Insurance and Foreign Currency: Your Vacation Essentials

It is a time of year that everyone looks forward to, which is heading off on holidays; whether it’s a welcome chance to relax, to explore somewhere new or to return to a favourite destination. There’s more choice about where to go than ever and since the arrival of the internet – and particularly broadband – it’s much easier to find and book the holiday you really want. But before you head for the airport, it is important that you make sure you get a good deal on essentials, such as travel insurance and foreign currency.

You might think you don’t need travel insurance when you holiday abroad, but if you were to fall ill or have an accident, the medical bill could run to thousands of pounds (much more in the United States where medical costs are particularly high). In addition, your travel policy will also cover you if you have to cancel your holiday, in the event of illness, or if you lose your luggage or valuables.

However, this makes it all the more important that you check your cover, as not all travel policies are the same; therefore it’s really worth reading the small print. Check how much you’d get if you were to make a claim, whether it’s for a cancelled flight, missed departure or lost luggage. Also, make sure you’re covered for any sporting activities and that you have enough medical cover.

It is useful to know that in many European countries you can get some medical treatment free or at reduced cost if you have an EHIC (European Health Insurance Card). But, it doesn’t cover all types of treatment, nor is it a replacement for travel insurance.

Furthermore, it is important to watch out for the excess. Most travel insurance policies will impose several different excesses (the first part of the claim that you have to pay) – such as one for lost luggage, another for lost money, etc. It could mean that one claim triggers two or more different excesses, especially if you’re travelling as a family. Some insurance policies limit the excess you have to pay, whilst others do not, so it’s worth checking before you sign up.

This leads to the question of: where should you buy your insurance from? Buying your insurance from a travel agent may be convenient, but if you take out a policy with a travel agent when you book your holiday, it’s generally not covered by the Financial Services Authority. That means that if things go wrong, you wouldn’t be able to take your complaint to the Financial Ombudsman Service (which is a free adjudication service) if it hasn’t been resolved by the insurer.

It is important to know that if you take the time to look around, you can make your travel money go further. If you are heading to a euro zone country, no matter what month of the year it is, you may be rather shocked by how little you’ll get for your money. Also, more than often buying your currency at the airport will never get you the best rates and as the rate of the pound against the euro tends to fluctuate all year round, it’s well worth shopping around.

As such, the two most common sources to look for the most competitive rates in recent times are either on the internet, or on the high street. Online travel money services can have some of the most competitive rates; especially if you’re changing several hundred pounds at a time, as you normally will not have to pay a delivery charge. However, it’s also worth shopping around on the high street where competition is strong, particularly among the bigger well-known retailers.

As it goes, some of the smaller bureaux de change may charge extra fees (from handling charges to commission) that make it difficult to compare different deals. Therefore, do your homework and decide upon how much money you want to take with you, as then you can ask how much foreign currency it will buy you, once all the extras have been added on.

It is even beneficial to consider your financial situation before you even leave for your holiday. If you think you may return home with unused money, ask whether your foreign currency provider will buy it back without charging a commission. And, whilst it’s important to know that not all do; it’s also worth knowing about especially if you’re travelling to a country that you’re unlikely to visit again in the near future. Therefore, after you have solved the problem of obtaining your foreign currency, the next consideration is how you are going to spend it.
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Adam Singleton writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.