Bargain annual travel insurance

Each year thousands of school leavers take to the skies in a bid for freedom from their parents and their old school. Their destination, any far flung country with the opportunity of excitement. It can be a worrying time for parents and children too, but with preparation you will be in a far better position to tackle the multitude of obstacles that you will encounter. If you believe that you are going to waltz through the year with no difficulty at all, think again!

One of the key elements to good preparation is insurance. In simplistic terms insurance is something you pay for to help you pay for things should anything go wrong. Travel insurance therefore covers you for when things go wrong overseas.

Understandably, when you plan a backpacking adventure, the first thing you are likely to do is plan where to go, where to stay, how good the nightlife will be, and how long you will get to stay there. Very few people think about what can happen while on a holiday, which is natural as you are focused on enjoyment rather than the practicalities. Hopefully it will be an adventure, but you will visit strange places, and may not even speak the language.

To help you plan for a safe and enjoyable journey, Insurancewide have put together some top tips for travel insurance.

Some Key Reasons for Insurance

1. Medical and Legal Bills: If you travel to a global destination (outside the EU) legal and medical bills become more significant. In the United States and Canada there is a legal and medical culture with far greater reaching financial implication than in Europe. If you were to be in a hospital for a length of time, the bill could run into hundreds of thousands of dollars. Unfortunately with no NHS, you would be expected to pick up the bill.

A standard insurance policy for Europe will provide up to �1 million in medical aid, and �2 million in the US and Canada. If you are staying in the EU, get an E111 form from your local Post Office; it will entitle you to some free treatment in Europe.

2. Cancellation and Curtailment: Cancellation is one of the most popular reasons for claims against travel insurers. It is vital that you start the policy a few weeks before you actually depart for your holiday, otherwise a claim would not be possible.

3. Thefts, Mugging and Luggage: Unfortunately, the number of attacks on holidaymakers is on the increase due to the rich pickings available. If you are unfortunate enough to be a victim of a theft, report it to the police who will be able to provide a statement to show your insurer when you make the claim.

If you lose your suitcase on route to your destination, or are informed that your cases have been sent to another airport buy suitable essential replacements. Any decent insurer will allow you to claim for these items when you return from your holiday.

4. Terrorism: The threat of terrorism is still at the forefront of traveller's minds. Insurance against terrorism has never really been offered as a product. After the World Trade Center activity and the Bali bombing insurers are even more careful about the level of cover they offer and what they will pay out for. Insurers will not provide insurance for new customers or existing policyholder if they travel to a country where the Foreign and Commonwealth Office (FCO) has advised against travel.

5 World Health: The SARS (Severe Acute Respiratory Syndrome) outbreak has caused severe disruption for travellers and authorities over the globe. If your holiday has been cancelled you should contact your tour operator or airline for a refund. Like with terrorism insurers will not provide insurance for new customers or existing policyholder if they travel to a country where the Foreign and Commonwealth Office (FCO) has advised against travel.

For advice on countries not to travel to and for global information prior to travel visit www.fco.gov.uk/travel

Top Tips for Buying your Insurance

1. Search the Market: Don't let travel companies sell you're their insurance policies. Recent research by Which? Consumer Magazine has shown that travel agents do tend to offer a poor deal on insurance. Consumers are also being charged on their UK postcode rather than on their destination and the type of holiday they are going on.

2. Avoid Sales Pressure The Internet allows consumers to search many websites and buy without sales pressure. With the number of companies offering insurance, the market will be very price diverse, allowing you to pick up the best deal for your requirements.

3. Policy Type: Before you buy a policy consider how many times you are likely to travel in a year. If you do take more than one holiday a year it is prudent to buy an annual multi-trip policy. Although the total cost is higher, spread across the number of days you actually spend on holiday, an annual multi-trip is far cheaper. For example an annual multi-trip policy should also cover Winter Sports activity as well as your standard holiday.

4. Be Honest: If you have a medical history it is important that you tell the insurer. If you fall ill or die as a result of an existing problem while on holiday you may invalidate your policy.

5. Check Policy Documentation: As highlighted in the point covering hazardous activity, always check the policy details for aspects like hazardous activity, terrorism, threat of war, medical issues, and personal liability.

6. Compare the Benefits Some of the benefits of an Insurancewide Back Packers travel insurance policy include: