The conflict in the Middle East has impacted so many aspects of our lives that it can seem trite to talk about its impact on our summer holidays and our wallets.
But fears over jet fuel supply and what that might mean for flights over the coming months has made such talk inevitable. And it is likely to be amplified in the days ahead.
If jet fuel becomes scarcer in the weeks ahead and prices on global markets continue to climb, then it will put pressure on airlines and tour operators and could see flights to certain destinations cancelled or reduced. Even if the current ceasefire holds, it appears certain it will take a long time to get refineries and supply chains running at full speed.
The reality is that none of us can do much to protect ourselves against higher prices or cancelled or curtailed flights as a consequence of conflict.
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But the are still steps that people should take to safeguard the money they have already spent on travel and stop themselves having to fork out potentially huge sums in the future. And one of the key ones is taking out travel insurance.
With that in mind, we have some dos and don’ts if you have yet to take out a policy or if you suffer a misfortune that interrupts your trip in the weeks ahead.
Don’t forget to take it out
We can’t even begin to tell you how many queries we get from readers involving travel, and many focus on cancellations and delays as a result of unforeseen circumstances. Those unforeseen circumstances could be anything from illnesses and deaths to computer meltdowns, weather events and industrial action.
In a piece of research published earlier this year, the Competition and Consumer Protection Commission highlighted how holidaymakers spent an average of almost €2,500 on flights and accommodation last summer, and that 16 per cent (or one in six) had issues with their trip.
[ Travel insurance – don’t leave home without itOpens in new window ]
In spite of that, as many as one in three holidaymakers had no travel insurance, rising to almost half of those under the age of 35.
Do take it out sooner rather than later
As many as 50 per cent of all claims are made before travel, with illness and death the most likely reasons. That is why it is key to take out cover the moment a trip is booked rather than waiting until the very last minute because – as everyone knows – it is impossible to say when something terrible will happen.
Health cover
Don’t rely on private health insurance or the European Health Insurance Card – which allows an EU citizen to be treated like the citizens of whatever EU member state they are in. They are both undoubtedly important but will not help if a trip has to be cancelled or curtailed or if you are the victim of a crime.
Do think of the consequences of not having it
If you have the mildest of heart attacks in the US, it might cost you a quarter of a million euro, depending on where you are treated and for how long. An air ambulance home from Switzerland might set you back €20,000 while a holiday cancelled at the last minute because of a family bereavement could well see a family down by around €3,000. Even a lost couple of low-fare flights to Spain because of a wildcat strike will cost far more than an annual cost of a policy for a family of four.
Don’t be too concerned about the top-line figures
Companies boast about the millions of euro of medical cover they offer but, for most people, the level of cancellation or curtailment cover is equally important. The cheapest policies we priced offered cancellation cover worth €1,000 – which wouldn’t make much of a dent in a family holiday overseas – while the cancellation cover for the most expensive of those policies was €6,000. That’s a substantial difference for the sake of less than €50 a year.
Do check your renewal date
If you have an annual policy, keep tabs on when it renews and have a clear understanding of how much you are going to pay. We have heard of people who have signed up for an annual multi-trip policy at a fairly competitive price of around €150 for a family of five only for it to more than double in price in year two.
[ Travel insurance offers anything but peace of mindOpens in new window ]
Do be straight up when considering pre-existing conditions
Insurance companies can be pretty ruthless when investigating claims and if they discover a cancellation or curtailment is connected with a condition a person had but did not disclose, they will go to the ends of the Earth to reject it.
Don’t forget extended family
Many insurers will reject a claim if a curtailment or cancellation is because a family member who is not travelling or who has been sick for many years dies.
Do pay attention to the small print
It will be impossible to read it all – some can run to more than 20,000 words – but look for exclusions and search for words and phrases such as “excess”, “excluded”, “not covered”, “passport” and “phone”. Because in some cases, phones are not covered, while valuables may be excluded if they’re not carried at all times. And exclusions can be deployed if a passport is stolen from a hotel room but wasn’t in a safe.
Delays and cancellations
Do make sure the policy covers delays and cancellations as a result of what used to be called acts of God or circumstances beyond the control of airlines or tour operators. Protection against strikes, volcanoes and war does cost more but not that much more and could save holidaymakers a world of heartache should things go off the rails.
Don’t forget the adventure sports
If you’re going skiing or doing sone adventure sports, the standard policies will not cover you so you will need add-ons to take care of medical evacuations, repatriation and 24/7 worldwide assistance.
Do remember the steps to take
Always inform your insurer as soon as you realise there is a problem and you can’t go on the trip or need to cut it short or have been mugged. If you are the victim of a crime, you absolutely must report it to the police quickly. If you leave a police report for longer than 24 hours, an insurance company might reject your claim. Make sure you get a clear and unambiguous report from the local authorities as it will be crucial to any claim being made.
[ Travel insurance and car hire for your holiday: An essential guideOpens in new window ]
Don’t forget the age restrictions
Ageism is rife in the sector and can see someone who is 66 paying double what someone aged 65 pays. Someone who hits 70 or 75 can often be simply denied insurance altogether, even if they have no known medical issues.
You can contact us at OnTheMoney@irishtimes.com with personal finance questions you would like to see us address. If you missed last week’s newsletter, you can read it here.
