Cheap travel insurance: Why it's not worth the risk

Young family on beach

When it comes to travel insurance, it pays to shop around for the lowest price, right ? It’s easy to take out a policy online before you travel and only think about the cost, rather than what you’re actually getting for your money. 

The cheapest products can end up costing you more in the long run by providing poor value and service. It pays to check what is included and go for an established insurance broker. 

Why it pays to check travel insurance small print

Some companies offer travel insurance for little more than the cost of a beachside cocktail. Look a little closer and these policies are often next to worthless: they cover you for theft, but not if this occurs at a beach, or you had been drinking when the theft took place. If cash is stolen, there are often limits on how much you can claim back.

Some policies impose restrictive limits on how much they will pay out for certain items. For example, if your £500 wedding ring is stolen, you would face paying a £200 excess and the insurer would limit their pay out to £100, leaving you £400 out of pocket. 

Computerquote travel insurance offer a clear, travel insurance policy wording where you can quickly see what you are covered for and for how much.

Left high and dry on cancellation

Insurance should give you the peace of mind that if your holiday is cancelled or cut short, you will have your money back to pay for another trip. However, some budget travel insurers only pay out tiny amounts or impose tough conditions on when a claim can be made for cancellation. Many holidaymakers found this out the hard way during the Icelandic ash cloud eruption in 2010.  

For example, some popular policies might limit compensation to £500 per person for a cancelled holiday. Other insurers offer an amount for every 12 hours you have to wait if your holiday is delayed. The sums involved can be as little as £20 every 24 hours.

Computerquote travel insurance covers you for up to £2,000 per person on our Premier policy and up to £4,000 on our Premier Plus policy.

Adding insult to injury on hospital costs

If you’re unlucky enough to end up in hospital on holiday, the last thing you need is added worry about whether your costs will be covered by your insurance. Some policies make bold claims about offering millions of pounds in cover, but when you look closely all sorts of terms apply excluding severe injury, illness linked to an undeclared medical condition or imposing excesses of £500 or more.

If the worst happens and you or a loved one are disabled or killed while abroad, cheaper policies tend to pay out small sums in compensation. This can be as little as £5,000 if an adult is paralysed or £1,000 if a child dies. Some insurers offer less if the insured is over 75, or restrict the amount they will pay towards repatriation costs, which can be an expensive and complex matter. 

It is important that you tell us if you have any pre-existing medical conditions. Computerquote travel insurance offers cover for people travelling with pre-existing medical conditions (subject to medical screening). We can also arrange specialist travel insurance with no age limits.

Pay for quality holiday cover

Your travel insurance is essentially a safety net if something goes wrong, so make sure it doesn’t have any holes and is made of strong stuff before you buy! 

Computerquote policies follow government guidelines on required levels of cover, including generous compensation for events like cancellations, illness, theft and missed departure. Get a travel insurance quote today on  0800 028 7056 or 023 9241 9066.

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Published: 9th October 2016 (RB)