Check travel insurance limits before summer holiday

14 July 2014

Brits jetting off on their summer holidays are being urged to check their travel insurance policies before they travel to make sure they have suitable cover.

New research from comparison website found that holidaymakers travelling abroad pack on average £967 worth of clothes, accessories, valuables and gadgets. But around one in five (18%) estimate that they take more than £1,500.

But if anything goes wrong, travellers could find themselves out of pocket, if their travel insurance doesn't provide adequate cover. found huge variations in the cover limits available for holidaymakers, with the overall limit for the value of possessions in baggage ranging from £200 to £10,000, while 7% of annual policies and 6% of single-trip policies don't provide any cover at all. Typically, the total limit for baggage is £1,500.

It also found that the majority of policies limit the amount you can claim for a single item, to between £200 and £300; while payouts for lost or stolen items are limited to between £100 and £2,500 depending on the policy. Most only provide cover of between £100 and £450.

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Terms and conditions

Caroline Lloyd from Travel Insurance said: "While travel insurance primarily covers the cost of unexpected medical treatment and repatriation if you fall ill or are injured abroad, most policies also include cover for lost or stolen possessions.

"However, cover limits, excesses and exclusions for holiday baggage vary widely from policy to policy, so it's essential that you read the policy terms and conditions to find a policy with the level of cover you need – rather than just opting for the cheapest.

"When you're choosing which items to pack, bear in mind that most travel insurers don't pay out baggage claims on a new for old basis. They make allowance for wear and tear and will only pay out the amount the item was worth when it was lost or stolen. And most limit the amount they will pay out for a single item - typically in the range of £200 to £300."

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