Travel insurance: Peace of mind and whether to buy or not

Why are you talking about travel insurance in February?

Travel insurance isn’t just for summer, you know. If you are going to take out travel insurance, you really should do it as soon as you book a trip and not seconds before your flight takes off.

Why’s that?

Almost two-thirds of claims are for cancellations due to changing circumstances or family bereavement. That can obviously happen at any point between paying for and travelling to your destination.

I already have health insurance. Do I really need travel insurance too?

Yes and no, but mostly yes. Health insurance will typically cover your overseas medical costs up to about €100,000. But it will not cover repatriation costs or the costs if you are the victim of a crime. Travel insurance is also quite cheap, so it represents good value. Your health insurance should lead to a big discount, although the size depends on the company.

Do I still need an E1-11 card?

You absolutely do. Although it hasn’t been called an E1-11 card for nearly a decade. If you are travelling in Europe get (and bring) a European Health Insurance Card. It give you access to public-health services anywhere in the EU and Switzerland. Many countries have a better public-health system than here, so don’t fret about using it. The Ehic people have also created a natty app to help you navigate overseas health systems.

I have had such a card for years, so I’m good to go, right? 

Depends how many years: the card needs to be renewed every five. If you are still calling it an E1-11, you probably need to renew. Apply at ehic.ie. Never pay for the card: some sites will try to charge for the service, but it is free through the official site.

If the Ehic covers my health costs, why do I need travel insurance?

It might not always cover the full cost of care in another country, particularly if you are seen privately, and it does not cover the cost of repatriation or holiday cancellation, so you might still require insurance.

What do I need to know about excesses?

Most policies come with excess baggage, so make sure you are not stung by looking only at the top line. You can, typically, get an excess waiver for no more than €10.

Are there a lot of exclusions? 

There sure are; insurance companies don’t get to be incredible big and wealthy by making it easy to make claims . Companies make the benefits of their policies clear but tend to hide the exclusions in very small print. Phones are not covered in most cases, for instance, while other valuables can lose their cover if they are not with you at all times. And, if you don’t store your passport in a safety-deposit box, you can forget about making a claim for its theft from your hotel room.

How can I check what I am and am not covered for?

A typical travel insurance policy can run to more than 15,000 words. If reading it sounds like too much hassle, download a PDF version or copy the full text into Microsoft Word and search for “not covered”, “excluded” and “exclusions”.

Any other tips?

Yep. Always contact the local police in the event of a theft: no police report, no claim. And do it fast. If you leave a police report for longer than 24 hours, an insurance company might view your claim with scepticism. Bring a photocopy or a picture of your passport with you. If your passport is stolen, having all the details on your phone makes it easier to get an emergency replacement (as long as your phone is not stolen too).

If you incur any expenses because of lost baggage, crime or illness, keep your receipts. If you do not have receipts, companies will not pay out.

I have a medical condition; does that block me from getting travel insurance?

As long as you have health insurance that includes medical cover when overseas, you will most likely not have to disclose any medical conditions.

There are exceptions, however: if you or someone close to you has been diagnosed with a terminal condition before you take out health insurance, any subsequent claim will most likely be rejected. Or if you have the results of serious tests or investigations hanging over you, it might be advisable to let the insurer know there is an issue. If you don’t, a subsequent claim could be rejected.

I am booking my holiday through a travel agent; do I need to buy the policy they want to sell me? 

No. Such policies are frequently a lot more expensive than ones sourced elsewhere. Tour operators will tell you that you get additional peace of mind as their reps overseas will have all the details of your policy to hand should things go wrong. But in an era of digital communications, you should be able to access all the documentation you need handily enough even if your arm is hanging off following a waterskiing incident in Salou.

Speaking of travel agents, does my policy cover me if they go out of business?

All travel agents are bonded, so if they close the State will cover your losses and if the company closes while you are overseas it will also arrange to bring you home.

I have a family policy? Do we all need to travel together? 

A family policy will always work out cheaper, but check the terms and conditions. Some will specify that you must travel as a single unit.

Is a multi-trip annual policy always better value?

No, although generally speaking it is. If you plan to take more than three holidays or breaks in a year. you will save money by buying an annual policy.

Does my insurance cover natural disasters and the like?

It might. But then again it might not. Some of the cheaper policies do not cover travel rearrangement expenses, accommodation and cancellations relating to “natural disasters” outside of weather disruption. If you want travel disruption cover, a policy is likely to increase by €15.

I have just turned 66 and my travel insurance premium has gone up. Is that not unfair?

Yes, it is unfair. Someone who tries to get travel insurance at 66 will pay twice as much as someone aged 65, even though there is no difference in the level of risk the two people pose to companies.

Can companies legally discriminate against me because I am older?

The simple answer is yes. The European Court of Justice ruled that it was discriminatory and illegal to price car insurance based on gender but no such restrictions apply when it comes to a person's age. Trailfinders doubles its regular premium for those aged 66-69, and triples it for those aged 70-75. It doesn't offer cover for those over 76. Ace 65+ offers cover for those aged 65-75. However, only people with health insurance covering emergency medical expenses abroad are eligible. If you are older than 75, you can get cover on cleartotravel.com.