Have Insurance, Will Travel

It's easy to forget something as mundane as insurance in the excitement of planning a trip, but travel insurance is something no self-respecting holidaymaker should be without. If you book a package deal, the travel agent will invariably try to sell you insurance, but don't be hasty; you can usually get it cheaper by yourself.

The type of insurance the agent will attempt to sell is known as 'single trip insurance' – meaning that you are only covered for that particular holiday. This isn't so bad if you rarely go away – perhaps once every couple of years – but if you take more than two holidays a year, including weekend breaks, then you'd save more money with annual travel insurance. This will cover you for numerous trips within the year, for a one off fee. Remember though, overnight trips and winter sports holidays may not be included in this type of policy.

Beware offers such as 'Our Platinum cover will give you over £20 million worth of medical cover'. Actually incurring costs of this size is nigh on impossible, which means you'd be paying a higher premium unnecessarily. If you have a family, it may be worth taking out one policy to cover all members, but check with your insurer before travelling to make sure each member on the trip is covered. If you don't intend to venture further than Europe, a Europe-only policy can save you a bundle, and you can always extend it in the future if necessary.

Also be wary of travel insurance offered with your credit card. Often this is actually just travel accident cover, which will only pay out for accidents while on a holiday actually paid for on the card. Or, if it is full travel insurance, your card company may insist that to make a claim, the full holiday cost, including deposit, has been paid for using the card.

You've probably heard of the E111, which has now been replaced by the EHIC (European Health Insurance Card). This is not a substitute for travel insurance, but rather a safety net; it only covers basic medical costs, not baggage loss or anything else that regular travel insurance covers. It can however mean that you don't have to pay an excess on a travel insurance claim, as many insurers stipulate that the EHIC must be held by a claimant.

The best way to find cheap travel insurance is to shop around online. While holiday insurance isn't mandatory, it's always wise to take out a policy. The one time you go on holiday without travel insurance could be the one time you need it.