Martin Lewis, the money-saving expert, has revealed the biggest mistake that Brits can make when booking a holiday: not getting travel insurance. According to Lewis, not having travel insurance could end up costing holidaymakers thousands of pounds in the long run. Travel insurance is essential to cover costs in case of flight cancellations, airline bankruptcy, or the need for medical assistance while abroad. Lewis advises getting travel insurance as soon as you book your trip to avoid any potential financial disasters.
Why is travel insurance so important?
Travel insurance is not just for incidents that occur during your holiday; it also provides coverage for unexpected events that happen before your trip. Martin Lewis explains that every year he receives heartbreaking messages from people who have been diagnosed with serious illnesses or disabilities, preventing them from going on their planned vacations. By having travel insurance in place, you can protect yourself financially and avoid disappointment. The cost of travel insurance for a single person under the age of 65 can be as low as £10 in some cases.
Don't forget your EHIC/GHIC card
For those travelling in Europe, it's crucial to check the validity of your EHIC/GHIC card. These cards, which are free for Brits, provide access to healthcare across the EU at the same prices as locals. However, it's important to note that the GHIC does not cover all medical emergencies. It only covers necessary medical treatment and not non-urgent care. Therefore, it's still essential to have travel insurance in place.
Consider packaged bank accounts
Some packaged bank accounts offer travel insurance that can be more comprehensive than standalone policies. For example, Virgin Money's Club M account, which has a monthly fee of £12.50, provides worldwide annual family travel insurance up to the age of 74. It's worth exploring the options available to you through your bank to see if they offer any travel insurance benefits.
Choosing the right travel insurance policy
When it comes to travel insurance, there are different types of policies to consider. Single trip cover is suitable for one-off trips, while annual multi-trip cover is ideal for those who travel multiple times within a year. It often works out cheaper to opt for annual cover if you have two or more holidays planned. Make sure to check the length of coverage allowed for each trip with an annual policy, as some insurers have a cap of around 31 days.
What does travel insurance cover?
Travel insurance provides coverage for various situations, including lost luggage, trip cancellation, and medical treatment abroad. Some policies may even cover unexpected events like hotel closures or flight cancellations. It's essential to read the policy details carefully to understand what is covered and what is not. Different policies have different inclusions and exclusions, so make sure you choose one that suits your specific needs.
How to find the best travel insurance
There are several options for purchasing travel insurance. You can buy it from travel agents and holiday companies when you book your trip, but you're not obligated to do so. Banks, supermarkets, and insurance companies also offer travel cover, and using a comparison website can help you find the best product for your needs. When searching for travel insurance, you'll need to provide information about all travelers, their ages, the destination, and any medical conditions. It's important to compare the level of cover and excess amounts to find the most suitable policy. While price is a factor, it's essential to ensure that the coverage provided meets your requirements.
If you have more complex needs or require additional assistance, it may be worth using an insurance broker. The British Brokers Association website can help you find a regulated insurance broker. Additionally, it's worth checking if your current bank account offers travel insurance automatically to its customers. However, it's still crucial to review the coverage provided by the bank and consider additional options if necessary.
