Travel insurance protection dropped as travel plans squeezed
Holidays squeezed as prices rise
Sunday, 06 Jul 2008 21:23
Holiday plans are falling by the wayside as rising inflation and the credit crunch make money tighter.
A poll by Norwich Union reveals 58 per cent of Brits will take fewer holidays this year, and three in four are planning to take breaks in the UK rather than abroad over the course of the year in a bid to reduce holiday costs.
A third of people said they planned to holiday only in the UK, and 13 per cent are intending to have fewer trips to Europe.
However, the importance of a break means 65 per cent will use their savings to pay for their holiday this year, rather than use a credit card.
Also people are looking to back to basics with their breaks – with 51 per cent admitting travel insurance could fall off their 'to do' list when planning their holiday this year.
Suzi Fenn, at Norwich Union, said: "Understandably, people are looking to make savings on their holidays this year given the economic climate. However, with more than £60 million paid out in 2007 in insurance claims for everything from medical emergencies to damaged baggage, scrimping on this essential travel cost really isn't worth the risk."
She added: "The reality is that accidents and illnesses do happen on holiday, and you could end up footing an expensive medical bill if you haven't taken out proper cover."
For example, breaking a leg in Cyprus could cost you £18,000 with more than half of that expense being the cost of getting you back home.
Norwich Union has now issued some tips on travel insurance as the holiday season approaches:
- Organise your insurance policy as soon as you have booked your trip
Having travel insurance in place straight away means any cancellation – if for example a relative is taken ill – will be covered. - Tell your insurer about any pre-existing medical problems
If you don't tell them your claim could be invalid. This means you would have to cover all of the costs of your medical treatment. - Know your rights if your plane is cancelled or delayed
As a general rule travel insurance is not responsible for getting you to and from your holiday destination - that is the job of the airline or tour operator.
Under EU regulations for air passenger rights, all airlines departing from an airport in an EU member state have responsibilities to assist you if your flight is cancelled or delayed. Insurance can also provide cover in the event of a delay. . - Transport problems
If you miss your flight due to car or public transport problems check your travel insurance will cover you. . - A bargain is not always the best choice!
Some insurance policies may seem like a bargain but if the one you choose doesn't meet your needs or offer adequate cover in the event of a claim, it's not a bargain. . - The EHIC is not a substitute for travel insurance, it is complementary to it
The EHIC (formally the E111) entitles you to state-provided emergency medical treatment in European Economic Area countries. The treatment available does vary between countries and it may not cover all the treatment costs (or any repatriation costs) so full travel insurance is essential.