All You Need To Know – For many travellers, travel insurance has always been a grey area in that some holidaymakers do not see it an an essential and resent the extra outlay on top of what is already a significant expense for a holiday, whereas others of us would not set foot in an airport without it. With so many different insurers around it can also be difficult to know which elements of your trip need cover and for how much money each part need to be insured for. No two policies are the same and this can further complicate things when it comes to finding the right policy. In the case of luxury travel and the increased cost of the holiday, is there more to take into account when choosing insurance?
The most obvious difference between insuring a luxury holiday versus an average priced holiday is the cost. As you would expect, when insuring something of greater value, the premiums are higher, but then so to is the cover offered. Insurance for luxury travellers can offer a personal liability of anything up to £2 million and medical expenses of up to £10million. Benefits also include higher sports equipment cover, baggage cover of anything up to £5,000 and a better policy on last minute cancellations, allowing the opportunity to recover a larger proportion of the holiday cost.
Take away the considerable hike in premium and coverage, and apart from some providers offering no excess to be paid in the event of a claim, the principles of the cover are pretty much the same as insurance for an average priced holiday. The most important thing to consider when arranging your insurance, no matter the standard of your holiday is that you are choosing the best policy for your needs. We all dislike reading those long and tedious terms and conditions but if there is ever a time that you actually do it, make sure it is in relation to the insurance you are agreeing to pay for.
Your insurance needs will also depend on where you are travelling to; the most extreme example to use is that some policies do not offer protection against any sort of natural disaster or terrorism. And in the cold, harsh light of day, this may need to be considered.
This depends on the frequency of your trips. If you know you are taking more than one trip in the year, it always tends to be better to buy annual cover and keep the same premium, than to purchase a new policy each time and risk a rise in cost (your age may have changed, for example). If you are unsure whether you will be travelling abroad again in the same year, the single policy option is likely to be much more cost-effective.
You then need to consider where you are travelling to. If you are planning an extended trip to the USA and one short weekend break in Europe, the annual option may be best. However, if you are planning a couple of trips in Europe or just outside of the UK, single policies may work out cheaper for you. Alternatively, if you and your spouse or another family member (apart from children under 16) are going on separate trips at different times, the annual policy will cover both of these.
Finally, if your trip duration is going to exceed 31 days, a lot of single policies will not cover this and therefore an annual policy is really the only option. It is always best practice to price up exactly the type of cover you will need and compare multiple options.
There are companies offering insurance specifically tailored to cruising and travel companies that do cover cruises as standard. These policies may not be as extensive though as specially bespoke cruise holiday insurance and it may be more beneficial to choose the plan that offers more depth. Doing your research will guarantee that you are not left stranded when you need to protect yourself and your assets.
Useful Information: American Express are one fo the companies we can recommend for luxury cover (see our deals page).