TRAVEL INSURANCE

It’s one of those things most travellers hate having to pay for on top of the price of their ticket. After all, it always seems the money you spend on insurance could be better spent on something far more exciting.

But it’s not only worth it, it’s essential. It’s peace of mind in case the worst happens. If you don’t have it and your luggage or wallet “disappears”, or if you come down with some unpronounceable disease and need urgent medical treatment, then you’ll be stuck between a rock and a hard, foreign place.

Buy insurance in advance

It’s a good idea to take out insurance before you buy your tickets, because if you need to cancel your trip, the insurance policy – providing it’s a good one – will cover the cancellation fees.

Check to see what the policy you are considering covers. Insurance policies range in price depending on your destination and what you will be doing while you’re there – for instance because the cost of medical services is high in the US, there may be special premiums or rates involved if you’re stopping off there. By comparison, the UK has medical cover through the NHS, which is free.

The extent of the medical cover in the policy is one of the most important things to check out before you sign. Should the worst happen and you have an accident or get sick, you will need to get the right treatment straight away.

We like getting out and living life on the edge so if you’re thinking about trying some potentially dangerous sports or activities on your holiday, where you could suffer an injury, policy costs may also increase. Some may not cover that particular activity at all. Make sure your chosen activities are specified in your policy.

If you know what sports you may be doing, check your policy will cover any accidents. If you are unsure about anything, ask your insurance agent to explain.

Choosing an insurer

There are various people you can contact to take out travel insurance. Often travel agencies have their own services for you to use – Student Travel and Flight Centre have such schemes but they do tend to be more expensive than specialist providers. Downunder Insurance (www.duinsure.com), pioneered adventure travel insurance and has an online instant quotation service.

Some credit card companies offer travel insurance, which may even be free if you are a gold card holder. Both Visa and Mastercard have such schemes, where you can receive cover for up to 90 days as long as you purchase at least 50 per cent of your pre-paid (air tickets, accommodation) expenses using your card. Some travellers have reported problems getting these card companies to pay out for claims and their coverage is usually quite general so it’s worth checking exactly what you are covered for and what you are not.

For those intending a longer stay it may pay to look elsewhere, although it is also possible to take cover for a shorter length of time and then buy a new policy once you arrive in the UK.

There are literally hundreds of travel insurance companies in Britain, and most will insure journeys around Europe for as little as £10 per week – but check they don’t just cover UK citizens.

How much to pay

You should be able to buy a worldwide policy for backpackers for a year from about $600 depending on what part of the world you are travelling in, but you will pay more if you intend undertaking adventure tourism activities.

Try to keep receipts of travel expenses and records of your valuables and their worth in case you need to claim. Police reports are always required if something has been stolen.  And keep details of your policy somewhere save. Just in case.