basic travel insurance

All about EHIC cards

If you are taking a short break, be sure to buy appropriate travel insurance, if you want to avoid your dream weekend turning into a nightmare.

The European Health Insurance Card (EHIC) which millions of Brits carry when travelling to Europe each year, is a useful back stop for emergency cover, but it should not be regarded as a replacement for full travel insurance.

The EHIC, introduced in January 2006, entitles EU residents to emergency medical treatment in the event of accident or illness when travelling within the European Economic Area (EU countries, as well as Iceland, Liechtenstein and Norway).

But the service covered by EHIC will only match the standard of cover provided to citizens of the country you are travelling in. It may not be equivalent to that provided by the NHS, so a contribution to the cost of your treatment may be necessary.

For instance, the EHIC card will not cover repatriation to the UK, whereas comprehensive travel cover will pay for an air ambulance for emergencies (typically up to £5-£10 million), repatriation to the UK for less serious cases, or for a relative or friend to fly out to be with you during your recovery, if it is decided not to repatriate you.

Some insurers (including Churchill, Direct Travel, Halifax, Marks & Spencer, Post Office, Saga and Sainsbury’s Bank) will waive the excess on any medical expenses claim if you have used an EHIC card while abroad, saving you anything from £35 to £100.

Why stand alone travel insurance is essential

Travel insurance will cover you for everything from cancellations costs, to loss of personal belongings, as well as legal and medical bills.

Cover for the cost of your holiday should you have to cancel a trip due to illness or family reasons is typically up to £3,000, while baggage cover for the replacement of ‘essential belongings’ should your baggage be delayed on the outward journey ranges from around £100 to £450 (Direct Travel Premier Plus).

But make sure you don’t over insure. If you already have cover for belongings ‘away from home’ under a home contents policy, you can ask your travel insurer to deduct this item from your policy and give you a discount off the full premium.

What it covers

Cover limits for lost or stolen baggage is typically around £1,500-£2,500, but with a limit of around £300 for each individual item. So expensive items may not be fully covered. Insurance for money taken on holiday (including travellers’ cheques) is typically capped at £500.

Other useful features of travel policies include personal accident cover (providing a fixed payout should you die or become permanently disabled), missed departure (for the costs of making new travel arrangements if you miss your departure through circumstances beyond your control), travel delay (only payable after more than 12 hours’ delay), personal liability (typically up to £2 million) and legal expenses (up to £50,000).

The latter two features are crucial, in the event that you cause injury or death to someone and become embroiled in expensive litigation.

While cover for short duration trips can be obtained for as little as £10-£50 per adult for a week in Europe, frequent travellers will normally find an annual policy (typically £60-£100 for a couple) far more cost effective.

Travel policies vary dramatically, so it is essential that you buy appropriate insurance which matches the value of your belongings, the cost of your holiday and the type of activity you will be engaging in. Above all, remember that it is more important to buy appropriate cover, than simply plumping for the cheapest.

Source for companies quoted: Defaqto Aequos Online