It’s not hard to find websites offering cheap travel insurance which claim to be a really great deal. In fact, you can find single trip holiday insurance for as low as a few pounds per week to cover the most popular trips and destinations but is it such a good idea?
At a time when cost is often the yardstick by which we measure value, premiums tend to drive most insurance transactions online, but we may be making a mistake by choosing the cheapest option. When it comes to travel insurance, choosing a policy purely on price alone could mean that you get less than you bargained for if you have to make a claim. There can be several excesses to pay, exclusions for many different injuries, and there may also be a very strict interpretation of pre-existing conditions too, which may rule out any claims you try to make. No wonder there are so many official complaints made about travel insurance.
Why Cheap Insurance is Not Always the Best Choice
There are a variety of reasons why the cheapest travel insurance policies are not always the best buy…
Reason #1 There Can Be Multiple Excesses to Pay
Usually you will find that you have a specified excess to pay before the insurance policy kicks in to cover any loss or expenses. However, if you lose your purse and suitcase in one go and expect it to be counted as just one loss, you may be in for a surprise. Some companies will count this as two items, so youll have to pay the excess for both of them.
Reason #2 Low Limits for Single Items
There are many cheap travel insurance companies that have a very low limit on the amount that they will pay you for any single item that is lost. If you have a policy that only offers 150 pounds for a single item and you lose a computer worth a thousand pounds, youll only get the 150 pounds. Of course youll have to pay the excess too, which means youll get far less than you expected.
Reason #3 Restrictive Cancellation Terms
If you have a travel insurance policy that will pay out should your holiday be cancelled due to unforeseen circumstances, you need to know how they interpret these circumstances. In some cases, if you have to cancel your trip due to family illnesses, they company may reject your claim, saying you should have known about the illness when you planned the trip.
Reason #4 Broad Policy Exclusions
It’s always important to be fully aware of your policies terms and conditions, paying particulat attention to exclusions. In some cases you may find that the policy excludes covering items that are worth more than a specific amount. Also, they may not pay for injuries that occur after you have consumed alcohol. They may not pay for a replacement pair of eyeglasses either, reasoning that you should have brought another pair with you.
So How Much Should You Expect to Pay?
So, what is a realistic amount to pay for travel insurance cover? Well, you should probably expect to pay between 18-25 pounds each week for if you are traveling in Europe and a bit more if you are traveling to the United States. If you intend to take more than one trip in the next twelve months you could save money with annual travel cover, also known as a multi-trip policy, rather than purchase cover for a single trip or holiday.
