The importance of travel insurance
June 15, 2022Come rain or shine, the typical British summer holiday is almost certain to involve an element of travel. The staycation remains a popular bet, but with the lifting of several years of travel restrictions, foreign holidays are once again within many families’ reach.
The upsurge in holidaymaking – at home and abroad – has revived the importance of travel insurance.
Cancellations
Even the early summer of 2022 highlighted a critical area of coverage included in most travel insurance policies – making good your financial losses from cancellation. The press was full of stories of thousands of air passengers who had their holiday plans ruined by last-minute cancellations.
Whether you need to call on your travel insurance to make good your losses from such cancellations depends very much on the reasons for withdrawing your flight.
If your airline cancelled the flight, it is their responsibility to book an alternative or to offer you a full refund.
If you need to cancel your flight, on the other hand, the airline does not need to offer any refund or compensation. Though, if you have a good reason to cancel, you might be able to claim on your travel insurance.
Your reasons for cancellation
As Citizens Advice points out, travel insurance companies typically pay out on holiday cancellation claims only if you’ve had good reasons for doing so. Some of those reasons might include:
- a death, injury, or illness within your immediate family;
- a home emergency – such as a burglary, fire, or flooding;
- an unexpected redundancy;
- discovering that you are pregnant after you arranged your travel insurance, and you have since been given medical advice not to travel; or
- you have been summoned for jury service or as a witness in a court case.
If you simply change your mind about going on holiday then, of course, your travel insurance will not pay out.
Medical emergencies and personal injury
The possibility of travel arrangements being cancelled – and the need for travel insurance to provide compensation – might be at the forefront of your worries given recent events. But probably the most significant safeguard any travel insurance offers is in the event of a medical emergency or personal injury.
Whether at home or abroad, a medical emergency or an accident in which you or a member of your family is injured requires immediate attention – and you will not want to worry about the cost.
It is not difficult to imagine likely scenarios. If you live in the southwest of England but are holidaying in the Scottish Highlands where you have an accident and break your leg, for instance, you will need treatment and the money and logistics to get home. Travel insurance can help with this.
If you are abroad, the need for travel insurance cover for medical emergencies and injuries is even more critical. For example, the government website – updated on the 3rd of December 2021 – estimates that it could cost you as much as £100,000 if you get a stomach bug or some other infection when on holiday in the United States, need hospital treatment, and eventual repatriation to the UK. Even a simple fall resulting in a broken leg could result in a bill of £15,000 if you needed treatment in Spain and return flights home.
Loss, theft or damage of personal items
Finally, loss, theft or damage to any personal items may also be covered under your travel insurance policy.
Summary
In short, as thousands of holidaymakers look forward to long-awaited breaks abroad or in the UK, travel insurance has probably never been more critical. It could save you thousands of pounds in cancelled plans, medical emergencies or even lost or stolen baggage.