There are many different types of insurance policy and we will usually not have insurance for everything that we do. However, there will be some that are legal requirements, some that are part of a contract and some that are just sensible to take out. However, when it comes to things like travel insurance, we may not be sure whether it is a good idea to take it out or not. It is worth thinking it through.
If you are going abroad on holiday, then you will need to think about the cost of any health cover that you might need. For example, if you are unwell and need to see a doctor or have hospital treatment then there will be a cost associated with this. You will also need to consider what might happen if you have an accident and need care of some sort. In some countries care will be free, particularly in Europe. However, you may need certain documents before you go to show when you have the care to prove that you are a UK citizen and entitled to free care. Do bear in mind that not all European countries will automatically offer this, particularly after leaving the EU. So, make sure that you check before you go.
You may feel that you are too young and not at risk of needing any sort of medical care. Do find out how much it will cost though, if you do not have cover and then you can decide whether you think that it is worth it. It could be quite a risk that you are taking and if you are young with no medical conditions, you will find that the insurance will be cheap for you anyway.
You may find that your insurance will cover you if your luggage gets lost or damaged. This could be something that may happen on the plane or during transit or perhaps it may get stolen form the place that you are staying. Having cover for this could be quite worthwhile as you may have a lot of expensive things in that luggage. Find out whether the airport will pay to replace lost items and if the accommodation will cover theft and then you will be able to decide more easily as to whether it is worth paying for the insurance or whether you will be covered for this anyway.
If you have to cancel the holiday, particularly at short notice, it is important to think about whether you will get your money back. Often you will need to pay a non-refundable deposit and you may have to pay for the whole thing and you may not be entitled to any money back if you cannot go. Check whether this is true for you, with regards to the costs of travel, accommodation and anything else you have prepaid for. Then check whether insurance will cover this and whether there are any exceptions too. You may find that some things will be covered by law – so if the government blocks travel to a certain place, then the company may have to legally reimburse you, but make sure that you are aware of the law in case it is better to get insurance for this sort of thing.
It is worth adding up all of the risks that you will be undertaking and getting a quote for the insurance. Then you will be able to decide whether you feel that it is worth paying this money in order to have the peace of mind and save the money that you might otherwise have to pay out.