Having worked in the Travel Insurance industry for many years I have often heard the phrase "that's more than my holiday" when I tell someone the price of their insurance. There seems to be is a general misunderstanding of why Insurance is so important. A standard travel insurance policy would include cover for cancellation, emergency medical cover, hospital benefit, personal accident, baggage, money, delayed departure, missed departure and legal expenses. The two most commonly used sections of a travel insurance policy are cancellation/curtailment cover and emergency medical expenses cover.
Let's take a look at these policy benefits individually to see what they actually cover.
In most cases you plan and book your holiday in advance, to give you something to look forward to! At the time of booking your trip you would normally purchase your travel insurance as this would provide cancellation cover if you were unable to travel due to a covered event which would normally be if you where ill and unable to travel, had a accident or passed away before your trip, the insurance would then reimburse you for the cost of the holiday up to the policy limit. Do consider that you may have booked your holiday some time in advance and cover would apply from the time of taking out your policy.
This is the most important reason why you need your travel insurance. Emergency medical expenses is usually the biggest and most significant part of a travel insurance policy as it will cover for any emergency medical treatment required whilst you are on your holiday. It's very difficult for UK residents to envisage how much medical treatment is abroad as we are fortunate to have the NHS and never have to think about how much it costs to treat a broken leg or a heart attack. To give you an indication here are some estimates of the cost of treatment abroad which have been provided by our claims assistance company.
1 night stay on a Spanish/Turkish hospital ward = £600
1 night stay on a Spanish/Turkey ICU = £1500
Air Ambulance from Spain = £20,000+
Please consider if you are travelling further afield like the USA the costs will be
1 night stay on an ICU in USA = £5000+
Heart bypass in USA = £40,000+
Heart bypass then Air Ambulance from USA = £70,000+
As you can see there could be some serious cost's involved. You need to bear in mind, that 99% of people will pay their premium for their travel insurance and have a great holiday and not require their insurance, however no-one wants to be in the 1% that has a medical emergency, which results in the claim of more than £100, 000, you would then be grateful for paying your insurance premium