press release

AS AROUND ten million Brits take off abroad1 to escape downpours and floods in the wash out summer, Moneynet.co.uk, the financial data comparison site, warns holidaymakers to check and double check the small print on their insurance policies.

While many assume that taking out cover is to protect against damage or loss of personal possessions, the reality is that the majority of claims made are for medical emergencies2.

“It’s the most comprehensive policies that people should be looking for – cheap cover may be cheerful but if you injure a third party while not properly insured on your break the ramifications could be horrendous,” says Richard Brown, Moneynet.co.uk chief executive.

Brown recommends holidaymakers shop for policies that offer at least £5 million cover for medical expenses, £50,000 legal expenses and £2 million of personal liability should they injure a third party.

“They may seem like big numbers, but a serious accident resulting in a prolonged stay in hospital and eventual repatriation to the UK by private jet accompanied by medical staff can send charges into the stratosphere – especially if on holiday in the States, where many people are currently headed to take advantage of the weak dollar,” adds Brown.

Brown advises holiday makers to resist the temptation to buy a policy from a travel agent when booking a break - the competition in the travel insurance industry is intense so by shopping around for a travel insurance policy could save them a fair bit of money.

“Travel agents’ mark ups are typically around 60 per cent, and may not deliver the kind of comprehensive cover we would recommend,” says Brown.

Moneynet.co.uk travel cover – top ten tips

1. There are two main types of policy available, single trip and annual cover. Regular holiday makers will find that an annual cover is almost always cheaper per trip than a single trip policy.
2. If you are planning on doing anything other than lying on a beach towel check your policy. All insurance policies will have a caveat that they will not cover you for such as injuries incurred from a "hazardous activity." This may mean you are not covered for camel or elephant rides, for example.
3. Most policies will also include a clause that says financial loss, accidents or incidents owing to alcohol consumption will not be covered - so if you trip over your straw donkey or sombrero after too many sangrias you'll be footing the bill.
4. If you are planning on staying away for longer than 30 days, and with our summer thus far, who can blame you, then you may need to opt for a 'backpacker' policy as most policies will only offer cover for 30 days.
5. Terrorism is on everyone's mind when travelling these days so it's important to understand the extent of your cover if you're affected by an incident. Cover for financial loss or injury due to acts of terrorism varies from policy to policy, but a general rule of thumb is that if you travel to a destination which the Foreign and Commonwealth Office are advising against, you will not be covered. For all other destinations it’s important to check the small print. In addition most policies will include exclusion if your travel plans are disrupted or cancelled due to terrorist threat.
6. For older travellers it can be difficult to obtain insurance with most policies having an upper age limit of 65 or 70, so it's worth considering specialist providers such as Saga and Age Concern.
7. If you are in poor health or have pre-existing medical conditions it's important that you make the insurer fully aware at the proposal stage. Failure to fully declare all conditions could result in your claim being denied should you need to make one.
8. Don't rely on free insurance provided by your bank or credit card without checking the terms and conditions. These are often little more than travel accident policies and it's also a common condition that the full payment for the holiday is made using the card/account in question. If you intend to rely on this cover then check the small print and make sure that you are happy with the cover offered.
9. Think about the country you are visiting, should you require medical attention. For instance, some countries are renowned for their expensive medical costs, e.g the States.
10. Check your destination on the Foreign & Commonwealth Office website to ensure you are not putting yourself at unnecessary risk, and if you are travelling to an EU destination apply for a European Health Insurance Card via the Post Office. These are free and entitle you to reduced-cost and sometimes free medical treatment within the European Economic Area.

1 Source: ABTA (Association of British Travel Agents), July 2007

2 Source: Norwich Union, July 2007

* BBA/BSA data, April 2007