Reading a travel insurance policy

Travel insurance bundles distinct products under one certificate, each with its own limit, its own excess and its own exclusions. Medical and repatriation, cancellation and curtailment, delay and missed departure, baggage and personal effects, and personal liability are effectively five policies, and a claim is assessed under one of them rather than against the headline sum.

That is why the price comparison that matters is section by section. A policy with a large overall figure and a small per-item baggage limit is a different product from one arranged the other way round.

The cancellation and baggage sections cover sums you could probably absorb. The medical and repatriation section covers a sum you almost certainly could not, and it is the reason to hold cover at all. Read its limit, its excess, and what it says about repatriation and about a companion staying with you.

Reciprocal healthcare arrangements between some countries reduce but do not replace this. They typically cover state treatment on the same terms as a resident and do not cover repatriation, which is the expensive part.

Insurers publish their exclusions and claims are declined under them rather than in spite of them. The recurring ones are worth knowing before you buy, because several are avoidable by choosing a different policy or by declaring something honestly at the outset.

• Pre-existing medical conditions, undeclared, including conditions of a relative whose illness causes you to cancel.
• Alcohol, which is read broadly in some wordings and narrowly in others.
• Activities the insurer classes as hazardous, which can include ordinary things like riding a scooter or skiing without a specific extension.
• Travel to a country or region a government has advised against, which can void cover entirely for the trip.
• Unattended possessions, and items not reported to the police or the carrier within a stated period.
• Claims without documentation, which is why the report and the receipts matter as much as the cover.

Cancellation cover generally runs from the date the policy is purchased, so a policy bought the week before departure covers you for very little of the risk you were exposed to while you held the booking. If cancellation is a real concern, the time to buy is when the trip is booked.

An annual multi-trip policy usually costs less than three single-trip policies, and it removes the temptation to skip cover on a short trip. Check its per-trip duration limit, which is often shorter than people assume.

Some credit cards, packaged bank accounts and employer schemes include travel cover, occasionally good cover. It usually comes with conditions — that the trip was paid for on the card, that you are under an age limit, that you registered before travel — and it is worth reading the certificate rather than trusting the marketing summary.

Where you already hold adequate cover, buying more does not double your payout. Insurers apply contribution clauses between policies, and the second policy frequently buys you nothing but the excess on a second claim form.

We are a travel agency, not an insurance intermediary. We will tell you what a fare's own change and cancellation rules are, in writing, before you pay, so you know exactly what risk is left for a policy to cover. Deciding whether and what to insure is yours, and any policy you buy is a contract between you and the insurer.