Do I Need Travel Insurance?

With many households trying to balance their finances on a knife-edge, having a budget holiday is a must for many. And for those trying to cut out unnecessary expenses, they may well ask themselves 'do I need travel insurance?'

There are many ways to economise whilst away, whether travelling in the UK or overseas and regardless of the type of holiday. And although it is possible to find cheap insurance, especially online, going without is never a good idea.

One of the cheapest ways to arrange a holiday is by finding the separate components and paying for them individually, rather than just buying an off-the-shelf deal. This means you can not only build in the flexibility you want but also ensure that you are only paying for the things you need, rather than coughing up for all-inclusive deals which offer features which you are never going to use.

Building your own holiday from scratch takes longer than simply purchasing a package deal but the end result can be well worth it. However, it is a good idea to make sure that your travel insurance is one of the first things you purchase.

Most travel insurance policies cover you from the day you pay the premium to when you return, meaning that should any mishaps arise before you are due to travel you would be covered.

But anyone asking themselves 'do I need travel insurance?' should consider whether they can afford the losses if the worst happened. Whilst many holidays pass by without a problem, should the bags go missing or a medical emergency arise, the trip could end up working out far more expensive than planned.

And for holidaymakers staying in the UK who may think that insurance is unnecessary, it may be worth thinking about all scenarios. Asking yourself questions such as 'can I afford to replace any belongings that get lost or stolen?' and 'can I afford to waste the cost of the trip if I am unable to travel due to ill health?' may put a slightly different complexion on the subject.

These days travel insurance is increasingly sophisticated and it is possible to obtain a policy which covers more than just basic costs. For example, for travellers who are unable to wrench themselves from their technology, it is possible to obtain specialised gadget insurance which means that iPods, iPads and smartphones are all covered whilst you are away.

By looking around for the most competitive deal for the most comprehensive cover, you can ensure that you get peace of mind at a very small cost.