How to get the right travel health insurance and save money

You need a break. You are ready for your holiday. Just one more thing to do, arrange the insurance.

Travel insurance is necessary, and not something with which you should do without. Finding a policy which is not only cheap, but also offers the correct levels of protection for the activities on your vacation can be daunting and boring.

Every policy seems full of small print and get-out clauses for the insurer. It can seem almost impossible to find what you want for a good price.

The majority of travel insurance policies do have reasonably comprehensive cover, and can often be purchased including winter sports such as skiing. Complications arise when it comes to deductibles and health situations, such as pre-existing problems.

What happens if you do need to go to hospital in a foreign country? Will the insurance company pick up the bill, or will you have to claim and pay at the time. This will not be suitable if you have a small budget, but is the way that most policies work.

There are many gaps and get-outs in travel insurance policies, and you will need to spot them in advance, should a problem arise.

Most policies cover trip cancellation, robbery, lost baggage, medical, dental and accidental death coverage, but may also cover emergency evacuation, insurance against delays, lost documentation and 24-hour travel assistance.

The key to finding the best deal is to shop around.

One place to look is a price comparison site such as moneysupermarket.com.

Do not buy your travel insurance from your travel agent

• The coverage will not be as good

• It will be very expensive

• The policy will be less flexible

• It may duplicate areas that you are already insured for

It may seem like a simple solution at the time to buy your insurance from your travel agent, but remember that they are not specialised in this area, and will only be offering one package policy from one insurance company, which they will make money from, and may not suit your needs.

When getting your foreign exchange, your bank or building society will probably try to sell you their travel policy. Like the travel agents, it is usually a simple package from one insurer that may or may not be suitable for you. They also tend to be more expensive than independent covers.

As with most things, you are better off doing your research, and arranging it yourself.

When buying your policy from an insurance company or broker:

• Get quotes from as many companies as you can

• Read the small print

• Does it cover your intended activities?

• Can you waive the pre existing condition exclusion?

• Does it include terrorism?

• Find out what types of cancellation the insurer will not pay out for

• If there is anything you need to know – Ask

There is no point in having the policy if you are unable to claim.

If you travel several times a year, an annual policy will almost certainly work out cheaper over the year.

And finally, be careful what activities you do on holiday, they may not all be covered by the policy. It is very unlikely that any winter sports extension would cover the recent sad case of the man who died while sliding down a mountain on a rubber mattress.

Winter sports cover is special. If you intend to take part in unusual winter sports, check if cover applies on the winter sports section for what you plan to do.

Travel insurance: Hot Topic: February 2008