Despite the fact that comparison sites exist to make it easier for you to choose travel insurance, it can often be a very confusing business. With this in mind, the aim of this article is to simplify the process of finding the ideal travel insurance for your needs:

How do you know you are buying from a reputable company?
It is best to choose a larger company for your travel insurance because they have the financial muscle to be able to cover a claim and are much less likely to go bust. If you do find a favourable policy from a brand you’ve never heard of, check the about page on their website to see if they are underwritten by a larger company, and if so, go ahead and choose the policy if it’s what you want. 

What happens if the company I have my policy with goes bust?
The Financial Services Compensation Scheme (FSCS) is set up to offer compensation to those left out of pocket. As long as the brand with which you have chosen your policy is regulated and authorised by the Financial Conduct Authority (FCA), then your policy is covered and you will be able to make a claim.

What should I look for in a policy?
Experts recommend that you choose travel insurance that covers medical expenses of a minimum £2 million for European countries and £5 million if you are travelling to any country outside of the continent.
Look for baggage/belongings cover of at least £1500. Also look out for: cover for missed departure, excess (the amount you are obliged to pay towards the cost of your claim), baggage cover, and valuables. Finally, also check the policy for medical exclusions as some policies will not pay out for pre-existing medical conditions. Saga offer holiday insurance for over 50’s which does cover for most pre-existing medical conditions as well as numerous other factors such as up to £2,500 for stolen or lost luggage.

How I know that the insurer will pay out?
The most important thing to consumers is that their insurance policy will pay out when required. A common reason for insurance claims being rejected is the restrictive nature of the terms of the policy. Look for a policy with proper cover (detailed above) and you shouldn’t have any problems.

If you are worried about this, it’s worth knowing that out of the 43 complaints per week received by the Financial Ombudsman in the 12 months from April 2013-April 2014, more than 50% of cases were ruled in favour of the consumer. Keep copies of your policy to hand – either in electronic or paper format – keep any correspondence, and take photos of any incident that may warrant a claim as evidence if any problems occur.