How to save on your travel insurance

All business and leisure travellers should ideally take out insurance to protect them against the unexpected cost of medical treatment abroad, lost luggage or cancellation expenses. However, when paying for an expensive trip overseas, insurance is often an unwelcome additional cost. Our tips show you how to save money when taking out travel insurance, whilst ensuring that you are adequately protected when travelling.

1. Shop around - Don't just accept the insurance that your travel agent or airline offers you, there may be cheaper travel insurance available which suits your needs.
2. Negotiate - Many travel agents can offer a discount on travel insurance, by passing on some of the commission they receive from the insurance company.
3. Arrange insurance via your employer - If your company or professional association has a group deal with an insurance company you may get a favourable rate if you insure through them.
4. Bundle your policies - By using one company for all your insurance needs, including home and life insurance, you could be offered a substantial discount on your travel insurance policy.
5. Be honest and accurate - When completing your travel insurance application, be sure to provide all the background information required by the company. Otherwise they may refuse or reduce a later claim.
6. Consider the destination - Taking out insurance with unlimited medical cover is worthwhile if visiting places such as the USA and many European countries, where medical care is expensive. For other destinations, a lower level of cover might be sufficient.
7. Take out an annual policy - If making several holidays or business trips a year, this is likely to be cheaper.
8. Take out a combined insurance policy - If travelling with your family or a companion, a joint policy is likely to be better value for money. Many insurance companies will jointly insure two unrelated people travelling together.
9. Increase your excess - If you're prepared to make a higher excess payment on any insurance claim, your premium can be reduced significantly.
10. Arrange insurance early - By taking out insurance when you first pay the deposit on your trip, you will have immediate cancellation cover.
11. Choose a well-known insurer - In some countries medical treatment may be refused if they don't recognize the insurance underwriter.
12. Use your credit card travel insurance - Many cardholders are entitled to a certain level of accident and emergency cover if they pay for their trip with their credit card. For some people this may provide sufficient cover, others can use it to top up another policy.
13. Don't under-insure - Even though your premiums may be lower you'll pay heavily if you have to claim and find that your policy doesn't cover the cost of medical treatment or replacing your lost possessions.
14. Travel before 70 - If approaching this age, make that big trip first as travel insurance premiums will be higher once you turn 70. Over-80s may find it very difficult to obtain insurance cover.