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Why you should buy when booking your trip – Forbes Advisor UK

Planning your vacation? Buying insurance when you book your trip gives you immediate coverage in the event of an unforeseen emergency, such as catching the Covid or losing your job, which can result in the cancellation of your vacation.

Here’s everything you need to know about when to buy travel insurance and how cancellation coverage works.

Why should I buy when booking my vacation?

If the idea of ​​a summer vacation appealed to you this year, you are not alone.

According to Simon Cooper, founder of package vacation provider On the Beach, businesses like his saw a surge in bookings for the summer of 2022 after Covid testing requirements were relaxed in early January.

While fewer Covid tests for returning UK travelers indicate the virus may not pose as much of a threat to the holidays this year, the possibility of catching Covid or having to self-isolate, as well as a range of other risks that could prevent you from going away, staying still.

According to our insurance partner, CYTI, vacation cancellations and medical expenses account for 85% of travel insurance claims. This means that it is important to have insurance protection before the start of your vacation as well as during.

If you buy insurance early enough and something goes wrong, meaning you can’t travel, you can claim the cost of your vacation (less the policy deductible – the agreed amount you pay for each claim. ). This includes the full cost of the vacation itself – flights and accommodation – as well as any pre-booked excursions or other extras, such as car rental.

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What risks of cancellation will my insurance cover?

Typically, travel insurance policies cover vacation cancellation as standard. However, the accepted reasons for cancellation will be different. They may include:

  • Redundancy: Generally, you will be covered if you, someone you are traveling with, or your spouse, civil partner or common-law partner receive a termination notice after you have booked your trip or purchased your policy – whichever is later.
  • Jury service: you can recover the costs if the jury service cannot be postponed.
  • Member of the armed forces, police, ambulances, firefighters or nursing services: you will receive payment if you or someone you are traveling with has their statutory leave of absence canceled due to an unforeseen emergency or an outing abroad at the time of your trip.
  • Damage to home or business: you or the person you are traveling with must have been ordered to stay at home (within seven days of the date of your departure) by a competent authority due to serious damage to your / their home or your / their home or place of work due to severe fire, explosion, storm, flood, subsidence or burglary.
  • Stolen passport or visa: As an example of the coverage conditions you might meet, Admiral states that your passport or visa must have been stolen in a burglary at your home within seven days before your trip departs. You will only be covered if you cannot get a replacement on time.
  • Pregnancy: an example of insurer wording NOW indicates that you will be covered if you become pregnant after purchasing your policy or booking your trip (whichever is later) and you will have more than twenty-six weeks at the start or during your vacation or if you are medically unfit to travel.
  • Mental illness: TravelTime insurer covers you if you can provide a medical certificate proving you suffer from anxiety, depression or any other type of mental or nervous disorder
  • Death, bodily injury or illness: the emergency must be certified by a physician. You will be covered if any of these emergencies apply to you, a relative, a coworker, someone you are traveling with, or a friend you have agreed to stay with during your vacation.

Will my insurance cover the risks of Covid cancellation?

Almost all travel insurance policies cover cancellation for risks associated with Covid, such as getting sick with the virus before your booked departure.

In fact, financial reporting firm Defaqto found that 95% of policies offer coverage for this circumstance, up from 72% at the start of 2021.

Plus, policies can even cover cancellation if a member of your family, someone you planned to go on vacation with, or the person you were going to stay with contracts the virus.

Your policy may also cover you if you have been asked to self-isolate. Defaqto research shows that 48% will pay in this situation.

A limited number of insurers will offer coverage for cancellations caused by a change in the Foreign, Commonwealth and Development Office (FCDO) travel advice – 3% according to Defaqto.

These include:

  • Avanti Travel Insurance
  • Churchill
  • Direct line

However, the policies will not cover cancellation if you travel during a lockdown. A number of other exclusions and limitations may apply, so read your policy details carefully.

Is there a difference between single trip policies and annual policies?

Buying an annual travel insurance policy is usually the best bet if you plan to take more than two vacations in the span of 12 months, as it is cheaper than covering a one-time trip, called a single trip. Assurance.

Unlike a single travel insurance policy, where cancellation coverage begins at the time of purchase, cancellation coverage for annual multi-trip insurance begins on the policy start date of your choice, it is therefore important that you choose to have your coverage begin immediately.

What if I don’t buy my insurance right away?

It is always worth purchasing travel insurance even if you forget to do so at the time of booking. Your cancellation coverage will begin after you purchase your policy or on the start date of your chosen policy (with an annual policy).

In addition to the cancellation guarantee, you will generally benefit from the following guarantees as standard:

  • Medical and repatriation to cover medical costs and bring you home (repatriation) if you fall ill during your absence
  • Reduction in case an emergency such as illness, bereavement or dismissal requires you to cut your vacation short
  • Luggage and personal effects in the event of damage, loss or theft
  • Liability coverage in case you injure someone or their property while you are away.

How can I purchase travel insurance?

The easiest way to purchase travel insurance is to use a comparison site. Our travel insurance comparison tool allows you to perform quotes to find the best policies for you, based on factors such as policy price, levels of coverage and amount of deductible.
You can also review our top rated policies.

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