How does travel insurance work?

15th January 2019by Joanna White

Travel insurance is simply a type of insurance that acts as a ‘safety net’ when you are travelling and will cover you in the event of incidents, accidents, medical emergencies and unforeseen circumstances.

It works in a very similar way to other forms of insurance policies, and providing that you have the correct form of cover to suit your needs, your travel insurance will help cover the costs you may incur due to falling ill while on holiday, for example.

In this guide you’ll find out exactly how travel insurance works, why it’s worth investing in and what you’ll be covered for under various policies.

What you need to know – how does travel insurance work?

As previously mentioned, travel insurance works just like any other type of insurance; such as home insurance or car insurance. It provides you with cover and protection should something go wrong with regards to your travels.

Depending on the level of cover you have, you’ll be covered for a plethora of different things, including delays, disruptions, baggage misplacement, as well as various medical costs and expenses.

Before you choose your travel insurance policy, there are a few things you should know in order to ensure you purchase the correct one for you and your family.

  • Make sure you’re fully aware of what your insurance policy will cover you for while travelling
  • Ensure you’ve got a fully comprehensive travel insurance plan in place before you travel; you may need to make a claim on your insurance before you even go on holiday due to unfortunate events such as delays or cancellations
  • Be aware that you may be expected to pay for the costs upfront and then have to claim back on your insurance. Oftentimes, your travel insurance won’t offer you the money right on the spot if an incident occurs; you’ll have to go through the filing and claiming process in order to get your money back
  • When making a claim, make sure you can provide your insurer with all the relevant documentation such as receipts, medical bills and statements from various sources, if required

How to get the most out of your travel insurance

When it comes to obtaining a suitable travel insurance policy that will fully cover you and your family for the type of holiday you have planned, there are numerous things you must bear in mind.

In order to get the most out of your travel insurance policy, and to ensure that it works efficiently for you, make sure you’re aware of the following things:

Purchase your travel insurance in advance

As soon as you’ve decided on where and when you’re travelling to, then you must purchase your travel insurance as soon as possible.

The earlier you purchase your insurance policy, the more likely you’ll be covered for a vast range of things. For example, if you leave purchasing your travel insurance until just before you depart for your trip, but find that you have to cancel your trip before you go due to illness or family matters, you won’t be covered and therefore won’t be able to make a claim; therefore losing out on all the money you spent on your holiday.

Try to buy your travel insurance as soon as you’ve booked everything for your holiday; that way, you’ll be covered in the event of cancellations or delays that occur before your trip even begins.

Ensure that you’ve got the right type of insurance

There are so many differed types of travel insurance, that it can be incredibly confusing knowing which one is right for you.

Make sure that you conduct the necessary research before you purchase your policy to ensure that you’ll be covered for all the necessary things.

Some of the types of travel insurance that you may wish to purchase include:

  • Single trip cover
  • Annual multi-trip cover
  • Backpackers cover
  • Cruise cover
  • Winter sports and golf cover
  • Over 65s travel insurance
  • Cover for pre-existing medical conditions

Conclusion – how does travel insurance work?

Travel insurance works in a way that ensures you’re fully covered and protected should something occur while you’re on holiday which means you need to make a claim.

It will cover you for the likes of medical emergencies, loss or theft of baggage and possessions, as well as cancellations and delays.

It works in a way that offers you cover in the event of these occurrences happening, meaning that you don’t have to pay extortionate medical bills or cover the cost of your trip all over again if you need to cancel it.

There are many providers out there and we have reviewed M&S Travel Insurance and Admiral Travel Insurance.