Book your travel insurance before it's too late
Published: 30 January 2008 By Fergal Barry-Murphy 2 Comments
British consumers are leaving it too late too late to book their holiday insurance, with many missing out on pay outs for cancelled flights and other travel-related mishaps. There is no better way to beat the January blues than by booking a nice holiday. In this article we help you get the most from your travel insurance.
New research shows that almost two thirds of British holiday makers do not book their travel insurance until less than two weeks before departure, with half buying insurance within a week of leaving for their trip.
However, anybody who pays for a flight or a holiday and does not take out insurance at the same time is risking losing the full value of their trip if they cancel. And with some holidays costing thousands of pounds this is quite a risk to take.
“It seems holiday makers are booking flights but leaving their insurance until the last moment. However, they will miss out on valuable cancellation cover which will protect them for all or part of their flight if the trip is avoidably cancelled,” says Peter Gerrard, head of insurance research at moneysupermarket.com.
“It is worth noting you may not be covered if you have cancelled your holiday because of any pre-existing medical conditions, the death or illness of a pet, or if you have any travel phobias, stress or anxiety.”
There are any number of reasons why you may need to cancel a flight, and many of them will be beyond your control. Even hugely popular travel destinations can experience unexpected problems and political upheaval at any time. Take for example Thailand, one of the most popular holiday destinations among Britons. A little over three years ago the whole west coast of the country was a no-go area for weeks after the tsunami. And in late 2006 travelers were advised against traveling there after a military coup, albeit a peaceful one.
The point is that you just never know why you may have to cancel so you should always take out travel insurance when you pay for your holiday. As with any insurance product, read the small print carefully to make sure that the policy meets your needs and that you understand what you are, or are not, covered for.
You should at least be covered for cancellation in the following circumstances:
- Jury service
- Serious damage to your home or business premises
- Bereavement in your immediate family or the death of a business partner
“Cancellation policies vary widely between providers with some offering up to £3,000 worth of protection and others only £750, which might not be enough to cover flights for a family of four,” says Peter Gerrard.
You should also look closely at the other terms and conditions of your policy. Make sure that you and all of your traveling party are covered for all activities you plan to engage in. Also check that medical cover is adequate and that your belongings are insured.
The travel insurance market has become extremely competitive and there are some very good deals available for British travelers, especially online. In many cases, the website or the travel agent that sells you the flight or holiday will also offer you travel insurance. However, this is not necessarily the best deal so be sure to shop around. Most likely, you will find a better deal elsewhere.
This article mentions cancellation of flights several times, as a reason for buying travel insurance. There are only limited times when you can actually claim for this, and usually the insurance companies will not pay out if the flight is cancelled by the airline.
We have just been caught by this when Bristol airport was closed by snow, and my husband was to fly in to it. The airline were unable to offer him another flight, and so instead he bought himself a flight to London and caught the train back to the West country.
The travel policy refused to have anything to do with reimbursing him for all the extra expense, even though he was not responsible for any of it. Do not assume that the insurance company will pay for flight cancellations – they will not part with any money unless they absolutely have to, no matter how much your policy costs you.
I too have had experience of this. Easy jet cancelling the flight (due to the worst snow in 18 years) and the next flight being full. Although Easyjet paid for the flights, we had pre-paid for accommodation. AXA refused to pay as they only cover delayed scheduled transport, not cancelled.
Although this seems crazy, it seems when an insurance policy mentions cancellation, this only applied if ‘you’ have to cancel due to extreme circumstances – not if the airline has to cancel. Nowdays I check with every insurer before I take the policy, but when you look closely – very few travel insurance policies cover you for costs incured due to your scheduled transport being cancelled.