Use Sunscreen, But Go Easy on the Insurance Cover

While it may go against your best instincts, taking out the maximum amount of travel insurance isn't always the best way of ensuring you are covered for any holiday disasters.

It might turn out to be a waste of precious Pounds which could rather be spent on additional holiday luxuries, like a few bottles of the best bubbly or a good paella.

Here are a few hints on how to go about choosing just the right amount of travel insurance to cover your needs.

Medical cover

Medical cover is of course all important for any holiday abroad but too many holiday-makers make the mistake of over-insuring themselves.

Insurance experts generally agree that £2m is adequate cover for most holidays abroad.
If you are holidaying in Europe you could get by with even less, particularly if you possess an EHIC card.

This card offers basic medical cover throughout Europe (including Switzerland) for anyone, not only school children.

But it is not, however, a replacement for general travel insurance.

It will not, for instance, cover lost baggage or cancellation costs and in addition will not cover your having to be brought home in an emergency.

The EHIC is a comforting supplement to your conventional travel insurance policy and will reduce any excess charges should an unexpected emergency arise while on your holidays in Europe.

The card is easily available either online, or from your local Post Office - and it is completely free.

Personal liability cover

Here again, you should need no more than £2m personal liability cover for the average holiday.

This is essential if a legal claim of any sort is made against you while you are abroad.

However, if you are planning a few wild days of partying with the lads you might need to top that up!

Cancellations and delays

With the strong likelihood of cancellations or delays at some stage of your holiday (particularly if you are leaving from Heathrow Terminal 5!) it is important that you are adequately covered for any possible cancellations or delays.

A good insurance policy should provide for this.

Lost luggage

It is not necessary to go overboard on insuring your baggage.

You should not need to pay for more than £1500 luggage insurance for an average family holiday.

However, if you are taking along valuable and expensive equipment with you, then it is advisable to increase it, or take out separate insurance for that item (eg. laptop insurance or iPod insurance).

But before you take out any luggage insurance, first check on your home contents insurance policy.

Some policies offer cover on items such as luggage when you are travelling abroad, so you may not need to take out separate cover.

Many credit cards offer free travel services, including travel insurances, medical and legal help overseas, emergency cash and card replacement services, as well as often providing a discounted travel service for booking flights, hotels or holidays.

about the author:

Shirley Stevens

Shirley Stevens is a freelance finance journalist specialising in UK personal finance. Her work regularly appears on ChooseMoney.co.uk, the compare credit card site that also compares insurance and other personal finance products, including the best credit cards for travel.

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