon is setting a deductible. This is the amount the customer pays before making a claim, and a higher deductible means lower premiums.
However, coverage for things like cancellation, medical expenses, baggage and money usually fall under different sections of a policy.
If you make a claim, travel insurers usually charge one deductible for each part of the policy that is claimed.
For example, if you fell and injured yourself, and when you arrived at the hospital you found your purse and wallet missing, you would file a claim for personal injury, lost luggage, and lost money. Insurers would charge one deductible for each of those three parts of the claim, which can quickly add up.
About 8 percent of travel insurance policies have no deductible, while 2 percent have one deductible regardless of the number of claims.
Defaqto travel insurance expert Anna-Marie Duthie said: ‘The cost of living crisis is affecting everyone, but if you’re planning to travel abroad, skimping on travel insurance can be false savings.
“You don’t have to buy the most expensive policy on the market, but you do need to make sure it has enough coverage for your needs.
‘It’s also worth making sure you have an up-to-date GHIC card, which provides some medical assistance abroad in most countries, which may reduce or eliminate your deductible if you should make a claim under your insurance.’
What cover do I get from Atol and Abta?
Consumer agreements Atol and Abta are intended to protect holidaymakers if they have booked a trip with a package tour company and it goes bankrupt.
Atoll stands for Air Travel Organizer’s License. Atoll protection covers people taking a package tour that involves a flight.
If a package tour company goes out of business during a trip, Atoll Protection pays for accommodation and can handle refunds for things like car hire and flights home.
Protection against Abta – which stands for the Association of British Travel Agents – covers package holidays including road travel.
Abta pays out for money lost on accommodation and travel, including transportation home if you get stuck abroad.
If you have booked flights and hotel separately and not as part of a package, you will not be covered under either plan.
ATOL and ABTA also do not cover the loss or theft of your luggage, the cost of medical treatment abroad, the cost of canceling a trip or the bill for any delays that will incur additional costs for you.
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