Annual Travel Insurance – is it Enough?

In theory an annual travel insurance policy sounds great, you pay a one-off fee and all your journeys are covered for the next 12 months. For most standard journeys this is fine but if you delve deeper into the conditions of your policy you may find the level of cover is not as comprehensive as first appears.

Today people travel for a wide range of reasons and the travel insurance policies available to you have evolved to meet the more varied demand for appropriate cover. The nature of your travel and the activities you have planned upon your arrival now have a huge impact in determining which travel insurance policy is right for you. In this guide we will look at which policies are suitable for certain types of travel.

If you are planning to take a winter holiday you may want to consider taking out winter sports insurance. This form of insurance provides cover for activities such as skiing and snowboarding, covering both injuries and the loss or damage of sports equipment. Fewer than 60 countries have a reciprocal healthcare agreement with the UK and without adequate cover a broken leg in Switzerland could cost you around £25,000.

If your holiday is likely to involve you taking part in adventure activities such as bungee jumping or white-water rafting it would be advisable to take out a form of adventure holiday insurance. Many of these adventure activities may be exempt from a traditional travel insurance policy so failing to take out appropriate cover could mean you facing a hefty bill should something go wrong. When purchasing adventure holiday insurance always ensure your planned activities are covered by the policy.

A backpacking holiday is another activity that can require a specialised policy. Backpackers insurance is a form of long term insurance that can last up to 18 months. Policies also cover you when working abroad which may be necessary when travelling for a long period of time, particularly for students. When taking out backpackers insurance it is essential to check that all the countries you plan to visit are covered by the policy, particularly if you’re travelling to countries where your EHIC card is not valid. Also remember that some third world or war-torn countries may not be covered.

If your work requires you to travel abroad you should consider taking out business insurance. This type of policy can cover business equipment such as laptops and PDAs and business documents. Some policies also cover the travel expenses if you are taken ill and another member of staff has to fly out and take your place. Business insurance also covers you for personal injury and liability, something that insurance provided by your employer may not.

Many standard insurance policies have an upper age limit (usually this is 65). Once you breach this limit travel insurance can become more expensive as you are considered a higher risk. In this situation you should seek insurance from providers who specialise in cheap travel insurance for the over 65s. Regardless of your age if you have any pre-existing medical conditions it is vital to let your insurance company know before buying the insurance. Such a condition is likely to increase the cost of your policy but it’s a small price to pay; if you fail to declare any medical issues your insurance policy is unlikely to cover you and this could result in a large bill for any medical treatment.

As you can see the type of travel insurance you need varies wildly depending on the nature of your journey. In addition to choosing the correct type of policy also remember to check your travel insurance covers all the basics including medical expenses, loss of luggage, money and passports, repatriation costs, cancelled or delayed flights and damage to third parties.

When looking to save money on your travel insurance remember that choosing the correct policy is just as important and a few extra pounds could save you thousands.