Hassle-free holiday finance

Every summer, millions of Brits jet off to foreign destinations all over the world, aiming to see new sights and generally, just get away from the same place they live in for the rest of the year. Of course, the prospect of a holiday leads to plenty of excitement, and in the run up to going away, it’s easy to forget about some of the more "mundane" aspects of your holiday, such as your finances and insurance cover while you’re away.





However, you could find yourself severely out of pocket if you fail to prepare yourself properly for a trip abroad. For instance, how about if you’re flight fails to even get off the ground?





If you’ve booked a package holiday that includes a flight, then you should be covered by the Civil Aviation Authority’s ATOL (Air Travel Organisers’ Licence) scheme if your flight, for whatever reason, fails to get off the ground. However, if like an increasing number of Britons, you’ve made your own holiday arrangements, you may not be covered. As such, it’s advisable for holidaymakers to check whether their holiday insurance covers independent travel. Some policies are actually even specifically tailored for the needs of the go-it-alone traveller. It’s also a good idea to pay at the least the deposit for your flight on a credit card, that way you’ll be covered by the Consumer Credit Act if there are any issues.





It’s important to make sure you’re insured before travelling for a whole host of reasons, however one particularly important reason is that it will cover you in the event that you lose your hand luggage. Research has shown that the average traveller’s hand luggage contains valuables worth £1,354 – so it’s fair to say you’d be out of pocket if you lost it without being covered.





That being said, perhaps the most important aspect of holiday insurance is that it will cover you if you take ill while abroad. Without cover, you could end up with huge medical bills. While a European Health Insurance Card (EHIC) will give you limited treatment in Europe, it won’t pay for repatriation and, of course, is useless if you’re travelling elsewhere. If you, for instance, broke your leg while in the USA, the treatment could cost several thousand pounds. As such, it’s important your personal travel insurance provides adequate cover, wherever you’re travelling to.





If you’re a regular traveller annual cover can be cheaper than buying single trip cover each time you travel. You’ll then be covered for weekends away as well as any longer trips.





Don’t rely on ‘free’ insurance on some packaged bank accounts: the cover may be basic and insufficient for your needs, particularly if you plan to take part in any potentially hazardous activities, such as diving, while away.





Finally, you’ll need cash and cards. Don’t leave buying your holiday cash until you get to the airport: you’ll get a poor exchange rate and you’ll have to pay a fee too. Monitor the rates on offer on the high street: there’s a lot of difference between the different banks and bureau de change deals. You’ll need a good credit card too, as you’ll find it very hard to hire a car or even get a hotel room without one.





The author of this article is a part of a digital blogging team who work with brands like M&S Money. The content contained in this article is for information purposes only and should not be used to make any financial decisions.