Most companies have different ways of classifying a customer’s journey. There is usually a split between European and Worldwide policies and also whether some will include or exclude countries such as the U.S.A, Spain, Mexico etc. Depending on which policy you require will determine whether you select an area of travel or input individual destination.
There are 3 main types of Travel Insurance;
Single Trip Travel Insurance
A Single Trip policy is designed to cover you for a single holiday. If you travel more than one each year, it might work out cheaper to purchase an annual multi trip policy. A typical policy will protect you against medical expenses, personal accidents, cancellation, curtailment (cutting short your trip), missed departure or delays as well as much more.
Annual Multi Trip Travel Insurance
An annual multi trip policy is designed to cover those who travel twice or more within the 12 month period. This is instead of purchasing separate cover for each trip you take. Depending on your level of cover there may be a limit on how long each individual trip can be, however this will be noted within the policy wording.
Backpackers Travel Insurance
A Backpackers policy is designed for those who love to travel the world. The policy is different to a single trip policy as it allows you to travel for extended periods of time and different destinations all on the one trip.
What are the benefits of Travel Insurance?
Travel Insurance policies have a number of features and benefits which help cover you and your belongings while you are on holiday. As with all policies, make sure you read the policy wording, however we’ve noted some of the most important features below;
Emergency Medical Expenses
Emergency medical expenses is an important part of your travel insurance policy. This section is designed to cover any costs incurred as part of hospital treatment abroad and repatriation home. Depending on where you are travelling to, these costs could be hundreds or thousands. If you did not have travel insurance to cover these unforeseen expenses you would be liable for such costs. It is imperative you declare any pre-existing medical conditions which affect you or anyone on your policy travelling with you, as this could also affect the premium and cover. If you do not declare a pre-existing medical condition your policy may be voided if you claim for anything related to that condition.
Cancellation or Curtailment (cutting short your trip)
Travel policies include a section for cancellation which is designed for protection against any financial loss on your holiday should you need to cancel due to unforeseen circumstances. This may include pre-paid, non-refundable costs such as transport, plane tickets or accommodation. Cancellation is normally covered as standard in most policies, however it is important to fully check the policy wording to ensure adequate cover is provided. Curtailment is essentially cutting short your trip. This is never ideal, but sometimes the worst can happen and you may find you need to return home early due to a specific reason. This may be due to a family member on your holiday becoming ill or injured, death of a close relative at home or what is classed as ‘an insured’ event. Assuming you return home early, this could mean you are at a financial loss and need to be reimbursed accordingly.
Missed Departure or Missed Connection
Missed departure essentially covers you in the event you miss the departure of your chosen method of transport. For example this may include public transport, a car accident in the vehicle you are travelling in or flight. This should not be confused with Missed Connection, which provides protection if you miss an onward connecting flight after leaving the UK. For example when travelling from the UK to Australia, you may change flights in Singapore on to another plane to complete the final leg of your journey.
Cover for your baggage is standard within a Travel Insurance policy. Policies usually consist of cover for your baggage if it is lost, stolen, damaged or destroyed, with separate limits for single articles, valuables and personal money.
Personal Liability is rarely used on a Travel Insurance policy, however is an important feature nonetheless. In the unfortunate circumstance where you might accidentally injure someone or damage property, this part of the cover is designed to protect against legal bills, material damages and/or compensation. It’s worth fully reading the policy wording to see what is and is not covered, as this will exclude things such as hazardous activities or reputational damage.