A guide to insurance
Travel Insurance Guide
Personal Finance and Savings
Travel insurance, like any other type of insurance, is there to cover you when things don’t quite go according to plan.
So many people leave home without appropriate cover, but if they had an accident, the medical costs would probably make the bankrupt.
We provide you with the basics of travel insurance, to make sure that your last minute deal doesn’t leave you with nothing.
How does it work?
Travel insurance can cost very little, when compared to the increasing costs of medical treatment, and it seems
But, insurance companies make their money from those people who don’t claim, for example, if 100,000 people buy insurance at £150 and no one claims, the company will have made £15 million.
Insurance is sold in policies, and most of them are standard, but if you need other things added like skiing and adventure sports, then you will probably need an upgraded version.
Do I really need it?
It is a common conception that insurance is there to pay for things that get stolen or damaged, such as your camera, but in fact, it is much more serious than that.
The cost of medical care is very expensive and varies in each country, for example, in Spain it would cost about £9, 000 to treat a broken leg and an air ambulance in South Africa is £18, 000.
So, without insurance, it becomes difficult to find a way to pay for the treatment.
Could AMEX help you with your travel insurance?
This predicament has led many people to turn to their parents for help, and in an attempt to pay for the mounting medical bills, they have become bankrupt, lost their home, or spent their entire life savings.
If you are only travelling within the UK, you won’t really need travel insurance. But, it is an idea to get cancellation cover just in case something happens at the last minute.
Policy Types.
Annual - If you travel more than twice a year, it is probably cheaper and more convenient to take out an annual policy.
Usually, the maximum length of a trip is 31 days, so make sure you are covered if you take a longer holiday.
These policies also generally cover winter sports for a duration, but may not include scuba diving, but it is always a good idea to check that you are covered for any activities you may do on your holiday.
Single Trip – This is self-explanatory, basically you can buy insurance per trip for a certain duration, although they don’t generally cover winter sports.
This will mean that in order to cover things like that, there will be a higher premium to pay.
Backpacker/longstay – If you are a student or simply want to take an extra long break, then this is the insurance policy for you.
This covers longer holidays and back-packing trips and will often include cover for working abroad, but check the small print.
Winter sports – Not all policies cover winter sports, so usually you will have to get extra cover.
Could AMEX help you with your travel insurance?
Who is covered?
A couple policy is an option for those who often travel together, but this type does become a problem when a person goes away without their partner, because in many circumstances they are not covered when travelling alone.
If you go away on business trips on a regular basis, you should make sure that you are covered because many normal policies exclude business travel.
The other option is family cover, and if you have children, this will be better value. However, watch out for the number of children allowed on the policy and also check if your children are covered if they travel independently from you.
Where should I get it from?
There are many options when it comes to buying travel insurance, with many high street supermarkets now offering competitive prices.
Travel agents provide travel insurance and usually try to get you to purchase it along with your holiday, however, this is often much more expensive and doesn’t always provide the cover that you need.
It is always a good idea to shop around to get the best quote, major insurance companies and supermarkets such as Tesco, offer good policies.
Although, don’t lie to the insurance company to try to get a cheaper quote, because if ou do have an accident the likelihood of you being covered are slim, resulting in you having to pay for the treatment.
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