Insure you don't get mugged

Bag bargain hol cover

By Martin Lewis, Britain's money saving expert, 14/06/2009

WARNING! Protect yourself now against holiday theft this summer.

Not from muggers and pickpockets but travel agents and others flogging ridiculously overpriced holiday insurance.

It's possible to get a YEAR'S cover for just £15-so ignore those selling a WEEK'S worth for fifty quid.

Ironically, these policies designed to protect us are often daylight robbery, so first arm yourself with the following tips and techniques then check out the best-buys.

Beware Travel Agents

Imagine the scene-you've just committed to a sun-drenched trip at a hot price and are basking in potential warmth. The agent purrs "and you'll need insurance", so you nonchalantly agree. After all it's just an add-on.

Yet while you focus on getting a cracking holiday deal, the agent's real money-making vehicle may be this sidecar-at up to FIVE TIMES over the odds. Always remember you've a right to buy elsewhere.

Get an annual policy if you go away twice a year or more

They cover ALL trips for a year. As a rule of thumb, if you stick to Europe they're cheaper if you travel more than twice (including weekend breaks). If you go outside Europe, it's more than once.

Get family or couple cover

Risk increases more with more trips rather than more people, so it's cheaper to buy group cover. Yet don't think it automatically lets you travel separately. Many firms allow it but ONLY if you tell them beforehand.

Free medical cover in Europe

The EHIC card (previously E111) is an EU and Swiss government scheme giving cardholders access to the same healthcare rights on holiday as that country's citizens. If it's free or discounted for them, it's the same for you.

It works for ALL AGES and is crucial in emergencies. Yet don't see it as replacing travel insurance-it only works in state hospitals and doesn't cover baggage, delays etc. But it can mean you have treatment and needn't pay an insurer's excess.

Keep it with you even at the beach, as you must present it to use it. Get one at www.ehic.org.uk or call 0845 606 2030.

Beware credit card travel insurance

Think your credit card includes travel insurance? Check again-it's often actually travel accident insurance, which only covers any accidents suffered on board a train, plane or hire car paid for on the card. A very few bank accounts and prestige credit cards do include actual travel insurance but generally only if you use the card to pay for the WHOLE trip. Always double-check.

Do you really need "platinum" cover?

Super-high platinum policies hook you in by advertising £200 million medical cover. But it's worthless because claims never reach anything like that. It's just a clever ruse to charge more without any increased protection.

The following's a rough guide to what you need: £2 million for medical expenses; £1 milllion for personal liability in case you plough into and break someone's leg with your suitcase; £1,500 for baggage (if your home insurance policy doesn't already cover it); and enough to repay you for cancellation or delay.

Cross-country knicker-elastic bungee jumping?

On adventure holidays, whether off-piste skiing or wrestling a crocodile naked on your cross-country bungee adventure using only knicker elastic, don't assume a standard policy will do.

Declare what you're doing and also where you're going if it's rated unsafe by the Foreign Office. Don't give insurers any more reasons to discount your claim, though it will mean a costlier policy.

Pre-existing conditions or disability?

Outrageously, quotes can be in the £1,000s from established insurers, particularly if you're over-65.

Instead, in Europe, take your EHIC card to qualify for STATE-RUN hospital treatment.

Then check out the specialist www.ehicplus.com insurance policy. Its medical cover simply meets costs incurred in that EHIC treatment plus private ambulances and medication, baggage and cancellation.

For outside Europe, try specialist disability insurers like Globaltravelinsurance.co.uk , Orbisinsurance.co.uk and Travelbility.co.uk

Save with my annual policy picks

SINGLES: Insureme4 has a year's Europe-only cover for £15, and Topdog Insurance offers worldwide cover for £24. These prices are only available via comparison website www.moneysupermarket.com FAMILIES (2 adults, 2 kids): Topdog insurance is £27 Europe-only and £39 worldwide, again only via Moneysupermarket.

OVER 65s: Prices usually shoot up but Insurefortravel allows up to 74- year-olds to buy at £47 for Europe. Elect's price is £78 worldwide. Again, these are only via Moneysupermarket.

OVER 75s: It's more complex but competitive deals are do-able. See www.moneysavingexpert.com/travelinsurance

As online usually wins, these picks reflect this. If you're not on the web then use supermarkets, Boots and Superdrug - which undercut most travel agents.

No matter how good a policy, some people always fall through holes, so focus on COST - with very basic cover levels. ALWAYS check the cover and excess (your payment towards claims) suit you as well as the price - which can change daily.

More options on all these and cheap single-trip policies are at www.moneysavingexpert.com/ travelinsurance

SEND questions for publication to notw@moneysavingexpert.com

GMTV money guru Martin Lewis is the creator of the Consumer Revenge website www.MoneySavingExpert.com which is packed with info on how to get more money in your pocket.

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