Holiday season is on its way. You can almost smell the sun cream and sea water. Before you pack the bags, though – in fact, as soon as your holiday is booked – it’s worth sorting your travel insurance. We know it’s not the most exciting job, but here in Irish Country Living, we have done a lot of the hard work for you, so your dream holiday doesn’t turn into a nightmare.

We’ve been comparing travel insurance for four years running and, each year, we compare prices for a family of two adults and two teenagers, looking at annual cover options for European holidays as well as worldwide.

The good news is that, unlike car insurance, which has seen big hikes in recent years, travel insurance in much more stable. The most significant increase we found this year was AIG Insurance, which went up €12.58 on its European cover, from €78.77 to €91.15 while their worldwide cover went up €18.42, from €78.77 to €136.85.

Topping the List

These increases were surprising, considering that AIG was already one of the most expensive policies. This year, due to its increases, it has now claimed the spot of the most expensive policy on the market, alongside An Post, which is underwritten by AIG.

So who’s working out the cheapest? Once again, it’s AA Ireland – for the fourth year running. At €41.40 for European cover and €61.56 for worldwide cover, it is more than half the price of AIG and An Post. When comparing packages, we opt for the medium package, where applicable, but it is important when looking at all insurance quotes to see what you are getting for your cover.

For example, when comparing AA Ireland and AIG, both companies will cover for €5m in medical cover and while AA Ireland’s excess is €75, AIG’s is €25 more expensive at €100. Both will cover baggage claims of up to €2,000, although AIG will cover €150 more for a single item limit. AIG will also pay out more if there is a delay in your baggage: €300 versus €200. The most significance difference is if your trip is cancelled. AIG will cover €5,000, while AA Ireland covers €3,500.

Cancellation Costs

When comparing quotes, pay attention to the cancellation costs – especially if you are heading away on a trip of a lifetime, such as a honeymoon or expensive cruise, for example. In our comparison, AXA offers the most cover, with cancellation costs of €7,000 covered. At €104 for worldwide cover, AXA is very much in the middle when it comes to the price of its cover.

However, if your holiday is worth a lot of money, it could be worth spending those extra few euros. Insureandgo.ie offers €6,000 for cancellation costs and its worldwide cover of €87.96 is quite competitive.

What else concerns you as a consumer? If medical cover is really important to you, then look into Multitrip.com. At €49.99 for European cover and €61.99 for worldwide, they are also very competitive. Their worldwide cover is just a few cents more expensive than AA Ireland, while European cover is €9 more expensive. However, their medical coverage is €20m. Given that all the other companies cover between €3m and €5m, they are definitely the leaders in this category.

Another thing that Multitrip.com offers is a two-year package. First of all, it’s got the convenience factor of not having to shop around this time next year. On top of that, you’re saving an extra €10 on European cover and €12 on worldwide cover, versus taking out two one-year policies.

Two Year Policies

It’s a pretty safe bet taking out a two-year policy for travel insurance. Let’s compare prices to last year: 123.ie, Aviva, AXA and Blue Insurance all stayed the same price, as did Insureandgo.ie and Multitrip.com. Some had some amendments to their policies.

For example, Insureandgo.ie now covers €200 if your departure is delayed, versus €500 last year. Multitrip.com’s delayed departure cover is now €150, versus the better cover of €200. AIG and An Post increased the excesses on their policies from €70 to €90 when claiming for baggage, personal property and cancellation. However, despite these amendments, most policies remained relatively consistent.

Finally, whatever company you choose for your travel insurance is up to you – but you should sort it straight away. If you book your holiday now and are heading off in August, and only decide to take it out the day before, you will not be covered if the travel agent goes bust the week before.

To be covered for cancellation, you need to book your travel insurance as soon as you book your holiday. Also if you do forget about your travel insurance as the plane takes off, booking it when you are abroad will cost you far more.

So get this insurance nuisance out of the way so you can concentrate on more important things for your holidays, such as what bikini to pack and which book you plan to enjoy. CL

>> Readers’ questions

Do I really need travel insurance? I already have health insurance.

Make sure to inform the insurance company that you have health insurance, as this will bring down your premium. However, health insurance on its own will not be sufficient cover. It may cover some medical expenses if something happens but you won’t be covered if the trip gets cancelled due to a travel agent going bust. What if your bag goes missing and you have to fork out for a week-long wardrobe and toiletries? Even simple things like your money getting stolen. None of this is covered by health insurance so an extra few euros on travel insurance is an essential spend.

Should I take out extra cover for travel disruption?

It depends on where you are heading on holidays. If you are off to France, this should be a consideration, given the recent Air France strikes. If you’re heading on honeymoon to Hawaii, then given the volcanic ash, this would also be covered. Some insurance companies also offer cruise cover in case you miss your connection to the boat, very important if you have forked out big money for a cruise.