Travel insurance – check your cancellation limits

What are the main expenses when you book a holiday? Travel and accommodation costs are usually the top two things that come to mind when asked that question.

However, what about pre-booked excursions, hire car and anything else you have paid out money for in advance of your holiday?

When purchasing your travel insurance you need to ensure that your cancellation limit will cover not just your main expenses but everything else you have pre-booked as well.

If your travel and accommodation costs add up to £1,000 and you have a cancellation limit of up to £1,000 then this should be sufficient. But what about anything else you have booked beforehand that you may not be able to get back from the company direct? This needs to be included in your limit as well. For example, a pre-booked safari costing you £200 non-refundable deposit would not be reimbursed from the travel insurance company because your maximum cancellation limit has been reached with claiming for your main expenses of up to £1,000.

Also bear in mind ‘excesses’ i.e. the amount you would have to pay in the event of a cancellation claim. Check your travel insurance policy as the amounts can vary quite significantly from policy to policy.

When you have booked your holiday it is essential that you take out travel insurance as soon as possible to cover you in case of cancellation. Unforeseen circumstances can occur at any time and you don’t want to be out of pocket should you need to cancel – especially when you come to rebook that holiday and have to fork out for it again!