TRAVEL INSURANCE

USAThe basics

Travel insurance can cover you for a range of problems when travelling abroad, from the catastrophic to the merely inconvenient.

When you buy a holiday or a flight, you'll almost certainly be offered insurance to go with it. It's all too easy to say yes, and add the cost to the bill, but you are probably better off shopping around and taking out a policy independently.

Single trip or annual?

You need to decide if you should take out a policy that will cover you just for one holiday, or take out an annual policy that will cover you for all the trips you take (within limits) for a whole year.

You don't have to be a very frequent holidaymaker to save with an annual policy – for example, an adult travelling within Europe would need to take only three holidays in a year to make it worthwhile.

An annual policy is particularly convenient if you're the type of person who likes to take advantage of last-minute deals as you won't have to remember to take out insurance, even if you decide to take off on the spur of the moment.

However, whichever type you go for, use our guide to check for policy features and also common exclusions to make sure there aren't any nasty surprises should you wish to make a claim.

Baggage and money

Travel insurance normally covers you if your baggage and belongings are lost or stolen or damaged – up to a certain limit. Our Best Buys all have a limit of at least £1,500.

Cover for valuables

As well as an overall limit, policies also have a limit on individual valuable items, usually of between £200 and £500.

New for old

With policies that replace items on a new-for-old basis, the insurer either pays the full cost of repairing damaged items or pays to replace them if they are stolen or destroyed.

Cover for spectacles

Some policies won't pay for the cost of buying new spectacles if they are stolen or damaged while you are away.

Cover for money

There's usually a limit on the amount of cash a policy will pay out for if you are robbed. Such limits (between £200 and £500, depending on the policy) also include travellers' cheques. The Best Buys all offer at least £1,500 of baggage and belongings cover plus additional cover for money.

Medical cover

All of our Best Buys offer at least £1 million of medical cover in Europe, and £2 million in the USA and the rest of the world. This cover includes the cost of an air ambulance to get you home, should this be necessary.

One of the main issues with travel insurance is whether the insurer will cover pre-existing medical conditions. Some policies will automatically exclude any pre-existing condition; others take a more sympathetic approach.

Either way, you should always discuss any pre-existing medical condition with an insurer before buying a policy – and answer any questions they ask you about this honestly.

This web page is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or not make) any decisions. Always obtain independent, professional advice for your own particular situation.