Policy Basics

Why is travel insurance so important?

The Foreign & Commonwealth Office estimates that British citizens will take over 65 milliontrips abroad in 2007, and this number is increasing dramatically every year. With more people travelling abroad every year it becomes increasingly important to be aware of the kind of hidden costs that can be incurred while travelling, exactly the kind of costs that can be avoided by having a comprehensive travel insurance policy.

What's Covered?

Before looking for a travel insurance policy it is important to understand not only the types of coverage that should come as standard but also the limitations of travel insurance policies. Not every policy will cover for every eventuality so it is vital that you choose a policy tailored to your needs both to avoid paying too much and to ensure that you are covered for all eventualities.
Even so, there are a few eventualities that are covered by most travel insurance providers.

Below is a list of the coverage that should be offered as standard:

• Cancellation or delay of your trip
• Medical emergencies (such as emergency medical treatment and emergency transport home)
• Loss or theft of personal possessions
• Legal costs associated with injuries or accidents
• Personal liability in the event that you injure someone
• Personal accident cover if you are injured
• 24 hour emergency assistance (so you can call at any time if you are in trouble)

• Each element of this coverage is likely to differ slightly between providers, and between individual policies that providers offer so be sure to check the fine print.

What is never covered by travel insurance?

Unfortunately some events are never covered by travel insurance policies, under any circumstances. It is important to be aware of this before travelling. These events are:

• War (although many policies will cover for terrorist attacks)
• Interruption to your trip due to business or contractual commitments
• Mental or nervous disorders
• Self-inflicted injuries

The category of war covers both declared and undeclared war. It is vital that you check the current advice given by the Foreign and Commonwealth Office for the country you are travelling to so as to ensure your personal safety throughout the trip. It is also important to note that some insurance companies will not cover you if you choose to travel to an area that is deemed "unsafe" for travel. The cost of your policy is affected by the area you choose to travel to.