Travel insurance money-saving tips

You don't want to compromise on cover when buying travel insurance, but there are money-saving tips to help you get the right deal at the right price - see our top 10 suggestions.

You won't be surprised to hear that our top tip for saving money on travel insurance is to shop around, quickly and easily comparing policies through a comparison site

Travel insurance is one of those crucial parts of a holiday or business trip that's often overlooked until the very last minute, but by shopping around for a policy you can find the right cover for your needs - and save money, too.

Deciding what level of cover to take out will depend on lots of different factors such as how often you travel and where.

For example, taking out a worldwide annual policy is pointless if you're only visiting Europe once. Solo insurance will be of no use if you're planning on travelling as a family.

Decide what's suitable for you with the help of our beginners' guide to travel insurance, then see if you can save with the help of our top 10 tips:

1. Annual cover over single trip

If you travel abroad more than twice a year then an annual multi-trip policy could be the most cost-effective option.

A single trip policy may work out cheaper if you only plan on making one, perhaps two, trips in a 12-month period.

Did you know...?

  • Doubling up on insurance doesn't just waste your money - it can complicate claims and mean that you end up paying more for cover at renewal

2. Think about the destinations you need

If you do buy an annual policy and you don't intend to venture outside of Europe, then limiting your cover to European travel only is likely to be cheaper.

Remember that if you later choose to head further afield it should be possible to extend your cover, but this may more than cancel out the saving made from not choosing more extensive cover initially.

3. Combine cover for families and couples

Consider combining cover for couples or families - it could work out cheaper than insuring each individual separately.

4. Mind the excess

An excess is the amount you have to pay towards a claim. You may find that the higher the excess, the cheaper the policy, but always ensure you're comfortable with the level chosen - whether making a claim is worthwhile or not usually depends on the excess.

If, for example, a tablet worth £400 is stolen while on holiday and you have a £250, an insurer will pay £150 towards the value of the tablet.

5. Check whether you already have insurance

If you have a product such as a paid-for bank account or premium credit card you may already have travel insurance.Suitcases

Try to avoid doubling up on cover - it means you're paying twice for the same thing, while contribution clauses can complicate claims and mean you pay more for your premium(s) at renewal.

6. Check personal belongings cover limits

Most of us take valuables such as jewellery, a camera or camcorder, mobile phone and other handheld and electronic gadgets with us when we travel. As such, having the right level of cover for personal belongings is crucial.

Over-insuring will mean you pay more for your cover than you need, and it won't benefit you when you come to make a claim.

Equally, of course, under-insuring will leave you out of pocket should something unfortunate happen. Get your estimates right!

Also consider whether your personal belongings are already covered by another policy, perhaps your home insurance or a dedicated gadget insurance policy - as already noted, you should try to avoid doubling up on cover.European Health Insurance Card (EHIC)

7. Get an EHIC card

A European Health Insurance Card (EHIC) is free and entitles you to medical treatment in all European Economic Area (EEA) countries in a medical emergency.

Always remember, though, that an EHIC is a supplement to a travel insurance policy, NOT a replacement.

8. Think carefully before buying from a travel agent

If you buy a package holiday, your travel agent may very well try to sell you travel insurance. This may prove to be a particularly expensive way to take out protection, so instead...

9. Shop around for a better deal

Using a comparison site such as Gocompare.com will enable you to quickly and easily compare policies from multiple travel insurance providers in one place.

10. Get your cover right

Getting your cover right is the most important part of taking out travel insurance - failing to read the small print could lead to you having your claim unexpectedly rejected when you need it most.

Shopping around and saving money is only worthwhile if you don't find yourself out of pocket at a later date.

Remember that the cheapest cover isn't always the right cover for you - take into account your needs and travel risks and decide accordingly.

By Emily Bater