Supposing My Luggage Is Lost?

If your luggage is lost or damaged while in someone else's care (for example the Airline baggage handlers) you will be able to claim compensation. You do not need insurance for this. You will however need to tell the company concerned as soon as you notice the loss or damage. There is usually a desk in the baggage reclaim area of most airports for this specific purpose. You will be given a Property Irregularity Report (PIR) form or a computer generated receipt. Make sure you obtain this as it is the proof of loss or damage and also contains full details claiming compensation. Provided you follow the instructions exactly and provide all the paperwork requested (e.g. baggage check tags, flight tickets, PIR form) the claim should be settled within a few weeks.
If you think that your luggage will be lost or stolen while in your own care you will have to decide whether you are prepared to take a risk or take out Holiday Insurance. This will probably be influenced by the value of your luggage. If you take minimum luggage with you then it probably isn't worth insuring (or stealing, for that matter). If however you have an expensive camera or valuable sports equipment you will need to consider insurance.
Remember to check you household insurance policy (assuming you have one). Many of your belongings might already be covered for loss or theft even if the loss or theft occurs in Spain. If necessary phone your insurance company or broker to ask.

Credit Card Insurance

Many expensive items (cameras, binoculars, etc) bought with a credit card are covered for loss, theft, or damage. This cover is free and normally lasts for a specified time following purchase. If your valuables are relatively new and were paid for by credit card they may already be covered. Phone your card provider to ask.
If you pay for the travel part of your holiday (for example the flight tickets) by credit card, you may be entitled to free travel insurance from the card provider. This covers you for injury or death while you are actually travelling. It is not the same as Holiday Insurance that covers you all the time you are on holiday. However it’s free. Phone your card provider to see if it offers this cover.

Another benefit of paying by credit card is the concept of joint liability. For example, if you pay for an airline ticket with a credit card (not a debit card) and the airline goes out of business before you fly, you are entitled to claim your money back from the credit card company. Phone your card provider for details.

Why Do People Tell Me I Need Insurance?

Travel Agents, Tour Operators, Insurance Brokers, etc all make a lot of money selling Holiday Insurance. Don't be persuaded by someone with a vested interest; make up your own mind.

Types of Insurance

If you decide you do need insurance then consider how much you need. Do you just want basic medical cover to ensure you can be flown home if you get really ill? This is likely to be much cheaper than full Holiday Insurance that covers a whole range of things. Do you want insurance to compensate you should you have to cancel your holiday? If so check the cover carefully before you pay. Often the situations in which you are entitled to claim are so exacting (for example, if you or a close relative dies) that you will rarely be able to claim. In most cases the situations in which you will be able to make a claim are likely to be personally devastating scenarios and you will be so upset that the last thing on your mind will be claiming a refund of your holiday. The insurance company will almost certainly NOT pay out because you "change your mind" about going on holiday, have a bad cold, or the dog dies!
Check out any "excess" before you buy a policy. Excess is the amount you have to pay for each and every claim. For example if your policy has a £100 excess and you claim for a stolen camera worth £110, you will only get £10 compensation from the insurance company. Do you really want a policy with £100 excess when most of the belongings you take on holiday are worth less than £100?

Shop Around

The best deals for Holiday or Travel Insurance are almost certainly not available from your Travel Agent or Tour Operator. Search the advertisements in the travel section of the Sunday papers, try the yellow pages, and try the Internet. Consider an annual policy if you go on holidays more than three times per year. Some of the best bargains for both single trip holidays and annual policies can be found on the World Wide Web. Check out http://www.gosure.com which recently offered a holiday insurance policy for five people for one week in Spain for as little as £20. Another Travel Agent quoted £60 for a similar policy.

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