Travel insurance

Poring over the small print of your travel insurance policy hardly seems the ideal way to get warmed up for your summer break. But doing this essential pre-holiday reading could prevent distress when things go wrong.

One reader recently found himself tripped up after trying to claim on his insurance after falling ill and having to abandon a planned holiday in northern England.

He had worldwide cover with Lloyds TSB as part of its Platinum added-value current account. His claim was turned down because he had not pre-booked accommodation with his trip, a requirement for travelling in the UK only.

The London-based reader – who often travels in the UK to visit family and friends – was angry as he felt this should have been highlighted in the Key Facts summary, which consumers are now encouraged to rely on to tell them important things which may affect their decision to buy. The condition was contained in the 20 or so pages of fine print which came after he had bought the policy.

Lloyds says that the pre-booked accommodation requirement is a standard exclusion in the industry for short journeys in the UK and that was why it wasn’t highlighted in the Key Facts document.

However, this interpretation is not shared by at least one of Lloyds’ rivals. HSBC has the same limitation for insurance offered with its Account Plus added-value account, but considers it important enough to highlight in its Key Facts summary.

This is just one example why it is important not to rely on policy summaries as gospel when shopping around. Other common areas where holidaymakers may find large policy variations include excess charges for claims and payout levels for medical expenses, lost baggage and personal liability.

According to Insuresupermarket.com, the price comparison website, the cheaper policies can sometimes have either little or no baggage or cancellation cover or, in some cases, a reduced medical cover.

Remember that you have a cooling-off period, usually 14 days, after you buy when you can cancel your cover if it is not right for your needs.