How do I know if I have enough cover for my holiday?

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by: Sarah Maple
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Word Count: 501
Date: Mon, 29 Mar 2010 Time: 8:51 AM
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QUESTION: How much travel insurance do I need to take out for my holiday or trip?

ANSWER: Deciding how much travel insurance you need for your holiday really depends on your circumstances however there are some guidelines you should follow. We'll focus on the key elements of cover that most people think of when purchasing travel insurance.

These are:

Medical expenses

Baggage cover

Single item limits

Cancellation cover
Passport cover

It is recommended that you have minimum levels of cover before you travel. This will vary slightly depending on where the information is coming from, but as a general rule you should have £5 million worth of medical cover, £2,000 of baggage cover, £3,000 cancellation cover and around £100 of passport cover.

These are just guidelines and anyone travelling should look at their own circumstances to estimate how much cover they think they will need. For instance, if you're going on a short trip and the amount of baggage you take with you is small, the cost of replacing your baggage if it was lost may differ to say if it was lost on a long-haul trip, where you may be travelling for a longer period.

You need to be aware that insurance companies usually have a "single item limit" between £200 and £500 which means you can't claim for more than this on any one item you have with you. Therefore, you may want to consider leaving those £1,000 pair of laptops at home, but if you have to take them, don't fret. Check your home insurance policy and see if these items are covered under that if you have one or see if you can add items to your home insurance policy under the section of "items away from the home".

Cancellation cover works in the same way. If your holiday only costs £2,000, look for a policy that covers you for £2,000 (less any excess). Looking for a policy for £3,000 doesn't mean if you have to cancel you'd get the £3,000 (we can all wish though).

And finally, passport cover is also important, as losing your passport isn't a nice experience and can cause immigration issues even if you're a UK citizen returning home to the UK. Getting emergency passports are costly, so this is a handy benefit to look out for in a travel insurance policy.

All in all, it's worth bearing in mind that the more cover you have, the higher the travel insurance premium will be. Don't over insure yourself, because you can't claim for more than the baggage or trip is worth and keep costs down by finding sensible insurance cover that meets all your needs.

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To read more about travel insurance issues, please visit http://www.confused.com/travel-insurance