Box clever with travel insurance
02-04-08
LONDON (Reuters) - Going on holiday does not always entail rest and relaxation -- as hundreds of passengers recently caught up in chaos at British Airways' new Heathrow terminal can testify.
While such circumstances are outside holidaymakers' control, insuring against the unforeseen can help to ease the pain.
Firstly, make sure you have a European Health Insurance Card, which replaced the E111 form at the start of 2006.
Free to all UK travellers, the card entitles the holder to free or cut-price essential medical treatment in European Union countries, Switzerland, Iceland, Norway and Lichtenstein.
The cards should not be seen as a replacement for travel insurance, but not carrying one could void broader cover.
Unlike the E111, which covered the whole family, every family member must hold their own card. Apply online at www.ehic.org.uk, call 0845 6062030 or pick up a form at the Post Office.
With that in order, consider wider insurance. Many "premier" current accounts include travel insurance as one of the perks, while some credit card providers also give travel cover.
Most banks offer packaged current accounts, and 25 out of 63 packaged accounts on the market come with travel insurance, with the majority offering worldwide, multi-trip policies for the entire family, according to MoneyExpert.com.
Chief executive Sean Gardner said: "Cutting the cost of going on holiday is difficult because, most of the time, people don't want to take out financial products with this specifically in mind.
"The most obvious cost-cutting process is to get best value out of your travel insurance: if you already have a packaged account, for example, you might find your whole family is already covered for a trip anywhere in the world."
The Office of Fair Trading's test case in the High Court on bank charges -- and whether or not they are fair -- has led some commentators to herald the end of free banking, a move which would likely see packaged accounts increase in popularity.
In exchange for a monthly fee of up to 25 pounds, these accounts usually offer better credit interest and authorised overdraft rates, as well as benefits that typically include car breakdown cover and mobile phone insurance.
The key, however, is to make sure that the monthly fees do not exceed the value of the add-ons you will actually use.
From the start of next month, Lloyds TSB will increase the monthly fee on its "gold service" and "platinum" current accounts by two pounds per month to 12 and 17 pounds respectively.
In return, account holders will receive increased mobile phone insurance of up to 2,000 pounds, "save my numbers" -- which backs up the numbers saved on customers' mobile phones -- and Airmiles if holidays are booked via its travel service.
But, depending on your needs, a best-buy standard current account could prove more economical. Not only would you save hundreds of pounds per year on fees, but a better interest rate could be achieved.
Alliance and Leicester's "premier direct" current account pays 8.19 percent interest on balances of up to 2,500 pounds, compared to as little as 0.10 percent with Lloyds TSB.
The savings made could more than meet the cost of buying benefits, such as travel insurance, independently.
Three-quarters of credit cards offer travel accident insurance -- which covers medical, travel and accommodation expenses in the event of accident and injury -- to those who pay for at least part of their holiday or travel with their card. Some cards also give lost luggage cover.
If taking out a stand-alone travel insurance policy, an annual or family policy often proves better value for frequent travellers and those with children.
Look out for discounts for buying online and read the small print to make sure you know what you are covered for.
Common exclusions to travel insurance policies include medical expenses due to acts of terrorism and pre-existing medical conditions, including pregnancy.
Totally Insured Group recently launched a policy that covers delays in the event of a security or terrorist-related incident.
The cover, believed to be the first of its kind, gives additional travel, overnight accommodation, subsistence, alternative re-ticketing, and excess car parking charges as long as the delay is for more than six hours.
Read the article at source : http://uk.reuters.com
END
For more information contact:
Lena Samuels
Marketing Manager
Totally Insured Travel Ltd
Phone: 0870 240 8892 or 0751 9974023
Fax: 01794 524091
Email: info@totallyinsuredtravel.com
Totally Insured Travel Ltd
Suite 4a, Abbey Walk, Church Street, Romsey, SO51 8JQ
www.securitydelayinsurance.com
Notes to editors
1. ABOUT THE TOTALLY INSURED GROUP
Totally Insured Group (TIG) is an independent financial advisor specialising in providing financial services for people with pre-existing medical conditions in addition to helping those fortunate enough to enjoy full health. Specialising in life insurance, mortgage protection insurance and critical illness, it can provide cover for individuals suffering from a range of conditions that are typically not covered by the leading insurance companies.
www.theinsurancehelpline.co.uk
TIG was a finalist in the “best protection advisor 2008” category at the Money Marketing Awards, recently held at the Grosvenor House Hotel, London 5th March 2008.
www.totallyinsuredgroup.co.uk
Totally Insured Travel Ltd is an appointed representative of Totally Insured Group Ltd which is Authorised and Regulated by The Financial Services Authority.
2. STATISTICS ABOUT THE FLYING PUBLIC
There were over 60 million visits out of the UK in 2005.
Around 42 million of these visits were for leisure.
Some 20 million consumers purchase travel insurance each year.
Market value over £600m per year
ONGOING TERROR THREAT ASSESSMENT
*There is a serious and sustained threat from international terrorism to the UK and UK interests overseas. The current threat level is assessed as “Severe”.
The most significant terrorist threat comes from Al Qaida and associated networks. Information on Al Qaida's typical methods of attack and targets and the current threat to the UK has been prepared by the Joint Terrorism Analysis Centre (JTAC).
* MI5 Website February 2008.