Time to check your travel insurance options before taking off
The CSO’s household travel survey shows while most of the overseas trips taken by Irish residents are to the UK, EU and Europe, there has been a steady increase in the number of trips to Canada and the US. Picture: iStock
A recent release from the Central Statistics Office (CSO) reveals we have been travelling abroad in big numbers in the last 12 months. According to the Household Travel Survey, Irish people took 27% more international trips in the last three months of 2023 compared to the same months in 2022.
In total, t here were 12.6 million outbound overnight trips by Irish residents in 2023, during which we spent €12.9bn.
W hen you think of holidays, the last thing you think of is insurance. Holidays are all about forgetting about things like insurance. Like all insurance products of course, travel insurance buys you peace of mind. Holiday time is premium time. You should protect it, so you’re not frantic trying to deal with theft, loss, injury or illness without support.
According to Paul Walsh of Peopl Insurance, this significant surge in overseas travel puts insurance squarely in focus.
“Based on claims submitted by our own policyholders, a third of all claims relate to cancellations prior to travel due to illness. Very few of us expect things to go wrong when on holiday — but it happens more often than you might like to think.”
Mr Walsh said according to the company’s own data, the most common reason for a travel insurance claim is to cover the cost of medical expenses, while a third of claims relate to illness while abroad.
“So it is hugely important to have good medical cover on your travel insurance policy in case you become ill or injured when abroad. With some travel insurance policies, cover for medical expenses could be €10m or €20m.”
He pointed out too, that while the CSO’s household travel survey shows most of the overseas trips taken by Irish residents are to the UK, EU and Europe, there has been a steady increase in the number of trips to Canada and the US.
“Those embarking on long-haul trips such as this should be sure to have good travel cover for missed connecting flights as well as for any medical expenses incurred if they become sick or injured abroad.”
There’s also been an 11% increase in the number of domestic trips being taken by Irish holidaymakers. This suggests the Irish are still keen to holiday at home, though not to the same extent as abroad, where there was a much bigger increase in the number of trips taken.
There are a number of things you need to consider before choosing a travel insurance policy. The first of these is trip cancellation cover. You cannot assume policies with "trip cancellation" in the title cover you in the event of all cancellations.
“It’s important to assess what exactly this means on your policy. For example, cheap policies may not cover delayed and missed departures — which is a basic feature of standard policies .”
Watch out for the excess on the policy, which is the amount deducted from each claim prior to its being paid. The excess for lost baggage and the amount paid by the insurer may be very close in many cases, which means you get very little back in the event of a claim.
When it comes to medical cover, Mr Walsh recommends all policyholders make sure they know to what extent doctors and hospital fees will be covered.
Note too, that trips which involve potentially unsafe activities may not be covered under a general policy. If you’re planning an activity holiday and choose to buy a single policy, you will need to disclose any sports or adventure activities to the insurance provider. Always answer the questions honestly when completing an application for travel insurance. If you leave information out or are economical with the truth, chances are any subsequent claim will fail.
When it comes to belongings, the advice here is to make sure any expensive items you are taking with you — laptops, smartphones, jewellery — are covered for loss or theft. Again, don’t assume that every policy covers every object.
“These are the basics that every traveller needs to consider,” Mr Walsh said. “If your policy falls short of what you need, then it’s just money wasted. Some of the excesses alone on the cheapest policies can render them worthless in many cases.”
Some health insurers do provide travel insurance, though most health policies do not offer it as standard, so do not assume you’ve got it. Check first.
Even if you do have it, hospital
It is also important to remember that private health insurance will not cover extra hotel stays, meals or transport costs that could be incurred if you or a family member falls ill while abroad.
Competition and Consumer Protection Commission research shows one in 10 travellers felt they could make a claim but did not do so as they felt it would be too much hassle. However, the research shows 89% of those who did make a claim were successful, which shows it is worth putting the effort in.
Even though nobody does it, reading the small print is always a good idea, simply in order to know what is covered and what is not. Always check the policy wording, and if you just cannot bring yourself to read it, call the insurance provider and ask them to spell it out for you.
If you’re travelling within the European Economic Area (most of Europe) or Switzerland, it is so important to apply for a European Health Insurance Card (EHIC) before you go. It basically allows you to access public healthcare if you become sick or injure yourself while abroad. You can apply for the card on the HSE site — just search EHIC. And if you already have a card, check it has not expired. You can renew your card online.
Remember, however, that having an EHIC card is not a substitute for travel insurance. The card only provides basic care in the aforementioned countries . It does no t provide any cover outside of Europe. Travel insurance policies will cover far more, including cancellations, helicopter rescue, repatriation and so on.
