merlin

Types of cover: annual vs single trip.

Annual multi-trip travel insurance. This covers all trips during a year for a one-off fee, within a set maximum number of days away (usually between 30 and 60).

Trips are usually roughly defined as business or travel overseas (even a day trip), or more than two consecutive nights away in the UK at prepaid accommodation starting the moment you leave until the moment you return.

Winter sports may be included, usually for a limited number of days, though do check it includes equipment and any more unusual sporting pursuits.

Single trip travel insurance. This covers a specific occasion. It's been given a bad name as most people think of over-expensive travel agents' policies.

As a very rough rule of thumb, go away more than two times in a year (including weekend breaks) and you're better off with an annual policy.


Keeping the costs down – what to cover

Cover terms do vary, but not too much. Obviously those with a penchant for naked underwater knife juggling or electric eel spotting in war zones will definitely need specialist policies.

Don't over-cover. Many insurers try and flog ‘gold' policies with unnecessarily high limits. Medical expenses cover should be at least £2million but there's really no need to pay extra for £20million worth.

Personal liability cover, which pays out if you damage other people or their property, should be £1 million; and ensure there's cover for cancellations and curtailments, luggage and possessions possibly including lost cash, legal expenses and delay.

Family insurance is cheaper. Combined insurance for a couple or family usually costs less but check if it covers individuals travelling separately - most do, providing they're notified first.

Europe-only cover is cheaper. If you're unlikely to venture further afield, go for this as opposed to worldwide cover, as it should be extendable if necessary.


Free Is Cheapest

The Alliance & Leicester current account includes annual travel insurance for free. Normally it pays to be wary of such freebies, but in this case it's a no-fee account, pays the highest in-credit interest, offers a 0% overdraft for the first year, and gives you £25 when you sign up to the account packages.
The cover itself is individual annual worldwide multi-trip policy. It can be upgraded to family cover for £48, still making it a best buy.

And finally don't confuse travel insurance with credit card travel accident insurance, which only covers accidents had while in a train, plane or hire car paid for on the card.

Take a look here for very competitive cover....

http://www.travel-insurance-web.com/

Merv!