The essence of travel insurance

Finding and purchasing a travel insurance policy can sometimes be one of the most bewildering aspects to planning a much anticipated vacation or holiday abroad. There are many companies operating in the market, each with a wide variety of choices and policies on offer.

The first thing you should know about is why you are purchasing the insurance in the first place. Recent studies have shown that many consumers believe insurance to be a waste of money and as many as a third of Britons travel without insurance, however holding a policy whenever you go abroad is always a good idea.

All insurance policies, in essence, are about risk management. Any traveller with any experience will tell you that travelling is a fairly risky business, especially today. Planes get delayed, airlines lose bags, and occasionally, no matter what you do to prevent it, something really bad is likely to happen, like a serious illness, an accident or a robbery.

The purpose of travel insurance is to reduce the financial burden of these unfortunate events should they occur. As a result, many travellers find that holding insurance brings them great peace of mind while travelling.

When considering an insurance policy, always be sure to read the fine print. As a general rule, insurance policies will not cover everything, so check for exclusions. For example, accidents which occur while the insured party is intoxicated or under the influence of narcotic substances are generally not covered. Accidents which occur while participating in risky sports such as white water rafting, for example, are also usually excluded, unless you purchase special insurance.

Most policies are bundled, meaning that travel accident insurance comes in a policy which also covers the repatriation of mortal remains in the case of death, medical evacuation for serious accidents and trip cancellation/ interruption insurance.

The best way to learn more about insurance is to use a price comparison website and shop around. Buying a policy online can reduce the cost of the policy by as much as 20 per cent in some cases.

Yasmin Purnell

07/04/08