By Simon Read
The stronger pound means Christmas shoppers heading to the US look likely to get an extra £60 for every £1,000 they spend compared with in October when Sterling slumped. This time last year, holidaymakers travelling to the US had to settle for less than $1.55 for every pound they exchanged, compared with the $1.67 per pound they are receiving now, says foreign currency firm FairFX.
But shoppers excited by their trip and concentrating on making savings can forget to ensure they have the right insurance to cover the cost of gifts they're bringing home.
Worse is the fact that some people head abroad with no travel insurance at all, risking lost baggage becoming a financial disaster, rather than an inconvenience that can be fixed.
Thinking of skimping on Christmas cover?
With money so tight in recent times, some travellers are tempted to save cash by journeying without cover. In fact it could be as much as one in four people, according to research from Post Office Travel Insurance.
Part of the problem is the shortness of the trips, especially for the tens of thousands planning quick visits to Europe for the foreign Christkindlemarktes.
It’s easy to wrongly assume that if you’re only going to be abroad for a day or two, you simply don’t need insurance. But whether you fly for a weekend or a month, the same travel risks apply.
“With so many people considering Christmas shopping expeditions over the next few weeks, it's really important they also make sure they've got their travel insurance sorted,” advised Steve Williams, who is head of travel insurance at Confused.com.
“Insurance, for this type of trip, can often be overlooked as the trips are usually only for a matter of days. Irrespective of the length of trip, things can still go wrong; baggage can still be lost, planes delayed and accidents can happen.
“With this in mind, travel insurance is a necessity to cover the items you take out with you, and more importantly, cover the items and gifts you bring home.”
That’s an important point. If you plan to buy big ticket items while shopping abroad, will you be able to claim for them if they are lost or stolen in transit? Most policies impose a limit on the individual worth of expensive items which means you might have to insure them separately.
It’s therefore essential to check your policy details before flying to ensure you have adequate cover for anything you plan to buy although, in practice, it’s likely you’ll only experience problems for items costing around £1,000 or more.
Don’t skip over the small print!
It’s also a really good idea to read the small print to make sure you meet your insurance provider’s security requirements. Most firms insist that your valuables are kept in a specified safe place or a claim could be rendered void.
So if you let your stuff out of your sight, putting in the back of a taxi while you return to your hotel for another bag, for instance, an insurer could turn down your claim if it is then stolen. Keeping presents or bags on a car seat, where a crook or sneak thief can see them, can also lead to claims being turned down.
In other words, you need to be extra vigilant when travelling with valuable possessions. If an insurance provider suspects you may have been even a little bit careless leading to a theft, they will fight your claim.
Of course, travel insurance isn’t just about possessions, it’s also about your health. The bill for being treated for a heart attack in Spain, for instance, could cost as much as £35,000. Being able to pay for treatment for medical emergencies abroad is essential, which could make the few pounds cost for cover seem like a bargain.
