What are the different types of Policy available?

Policies are differentiated mainly by what benefits they offer. Like most insurance policies, the higher the premium, the more comprehensive cover should be offered. But there can and will be exceptions to this, so you should take the time to look at the policy details, and make sure that you are buying the type and level of insurance cover that you require.

Most standard travel insurance policies do not include cover for 'hazardous pursuits' like skiing or many water sports. Skiing holidays are covered by more specific policies. You need policies in order to cover the loss of ski equipment, ski passes and the cost of a possible mountain rescue, particularly if you are a lover of off-piste skiing. There is no point in buying travel insurance cover that includes extreme sports if you are not intending to undertake those sports, or else you may be over covered, which is a waste of money.

Should you be travelling within the UK, the only type of policy that you need is realistically a simple cancellation insurance policy, which will cover you for cancellation costs in terms of any transport or accommodation. Due to the availability of the NHS you shouldn't really need medical insurance cover. Should you be taking a pet with you, then you may need pet insurance cover, particularly one covering financial loss caused through damage that is caused by your pet.

Look at the policy details to find out what the initial excess is. Policies differ, and one with a low premium may feature a very large excess, which means that you have to pay the first portion of a claim. Look also at restrictions on the amount you are able to claim on single items, as this could be lowered to lower your premiums.

Then you should look at the level of cover that you actually need. Look at your personal circumstances, combined with the type and method of travel you are undertaking. If you are not taking a holiday near traditional tourist resorts then you need access to a 24 hour helpline where English is spoken and there is knowledge of the area that you are in.

Also look at the exclusions. Should you be taking an expensive item of equipment or luggage with you, is its value above the single item limit? Might it not be cheaper to arrange with your insurer for specific insurance for the particular item? Also look at your house contents policy to make sure that you aren't covering yourself twice for the same item, which may be covered outside your home.

If you are travelling a lot in the next year, you should get multi-trip insurance, otherwise known as annual insurance, which may be cheaper due to "bulk" buying.

© AskFinancially.com 2008

Travel Insurance

Insurance & Loans

Copyright

What are the different types of Policy available?

© AskFinancially.com 2008

Travel Insurance

Insurance & Loans

Copyright