Dangers of Cheap Travel Insurance
Annual/ online health cover, repatriation and excess
Advice and tips on getting the right package for injuries, accidents, theft, loss, adventure sports, illness, cancellations, delays and robbery on holiday.
It seems incredible that many of us will not bother getting travel insurance, thinking that in doing so we will save a bit of money that can be spent on the holiday. Yes, you may have a few extra euros, pounds or dollars in the pocket to spend on wine, meals or tours, but if something goes wrong, it is going to cost a lot, lot more down the line.
The main reason, of course, that many people get travel insurance is to replace things that may be lost or stolen while they are on holiday, either at home or abroad. In truth, a lot of the time this is hardly worth the cost of getting the insurance in the first place. Unless you are taking very expensive items with you, the chances of losing anything (or having anything stolen) that is worth more than the excess you’ll have to pay are not high. This is especially true with the cheaper packages – they cost less up front, but tend to have high excesses which can often put people off making claims.
If you are travelling with expensive items, and this is your primary reason for taking insurance, it may be worth paying a little extra to reduce the excess payments. It is also worth shopping around for cover, as many insurers cater for specific segments of the market.
Protecting your belongings should not be the primary reason for taking insurance cover, however. We have all heard horror stories of things going wrong on holiday. Accidents happen, illnesses strike and foreign hospital treatment can be extremely expensive. If you do not have insurance cover, and you are taken into hospital whilst on holiday, you could be facing a bill that you simply cannot afford to pay. Here is also where a more expensive package could prove better value – often the cheapest deals require you to pay up front and then reclaim the money. You should look out for whether this is the case before you sign up.
Another thing to look out for is repatriation. If you have a serious accident or even worse, a fatal accident, you will have to be flown home at some point. This is not just the cost of a flight, but the cost of all the specialist equipment that would have to go on the plane with you, and it is hugely expensive. Some insurance policies do not include repatriation as part of their package, and if yours doesn’t, you should seriously think about upgrading to one that does.
Other things to bear in mind are how often you travel and what you do when you go. If you travel regularly, it may be better value to invest in annual travel insurance rather than getting each trip individually insured. It will cost more up front, but work out cheaper in the long run.
Secondly, you should make sure the activities you get up to whilst on holiday are covered, particularly if they involve what may be classed as dangerous sports. Even things like skiing, cycling and rock-climbing are not included on many policies, and if anything happens to you while you’re in action, then you’re going to be in financial trouble as a result.
