Why you need travel insurance

Travel is said to broaden the mind but if you are not careful it could also widen your wallet to the limit if you haven't taken out travel insurance. More and more of us are taking more than three holidays a year, yet one in seven is not covered, says the Foreign & Commonwealth Office. Last year we took a total of 42 million holidays. Not only that, we have become more adventurous visiting more exotic places off the beaten track.

Half of all teenagers going overseas now go away three times a year, according to a survey by Halifax Travel Insurance. While those over 50, with the mortgage nearly paid off and the kids flown the nest, take up to four breaks a year and often to countries such as Australia, Thailand and Malaysia, also popular with the younger generation.

Even though youngsters are travelling more frequently, a third don't bother with travel insurance and grown ups aren't much better. Potentially, this could leave millions of us forking out should disaster strike. For example, break a leg in the US and it could cost $18,000 for treatment and repatriation, says Halifax Travel Insurance.

The other consideration is our love of gadgetry. Research by Direct Line found that nearly all of us take a mobile phone on holiday, 74% take a digital camera, 17% carry their iPods or MP3 player and 10% cant bear to leave even their laptop behind. With all this expensive gear on the move with us, it is essential to make sure it's covered.

Choose the right cover and save money

If you're a member of the jet set, always venturing overseas to new lands, your best bet is to take out an annual policy. This would cover you for short breaks in the UK as well as shopping trips to France and longer trips.

Paul Dittmer, marketing manager of travel insurance specialist Columbus Direct, says that these days we are quite canny about buying travel insurance with many only taking out protection to cover us while we are away.

Be aware that insurance covering trips to the US tends to be more expensive than other places because of the high cost of medical treatment there whereas the cost of treatment in Europe is lower. So if you don't need cover for the US, why pay for it?

It is always a good idea to buy travel cover either before or when you book your trip to make sure that you get protection in case of cancellation or if you are unable to go. However, this does not mean buying a policy from travel agents.

Churchill Insurance reckons that 30% of us are paying double for our travel cover by buying from travel agents, wasting around £546 million a year. It estimated that the average overspend when buying travel insurance from a travel agent is £50.57.

But if travel insurance springs to mind only at the last minute just before you jet off, don't forget you can buy it immediately online...

29 June 2005 © Moneyextra.com

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