JET OFF
We saved £695 on our holiday thanks to a Martin Lewis tip – and we managed to bag extras too
Plus how to get the best holiday cover when you're jetting off
A COUPLE managed to save £695 on their holiday and bag extras thanks to a Martin Lewis tip.
In the latest MoneySavingExpert newsletter, Martin's team explained how to save money on your travel insurance.
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Whatever type of holiday you fancy, you'll know it’s important to take out travel insurance in case anything goes wrong.
It helps you to claim if you need emergency medical treatment while you’re abroad.
Insurance can also cover you if your luggage gets lost or belongings are stolen, or if you have to cancel a trip due to death, illness or bereavement - though exactly what's covered will depend on the policy you have.
However, Martin's money saving team suggested that budding holidaymakers could take advantage of combined phone and travel insurance deals.
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One reader of the MSE newsletter said they had saved money by opening an account with Nationwide when shopping around for travel insurance.
That's because they are what's known as packaged bank accounts, which offer extra perks, like travel insurance and smartphone cover.
They said: "I read your article about mobile phone insurance which gave info on Nationwide.
"I had been shopping around for annual travel insurance. By opening this account, my husband and I saved £695 on our travel cover, and have breakdown and phone cover also. Thank you."
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Exactly how much you can save will depend on how much you are paying for these separately.
If you get one of these bank accounts you don't have to switch it to be your main account.
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But these accounts often come with a monthly fee, so you'll need to check that the perks you're getting are worth more than the fee.
According to the MSE team, families or couples can pay under £160 a year to cover all smartphones and get travel and breakdown cover too with the Nationwide account.
The Nationwide FlexPlus costs £13 per month. You can also get a similar account with Virgin Money, the Club M, which costs £12.50 per month.
Both offer cover for phones of any age for all living in the household - including the kids under 18, or 21 in full-time education.
It offers worldwide family travel insurance and UK & European breakdown cover.
It means for under £160 a year, you can nab all this insurance for roughly the cost of network cover for one phone.
If you already have any of these policies, it's worth making sure you're not doubling up and paying twice for the same thing though.
But check the full details of the policies offered with the account first before cancelling anything so that you know that it fully suits you're needs.
Plus beware any early cancellation fees.
You'll also need to check the terms of the account itself, even if you're not using it as your main account. for instance if there's a minimum deposit you need to make each month.
What are packaged bank accounts?
Packaged accounts do exactly what your usual current accounts do - except they offer a range of extras and services thrown in on top.
So for example, you might get travel and breakdown insurance thrown in as part of the deal, or in some cases an interest-free or cheaper overdraft.
You have to pay a monthly fee to get these benefits but the idea is the perks all come in one handy bundle via your account.
So packaged accounts sound great, right?
Well, not exactly - as well as paying a monthly fee, you need to be aware of a few things.
Firstly you'll need to work out if the bonuses you're getting are good value compared to buying the insurance separately.
For most of the accounts, you'll be paying around £15 a month (£180 a year), so you could, for example, get cheaper travel insurance, especially if you only go on one holiday a year.
On top of that, the insurance you get with the account might be pretty basic, so make sure the policy will cover you for everything you need - otherwise you could be let down at your time of need.
And while many Brits have enjoyed the benefits a package account brings, lots of bank customers were mis-sold them too.
The Financial Conduct Authority (FCA) found that many of the perks which were packaged with the accounts didn't actually provide cover for customers - banks have a responsibility to make sure the insurance was right for the customer at the point it was sold, while others were "up-sold" the accounts by staff too.
If you think you have been mis-sold one, or you didn't realise you were paying a monthly fee for the benefits, then you should complain directly to your bank.
You can use free tool to do this.
How do I find the best travel insurance?
Travel insurance can be purchased from travel agents and holiday companies when you book, but there is no obligation to take this.
Banks, supermarkets and insurance companies also offer travel cover and a comparison website can help you find the best product for your needs.
You will need to provide the names and ages of all travellers, the destination and any medical conditions.
Results can then be filtered based on the level of cover and the excess you want to pay.
You can also sort policies by price to find cheap travel insurance but check what is covered, as the lowest-cost deals may not always provide the best protection for you.
It may also be worth using an insurance broker if you have more complex needs. You can find a regulated insurance broker on the website.
Also check your current account as some banks may offer travel insurance automatically to their customers, although you should still check what is covered.
Remember, the best travel insurance will depend on your needs.
You need to make sure the best travel insurance company for you and your family provides enough level of cover for the value of your luggage, flights, accommodation plus any excursions.
Additionally, you may also need cover for medical conditions.
Check Trustpilot reviews and ratings based on features and service from independent organisations, such as consumer watchdog Which? and Defaqto.
How can I get cheaper travel insurance?
The main costs associated with travel insurance are your premium and the excess.
You can reduce the premium by offering to pay more excess.
This will lower the upfront costs of your policy but means you will pay more if you need to make a claim.
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You can also make your insurance cheaper by reducing the level of cover.
For example, a policy may give cover for up to £3,000 of luggage, but if yours is worth £2,000 there may be a better alternative product with lower premiums.
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