Air Passenger Duty rise highlights gap in travel insurance cover

Peter Hayman, Director of P J Hayman Travel Insurance Specialists, comments on the increase in Air Passenger Duty, how this affects claims, and how it may result in more uninsured travellers.
“The increase in Air Passenger Duty (APD) on the 1st November highlights a problem which many travellers may not be aware of until they have to make a claim. APD should be recoverable from the airline as it is only payable if the traveller departs. Unfortunately, many airlines, particularly the budget ones, charge an administration fee which can be more than the APD itself.

“The cancellation section of a travel insurance policy typically provides cover for travel costs that are "irrecoverable" or “not recoverable elsewhere”. Also, some policies are very explicit and make airport departure duty a specific exclusion. At the claims stage the attitude of Insurers varies. Some will adopt a pragmatic approach with the customer being able to recover the fee charged by the airline to obtain the APD refund whereas others will not.

“We believe there should be a consistent approach by the travel insurance industry to deal with genuine cases where customers have incurred costs which are not recoverable. However, most importantly, airlines should play fair and hand back the tax which is not payable to the Government until people fly.”

Rise in APD could increase the number of people not taking Insurance
“Figures published by ABTA and elsewhere show an increasing percentage of people not taking travel insurance. It is estimated that 20-25% of people are now electing not to purchase cover. The increase in APD will make it even more expensive to travel, particularly for long haul destinations and there is therefore a risk of the number of uninsured travellers increasing. It is ironic that the Foreign & Commonwealth Office is promoting the need for people to take out insurance through it’s ‘Know Before You Go’ campaign and yet the Treasury, by imposing increases elsewhere, including the hike in Insurance Premium Tax, is making it more likely that people will not buy cover.

“Not taking travel insurance is a false economy with claims costs considerable even for short haul destinations such as Spain and Turkey.”

Holidaymakers 'need to protect possessions'

New research shows that holidaymakers planning to take flights to South Africa and other major destinations should look after their possessions while overseas.

Sainsbury's Travel Insurance claims that Brits have had up to £1.7 billion of possessions stolen while overseas over the past five years.

The research estimated that 5.1 million British adults were the victims of theft – with the average loss equalling £326 per person.

Men are more likely to be victims of theft than women, with 13 per cent of males having items stolen while on a foreign holiday, compared to nine per cent of females.

Scott Gorman, Sainsbury's Travel Insurance manager, said: "It's easy to be engrossed in your surroundings when in a different country and when you're feeling relaxed you can be easily distracted."

He added it is vital for holidaymakers to remain vigilant, especially when in traditional and crowded tourist areas.

Holidayextras.com recently warned travellers to ensure they keep their passport in a safe place otherwise they could face added costs and hassle if it is lost or stolen.

Travel insurance policyholders 'should begin considering their 2011 holiday'

Booking in advance is a great way to secure an appropriate deal on a summer 2011 holiday, according to an expert.

Clare Banham, spokeswoman for ABTA - The Travel Association, said making arrangements now can help families secure the best accommodation for their needs, as well as financial incentives such as free child places.

And travel insurance policyholders unsure of where to go should not dismiss the countries they have already seen in the past, as getting to know an area - as well as learning its customs and making friends - can contribute to a positive experience for everyone involved.

"Human nature is that you will fall in love with a destination ... there's a whole variety of reasons why you go back again and again," Ms Banham explained.

What's more, research published by Thomson Al Fresco has shown that the average family will arrive at the same destination five times and one in six will do so ten times or more.

Travel insurance customers may wish to improve fitness levels before going on a ski trip

Arranging a ski trip would usually involve many factors like ensuring a sufficient travel insurance policy is in place and purchasing suitable equipment - but one expert has suggested a visit to the gym might also be a good idea.

Dr Bernhard Metzler, associate professor of cardiology at the Medical University of Innsbruck, told the Daily Mail that the majority of people who suffer a heart attack on the slopes do so because they are not physically prepared for the exertion.

He said: "Sudden cardiac death accounts for a staggering 40 per cent of the total fatalities amongst winter sports tourists in the Austrian Alps and, of these, heart attacks are the leading cause."

Fitness levels, combined with high altitude and plummeting temperatures, were also cited as reasons why skiers may be more susceptible.

People who are interested in following the expert's advice could also do well to take a fish oil supplement, as research published in the European Journal of Cardiovascular Medicine recently stated the substance can help prevent heart failure, the Daily Mail has stated.

Travel insurance policyholders 'should pack sunscreen' before heading abroad

Holidaymakers jetting off to sunnier climes this year should remember to pack sunscreen to protect them against burning and skin cancer.

This is according to Nina Goad, spokeswoman for the British Association of Dermatologists, who explained how travel insurance customers should "never allow [their] skin to burn".

Wearing a wide-brimmed hat, seeking shade in the hottest hours of the day and applying a broad spectrum sunscreen at regular intervals is also recommended.

"Sunburn is the skin's reaction to being damaged by UV rays," Ms Goad remarked.

Indeed, even those whose destination is cooler should check their body for moles or changing freckles as some types of cancer can take years to develop, she concluded.

Ms Goad's comments came in response to figures released by Cancer Research UK, which stated that 46 per cent of Brits have been sunburnt this year - some admitted they did so on purpose with a view to improving their tan.

Kenya Airways offers travel insurance on online portal

Kenya Airways has deepened its presence online by offering its customers a chance to buy travel insurance using its portal.

The move will hand the airline an additional revenue stream as it moves to conform with global trends that have seen the travel industry push more services onto the internet.

“The offer of travel insurance at the time of the air ticket purchase not only provides a benefit to the customer, it also represents an attractive revenue stream for the airline,” said Bob Gallagher, chief marketing officer at Travel Guard Worldwide.

Travel Guard – a travel insurance subsidiary of Chartis announced that it had signed a pact with Amadeus – a leading travel technology provider for distribution of travel insurance products to customers.

Airlines such as Kenya Airways, Etihad Airways and Hong Kong Airlines will use Amadeus technology to sell travel insurance products directly to end-customers through their direct booking channels.

Amadeus is a leading provider of travel content and technology in the world and processed more than 670 million billable travel transactions last year.

The sector is currently growing as more countries require travellers to invest in travel insurance and as more consumers seek global solutions.

For the online traveller, booking travel insurance through Amadeus e-Retail presents a faster solution, and reduces the number of vendors they have to deal with.

Travel Guard said the booking process would work by pulling relevant passenger and trip details from the airline’s data, proposing the appropriate travel insurance policy and calculates the insurance premium value.

The combination of Amadeus’ technological expertise, Travel Guard’s comprehensive portfolio of travel insurance presents a winning value proposition for Kenya Airways by way of accessibility to the best travel insurance.

Register for EHIC, travel insurance customers warned

Buying a travel insurance policy before jetting off on holiday is not the only thing that should be on a tourist's to-do list - registering for a European Health Insurance Card (EHIC) is necessary too.

A contributor to north-east newspaper, the Journal Live, stated that many people forget this part of their preparations and could miss out on vital access to medical resources while abroad.

The writer said: "The EHIC means you will receive the same medical treatment that a national of the country you are visiting would receive."

Visits to the doctor or receiving a prescription may be covered by the scheme in certain countries, but it would be wise to check local information to see what services can be accessed in different countries.

However, the EHIC does not replace the need for a travel insurance policy which will help recover costs if luggage is lost or stolen, a trip is cancelled or an incident requiring personal liability, the expert continues.

Indeed, taking out such a policy may not be as expensive as some consumers expect - Kate Saines, writing for MyFinances.co.uk, recently stated that "there is really little excuse to go uncovered when taking a trip abroad".

Good insurance is crucial when travelling

I get a lot of questions about travel-related insurance. Most of the time, these questions are about pre-existing conditions, and whether or not an individual qualifies for coverage while they are away.

However, lately I have had inquiries that come from a different perspective. And my responses usually reference what is clearly not covered, according to various insurance documents.

Given the legalese that is built into the actual policies, sometimes not even another lawyer is willing to give an opinion with absolute certainty. So how are we, as ordinary readers, supposed to come to a conclusion and feel secure enough in how we have defined specific phrases?

On the other hand, there are some clear no-no's.

QUESTION: I understand there is a new entertainment option in Florida that includes driving a NASCAR car around a regulation oval track several times. I assume they take all kinds of precautions, but should I be hurt in an accident while participating in this activity, would I still have full coverage?

ANSWER: Not only would you not have full coverage, it's unlikely you would have any at all. While you might try to launch an argument vis-a-vis the actual wording of the policy, one company puts it succinctly: "Your participation in a motorized race or motorized speed contest, including training or practice for the same, is not covered."

You might want to shape a different argument, but I'm betting you'd lose.

Likewise will individuals who think rock- or mountain-climbing is a fun and interesting challenge.

If you're participating in a professional sport, you'd better be sure your sports body has sufficient coverage because your travel-insurance policy likely excludes such activities as well.

A point I found most noteworthy relates to the insurance companies' recommendation that you be transported home for medical attention.

If something happens to you on your trip which you at first find serious, but think you'll complete the vacation in spite of the insurance company's request for you to return home at their expense, you are strictly on your own. Should your condition worsen, you can't go back to them and try to reinstate the coverage. Once you refuse to be returned, it's gone.

While I have isolated a few areas where travellers would not be covered, for the nth time I repeat: To leave home without travel insurance is sheer folly. There are many stories I could relate where the decision to decline resulted in several thousand dollars of out-of-pocket expenditures.

QUESTION: I want to rent a car in Europe for two weeks in September. When I checked with a number of sources, including CAA, my travel agent, and my credit card's help centre, about third-party coverage for damage done to another person's car or liability for injuring a third party, I struck out.

They all have varying degrees of coverage available for damage to my rental, but not necessarily third party liability.

What is your understanding about this issue?

ANSWER: This too is a very complicated issue. I talked with John McClellan, owner of Discount Car and Truck Rental on Gertrude. Most car-rental companies, in your initial contract, supply only the very basic coverage on their cars, often as low as required by the state or country involved. Also, third-party liability in many out-of-province jurisdictions is not included if the company can get away with not providing it.

If you are renting your vehicle in other parts of Canada or the United States, he recommends travellers purchase coverage from our own MPI, which launched a program a few years ago which does, in fact, provide fairly substantial third-party liability coverage.

We often count on our credit-card coverage to protect us, but most often third-party liability is also limited or not covered. Damages to your car rental will be taken care of, but not necessarily damage to the other car involved in the accident. You need to examine all the details in your credit-card agreement.

The concept of 'no fault' does not exist in other destinations, as we are seeing with Canadians caught in the crossfire of Cuban policy and legislation around vehicle accidents.

There, you have to prove your innocence, not an easy thing to do with language and cultural barriers in your way.

No one likes to pay the extra costs related to automobile rentals when we travel, but the minimal coverage provided by your car-rental company will not likely go far in the event of an accident. Car-rental companies make a good part of their revenues on the supplemental coverage offered.

We may not be happy paying but, in the end, the investment is small compared to the risk of not having that protection if we get into an accident.

McClellan also added some additional good advice when renting overseas. You should not likely rent from local brands with limited storefront locations, but rather from recognized, worldwide names that have universal criteria for insurance coverage at their franchises.

QUESTION: I understand that insurance companies were not providing coverage against trip disruption relating to volcanic ash if going to Europe. Is that correct?

ANSWER: That is correct. They were not. Three months after the volcano erupted in Iceland, you still could not get full insurance coverage against a repeat occurrence. For that period of time, most insurance companies refused coverage in the same way they looked upon pre-existing conditions.

But two days from today, on August 16, at least one of the insurers will be reinstating that coverage. In a memo sent out just a couple of weeks ago, RBC said clients who purchase travel-insurance coverage with trip cancellation/interruption benefits and have a departure/return date on or after August 16 will be considered for coverage under their policy, provided no further volcanic eruptions occur before August 16 and all other policy terms and conditions are met.

Policy for Travel Insurance

A spokesman for Axa, one of the country's largest travel insurers, says: 'If a policyholder has fallen ill with a disease or illness which they should have been inoculated against, then they would not be covered under their policy for any medication, treatment or repatriation.'

And a spokesman for Aviva, another major insurance provider, says: 'Where inoculations are needed, and you have not fol lowed advice, we would question why and if there was no medical reason for not complying, then this could mean your medical claim is not paid.' If you have been sensible and followed advice on the correct inoculations and medicines, what should you do if you fall ill? If possible, phone your insurer before you receive treatment.

They use medical assistance companies with 24-hour helplines who will deal with your call. While the assistance company will usually deal with the hospital direct, hang on to any receipts in case you need them to support your claim.

Travellers to Europe should make sure they have an up-to-date European Health Insurance Card (EHIC); they last for five years. This should cover basic hospital bills in many European countries.

But the card doesn't cover you for repatriation: that is covered by insurance. For a full guide on how the EHIC works visit: thisis money.co.uk/ehic. A spokesman for insurer Esure says: 'A valid EHIC may well pick up hospital cover, but not necessarily an emergency doctor, so you should keep as much evidence of everything as you can.

'It is best not to wait until you are back in the UK, as the insurer can get good local help to you via their existing contacts.

'The only time when you don't have to do this is if the total cost of treatment is likely to be under £500, but here, keep receipts, letters and prescriptions to support your claim.'

If you are ill before you go on holiday, you might also need to let your travel insurer know.

For example, i f you are diagnosed with an illness or suffer an injury which means your doctor tells you not to travel, you should be able to claim under the cancellation clause of your policy - although if there is an excess on the policy, it means you won't get all your money back.

If you are ill - but not so bad that a doctor says you are unfit to travel - you can't claim under the cancellation clause. However, if your illness worsens while you are away, you should be covered for medical expenses incurred.

If you have a condition which means you are on a waiting list for treatment when you buy your policy, you won't be covered for that condition while away.

But if you are put on the waiting list after you have bought the policy, you should be covered.

Travel insurance: will your policy cover you if you fall ill on holiday this summer?

Holiday season is in full swing and while most trips pass without incident, thousands of Britons face falling ill while away.

And illness abroad doesn't just mean a touch of sangria-induced stomach problems. You, like celebrity Cheryl Cole - who is now on the mend after contracting malaria on holiday in tanzania - could pick up a nasty tropical disease. Most holidaymakers hope travel insurance will cover them.

Insurers paid out £274million for emergency medical treatment for British travellers abroad last year: £5.3million a week. But watch out - if you haven't taken the correct medicines or had the advised inoculations, your insurer might not pay up if you get a disease you could have been protected from.

Travel insurance neglected by Brits

Travel Insurance is being neglected by holidaymakers despite research showing that luggage is worth, on average, more than £3,000.

A new study has shown that a fifth of British holidaymakers do not take out travel insurance to cover any items that may be lost or stolen.

And with the average case containing thousands of pound worth of shoes, clothes, electrical equipment and cosmetics these travellers are leaving themselves at risk of losing huge amounts of cash.

The poll, carried out by insurer Shela’s Wheels, shows the average traveller takes £325.09 of clothes, £119.40 of shoes, flip-flops and wedges, and £75.73 of accessories such as scarves, sarongs and hats.

In addition, holidaymakers pack entertainment such as mp3 players, CD players, laptops, and mobile phones, a collective total of £1,207.61.

Jacky Brown at Sheilas’ Wheels travel insurance, said: “The majority of folk don’t give a second thought to the value of the goods they are packing into their suitcase and hand luggage, but in reality the contents are worth thousands.

“And when it comes to the crunch, most holidaymakers don’t even use half of the items they take with them.

“Brits need to learn to pack light – not only would this reduce any implications of excess baggage fees, but it would also soften the blow if the luggage did go missing.”

“For peace of mind, it’s vital for holidaymakers to make sure they get a quote, choose an international travel insurance package and double check what they are covered for, as while you can’t plan for every eventuality, you can make sure you have done everything you can before leaving the UK.”

Big hike in travel insurance from age 65

Older travellers still face sharp increases in travel insurance premiums when they turn 65, research has revealed.

When pensioners take out insurance to travel in Europe there is a 174% increase and 131% increase for worldwide destinations, compared to those aged 64.


Travel is a huge priority for retirees and people 65 or over, but those seeking to enjoy their pension years should brace themselved for a shock at the cost of their annual multi-trip travel insurance policies when they turn 65.


The research conducted by moneysupermarket.com also shows that there are further considerable hikes as people get older.


For instance, when you turn from 65 to 66 years of age there is another average increase of 46% and when you turn 71 there is once again a further 20% hike.


Bob Atkinson, travel expert at moneysupermarket.com, said: 'Anyone who is planning to spend their retirement seeing the world should prepare themselves for the shock of being penalised for turning 65, and this is repeated when you turn 66 and then 70.

'My advice to travellers who find themselves in this situation is to shop around as the difference in premium can vary considerably between providers.

'You should always take out travel insurance no matter how high the premium may seem, as the cost of medical treatment or repatriation would be considerably higher and would leave you with some expensive bills to pay.'


People in the UK are living longer and many pensioners now have far more disposable incomes in which to travel with. The increased levels of price for travel insurance when you hit retirement age doesn't seem to fairly reflect the risk people over 65 pose when going abroad.

Travel insurance hike points to taking career break

Older travellers are facing steeper travel insurance premiums when they turn 65, possibly encouraging more people to take a career break earlier in life.

Research by moneysupermarket.com found that when pensioners take out insurance to travel in Europe there is a 174 per cent increase, with a 134 per cent increase for worldwide destinations, compared to those who are aged 64.

The data also showed that when a person turns from 65 to 66 years of age there is another average increase of 46 per cent, making a career break more attractive earlier in life.

Bob Atkinson, travel expert at moneysupermarket.com, advised: "You should always take out travel insurance no matter how high the premium may seem, as the cost of medical treatment or repatriation would be considerably higher and would leave you with some expensive bills to pay."

People taking gap years or career breaks in the coming weeks need to make sure that they check their travel insurance in light of the planned British Airways strikes, according to Gocompare.

Does your travel insurance cover British Airways strikes?

Passengers of British Airways who had plans to fly during the strike dates should check their travel insurance to see if they are covered for delay and abandonment cover, says Gocompare.

Some travel insurance policies will pay out if passengers are left at departures when British Airways cabin crew go on strike between 20 and 31 March, which is likely to disrupt flights for the entire period and also a few days following to deal with the backlog of cancelled and delayed flights.

When travellers could be on the beach, the slopes, or taking a relaxing city break, a travel insurance payout will not completely ease the disappointment of a cancelled or delayed trip, but Gocompare suggests that at least the cost of the holiday could be recouped.

However, those passengers who took out travel insurance retrospectively on 12 March or after, the day when the strikes were announced, will not be covered for delayed or cancelled flights, the comparison website warns.

Passengers are afforded compensation by airlines under an EU travel directive in certain circumstances, but travel insurance can offer additional cover for delays.

Airlines must provide passengers who are delayed more than two hours with a meal and refreshments, access to communications and, if appropriate, accommodation. A delay of more than five hours will require the airline to fully refund the cost of the ticket.

Some travel insurance policies also provide compensation for delays, but this will vary from one provider to another, so travellers should compare travel insurance to get the best value for money, Gocompare urges.

Mark Greening, head of product partnerships at Gocompare.com, said: "Yet again it will be innocent passengers who will be most disrupted when British Airways staff take industrial action. Unfortunately travel insurance can't make your flight take off on time but many policies do offer useful cover which will help you meet the unexpected extra cost of food and drink whilst you're hanging around the departure lounge.

"In the worst case you may decide to abandon your holiday altogether and travel cover can give you that protection but it's always worth checking the wording of your policy to make sure under what circumstances you can reclaim the cost of your trip."

Mr Greening urges all passengers to check the terms of their travel insurance and get official confirmation of the length and reason of the a delay which would result in a claim being successfully made.

Sharp increase in annual travel insurance for over 65s

A new report has revealed that people over the age of 65 are increasingly inclined to travel abroad.

Age Concern Enterprises said that annual worldwide travel insurance take-up increased by 41 per cent last year, which demonstrates the willingness of older people to spend a longer time away from home.

In addition, the number requesting winter sports cover also climbed by 20 per cent as an increasing amount of older people plan winter adventure holidays.

The report has also revealed that older Brits are becoming wiser in finding the best travel deals.

It is claimed that over-65s are using the internet more often to unearth the best travel deals and the cheapest prices.

Joe Young from Age Concern Insurance Services said that travelling allows people to find joy and excitement during their retirement.

He added: "Our Travel Insurance was specifically designed with the mature traveller in mind, as appropriate products for this market were not previously available."

The Post Office recently (24th Janaury) advised people attending the Winter Olympics to check that their insurance policy covers them for travel in Canada.

Don't skimp on travel insurance

Holidaymakers are being reminded of the importance of suitable travel insurance for any trip they make.

Trying to save money by not taking out travel insurance is a false economy, warns Sean Tipton, spokesperson at ABTA - The Travel Association.

He urges travellers to carefully consider travel insurance and ensure they take out cover that suits their needs.

Factors such as the excess payable, which medical expenses are covered and any exclusions should be checked.

"It's unlikely you are going to need [a multimillion-pound level of cover] but that's the point of insurance, you're covering yourself for the worst case scenario," he commented.

Its specialist insurance options ensure your exact needs are understood and all eventualities are covered.

'Carry cash and cards' may be good advice for travel insurance customers

Holidaymakers hoping to avoid making a travel insurance claim after a trip overseas may wish to heed the advice of the Post Office and carry both cash and cards.

Reliance on notes and coins could mean that, in the event of a theft or loss, all of the holiday budget has been wiped out and a travel insurance claim is imminent.

By spreading the risk, travellers are less likely to encounter such issues.

"When travelling abroad we would always recommend that travellers cover all eventualities by taking a mix of foreign currency together with plastic," said Sarah Munro, the Post Office's head of travel services.

She added that using a pre-paid card could further limit the emphasis on carrying notes around a foreign land.

More than half of Britons heading on holiday this year will take local currency, according to recent research by Santander, while just 15 per cent will opt for a debit card.

Travel with peace of mind is just what doctor ordered

IT IS one of the busiest times of year for holiday bookings but many Scots with pre-existing medical conditions will see their plans scuppered by problems obtaining travel insurance.

There are an estimated 1.8 million people in the UK living with some form of cancer, 2.5 million with heart disease and millions with other health issues. And with life expectancy rising and diagnostics improving, the number of people surviving serioADVERTISEMENTus illnesses is rising all the time.

For those with – or who have previously suffered from – serious health problems, finding affordable travel insurance is often a frustrating battle, even when they have long since had the all-clear.

Two in five people affected by cancer are quoted higher travel insurance premiums and about one in 13 travels without insurance at all, according to Macmillan Cancer Support. And 41 per cent of Genetic Interest Group members find it difficult to obtain travel insurance, the charity reported last year.

There are two main issues surrounding travel insurance for people with pre-existing conditions – getting any cover at all and, if cover is possible, securing an affordable deal.

Insurers deal with claims from people with pre-existing conditions in several ways. They may provide the normal level of cover but with a higher premium or excess; they may agree to some degree of insurance but with exclusions (such as claims relating to the condition or illness) and a higher premium; or they will refuse to insure you.

Some people no longer in treatment continue to be barred from cover – or are quoted higher premiums – as insurers consider those with pre-existing medical conditions as more likely to fall ill while on holiday, even if they have been given a doctor's green light.

Mike Hobday, head of campaigns at Macmillan, said there was little consistency in the way in which different insurers serve cancer patients.

"Not all insurers share the same business model and people go through a dreadful, frustrating process of phoning company after company and getting turned down," said Hobday. "You can't expect every company to serve everyone, but even people out of treatment can find it difficult to get cover."

Where insurers do agree to provide cover, it is often extortionate. There are companies that will provide more affordable cover, but getting a reasonable quote can be a lot of hard work. And while there are companies that specialise in high-risk customers – including Free Spirit, Travel Insured and Insure Pink – the cost is rarely competitive.

"We are staggered by the discrepancy in the quotes a person can get for the same trip from different insurers – up to tenfold in some cases," said Hobday.

This is partly because some mainstream insurers have failed to update their risk models in accordance with advances in the diagnosis and treatment of cancer and other critical conditions, he added. "Any price set 12 months ago is higher than it needs to be because companies are slow to recognise that cancer patients are not as risky as they had previously thought."

There are steps you can take find affordable travel insurance, although the extent and price of the cover will vary depending on the severity of your condition. The key is to shop around. "If you are a few years out of treatment you ought to get a decent price from a mainstream insurer," said Hobday. "If you are at an advanced stage of cancer you are going to pay more, but some companies specialise in high-risk consumers."

10 Things to Know About Travel Insurance

With travel insurance, as with life or a box of chocolates, you sometimes never know what you’re gonna get. But if you’re mindful of the basics, it can be a lot more predictable than you might think.

Know if you even need it.

Review your existing insurance and credit card benefits to see if they already cover emergency medical care, lost or delayed baggage, or trip interruption/cancellation. If you don’t already have such coverage for a trip and are wondering if you need it, “ask yourself what made you want to look into [insurance]” for that trip, says travel insurance agent Damian Tysdal of Travel Insurance Review. If a trip’s expensive, he says, “and you’re planning it eight months down the road, a lot of things can happen between now and then. And if it’s more than you feel comfortable losing, you should ensure that amount.”

Decide how much risk you’re comfortable taking as a traveler and break out the numbers, especially when considering trip cancellation coverage, says travel writer Lisa Oppenheimer. “To me, it's a math equation: how much does the policy cost and how much do you stand to get back vs. the cost of the trip?” she says. Booking her trip pieces separately, versus buying a package, helps her control her costs. “Flight tickets can generally be changed up to the day of departure, albeit with a change or rebooking free. Hotels usually will charge you one night's stay if you don't show up. I don't tend to book group tours. So, in my case, if I didn't go, the sum total of rebooking fees and penalties would still probably cost less than or maybe the same as the travel insurance I'm always offered.”

Know your seller.

You can buy travel insurance directly from an insurance agent or a traditional travel agent, through an online travel agency, airline, travel company, credit card company, or any number of other vendors. No one type of vendor is uniformly better than the other. As you shop around for coverage, note that the U.S. Travel Insurance Association (USTIA) ranks insurers in good standing. There are also several travel insurance comparison sites out there including SquareMouth and InsureMyTrip.com.

Be sure what you’re buying is actually insurance and not a waiver plan, urges travel insurance agent Steve Dasseos of travel insurance comparison site TripInsuranceStore.com. A pre-departure waiver plan from a travel supplier is “more a promise to pay in certain circumstances,” he says, but since it’s not actually insurance your state’s insurance department can’t help you if you have a dispute.

Also good to know is who “wrote” your insurance. Tysdal observes that many vendors will sell travel insurance as an extra revenue stream while not necessarily being the underwriter responsible for honoring any insurance claim you’d hope to file. If your seller didn’t write the policy, ask who did.

Know your limitations.

Your travel insurance policy ought to come with a certificate of insurance that lists the limitations and exclusions associated with your coverage, says USTIA president Mike Ambrose. “When you read through the limitations and exclusions you’ll get a good understanding of what they’ll cover and what they won’t,” he says. The certificate will get specific, too. Damage to natural teeth might be covered, damage to false teeth, maybe not. Or, scuba diving mishaps might be covered, but only up to a certain depth. And a favorite exclusion, Tysdal says, are any accidents caused by the insured being intoxicated.

Know the rest.

-If you get sick or hurt before or during your trip, get to a doctor, otherwise the insurance company won’t believe your story, Dasseos says. “Here’s how the policies typically read: ‘For trip cancellation benefits, an actual exam by a licensed physician must take place before the cancellation is made. For trip interruption benefits, this exam must take place during your trip.’”

-If you caught swine flu on a trip and a doctor confirmed you have it, it would fall under any medical coverage you bought. But if you back out of your trip because you’re afraid of getting H1N1 or, Dasseos suggests, “you get a new job and your boss won't let you have the time off,” that is not covered by trip cancellation insurance. If you want to be able to cancel your trip for any reason, you can buy a “Cancel for Any Reason” policy that’s generally 30-50% more expensive than other coverage, Ambrose says.

-Speaking of jobs, a relatively new provision in many policies is that you can cancel a trip without penalty if you’re fired. And in a sign of the times, some providers only require a year of continuous employment, versus three.

-If you have a pre-existing medical condition you may be able to waive your policy’s pre-existing medical condition exclusion if you buy your insurance within a certain period after paying for your trip, prove you’re “medically stable” when buy the coverage, and, in the case of many providers, insure the full cost and length of your trip, Dasseos says.

-Many claims don’t go through the first time because the insurance company is missing documentation, Ambrose says.”Make sure they have received the information and that that is all they need,” he says. Dasseos also urges keeping copies of any paperwork you submit.

-Lost or delayed baggage insurance covers the outbound leg of your journey but seldom pays off if your bag disappears on the way home, as the insurance company sees it as less of an inconvenience. This coverage is meant to replace “necessities you need on the trip that you now have to buy, Tysdal says, though Ambrose observes that some lost baggage policies have a provision that if your bag is lost on your homebound leg “you should go back to your common [insurance] carrier or your airline and if they didn’t make good on your loss, than the travel insurance policy should.”

-If anything you pack is worth more than either what a lost baggage policy will cover or exceeds the maximum liability an airline will assume for a lost bag -- usually $2,500 -- you can buy excess valuation coverage at the airline check-in counter, Dasseos says. It’s not insurance, “but it will increase the carrier’s potential liability,” he says, and most airlines will charge a buck per $100 of extra coverage, usually capping their maximum liability at five grand. Airlines may refuse to sell you the coverage if your items are too valuable or breakable, Dasseos adds. In which case, you might want to question why you’re flying with them at all.

Common airline mishaps and how insurance might help

Will travel insurance come to the rescue if something bad happens on your next airplane trip?

The answer, airfarewatchdog.com has found, is not always.

It’s a good idea to ask about some common (and not so common) travel snafu scenarios when you call to investigate different policies. By asking some specific questions, you'll make a better decision and won't be surprised if your air travel mishap falls outside the protective umbrella of your insurance.

That said, the majority of travel insurance claims are paid, and the most common reason is illness (either of the primary insured or a traveling companion or close relative).

But there are many other mishaps besides illness that trip up travelers, judging from the e-mail Airfarewatchdog.com has seen from woebegone airline passengers over the years. So we came up with eight things that can go bump in the flight, and then asked three of the major travel insurance agencies what they would do, if anything, to protect you.

How about if a tractor trailer rolls over just in front of you on your way to the airport, or you get a flat tire, causing you to miss your flight, and then on top of that, the airline tells you to buy a new last minute fare to Paris for $2,500? Stuff like this does happen.

Some insurance plans will only protect you if you buy a more expensive “cancel-for-any-reason” policy, but some of those require you to cancel at least 48 hours in advance, so no go. Travel insurer Travel Guard’s “platinum” policy includes coverage for such an accident scenario, but only if you provide a police report. Their less expensive policies might not protect you, however.

Here’s another one from our e-mail inbox: airport workers in Rome go on strike, so you’re out a $300 non-refundable airfare to Paris and have to take the train instead. Can you get reimbursed for both the airfare and train ticket?

CSA Travel Protection says yes to the train, but no to the airfare. Access America tells us that you’re covered only by a “cancel anytime” plan, which costs quite a bit more than regular insurance. Travel Guard, however, says you’d be covered as long as you bought the insurance before the airport workers voted to go on strike.

A third, all-too-common, scenario: your airline contacts you to say that they no longer fly to where you’re going and they’ll be happy to refund your money, but now flights to your destination on a competing airline cost an arm and a leg.

Sorry, none of the insurance companies we contacted will cover your added expenses.

And so it goes. Different insurers cover various travel snafus in different ways, and in general the more you pay for a policy, as in Travel Guard’s platinum product, the more protection you’re likely to get.

To see some other common and not so common travel mishaps (such as airline bankruptcy and missed connections) and how you might — or might not — be covered by competing travel insurers, consult our travel insurance snafu chart.

Again, whenever you buy insurance, don’t buy blindly: call the company’s 800 number to make sure you understand relevant provisos and exclusions, and read the contract’s fine print.

For example, most companies will fully cover you if you or a traveling companion becomes ill before departure, but they may not tell you that you must seek medical attention (a doctor’s office or emergency room visit) before canceling your trip.

And while most companies provide “cancellation” insurance, that doesn’t apply if you buy a biking trip through Provence and the tour company cancels the departure because not enough people sign up, leaving you with a useless $1,000 airfare.

The more you know before buying, the better prepared you’ll be to face whatever air travel throws at you.

Thai backpackers top insurance list

Backpackers taking trips to Thailand top the list of those making travel insurance claims, it has been revealed.

Claims following Thailand visits account for 22% of all backpackers' claims, according to InsureandGo.

The company added that British backpackers' claims amounted to more than £6 million a year, with personal luggage claims accounting for more than 40% of this total and medical expenses more than 33%.