Travel insurance deals with some of the main problems which can be encountered when travelling to and from and staying in foreign countries. Most travel insurance policies cover some or all of the circumstances and items listed below and almost all policies limit what they are prepared to cover and the amounts they will pay out. Where a policy replaces items on a new-for-old basis, the insurer pays the cost of repairing damaged items or pays to have them replaced if they are stolen or destroyed.
Some policies apply an excess for medical claims, which may be waived if the traveller uses a European Health Insurance Card (EHIC) to obtain medical treatment in Europe.
- The theft, damage or loss of baggage and personal possessions
- Loss or theft of cash and traveller’s cheques
- Loss, theft or damage to spectacles
- Medical treatment costs (some insurers cover pre-existing medical conditions, some do not)
- Compensation for trip cancellation and/or curtailment
Cover is available on an annual basis or on a single trip basis. Depending on the number of trips made, annual cover can sometimes be less expensive on a per trip basis, than single trip cover.