Backpacker Insurance

Nobody plans to be ill or have an accident, especially on the trip of a lifetime, but it does happen and if it happens to you, this will cover the expensive business of getting treated overseas. In most cases that includes dental emergencies and repatriation – the cost of having to fly you back to the UK if necessary.

On a slightly more morbid note, most policies cover cremation costs or the repatriation of a body should you, or someone else covered under the policy, die during your trip.

If you can no longer go on your travels, or need to come back early, your backpacker policy will cover cancellation of the trip. However, you'll need a valid reason to abandon your trip before insurers will pay up.

Each insurer will have its own list of valid reasons, which usually include losing your job or serious illness in your family. But, if you have a change of heart or simply get homesick, your claim will probably be rejected.

Unlike standard travel policies, some backpacker insurance even covers failure to pass university exams as a reason for cancellation.

Your backpacker policy will also cover you if your gear is lost, stolen or damaged while you're travelling. Almost everything you take overseas, including computers, phones, cameras and clothing is included. Many insurers will also cover you for the loss of a passport, cash or a driving licence.

However, policies can vary greatly both in the amount covered and in the excess – the amount you have to pay towards the claim yourself. For example, items such as cash or expensive goods can be subject to an additional higher excess.

Personal liability protects others and their property from accidents you may cause on holiday. For example, the personal liability element of your insurance would cover you if you inadvertently injured a fellow traveller. Insurers will typically cover you for up to £2 million, which should be more than enough.

Unfortunately travel schedules are at the mercy of the elements, so delay cover is one of the more important reasons for taking out backpacker insurance. Most policies cover against more than just bad weather though, with many including incidents such as industrial action and mechanical breakdown.

If your flight's been delayed for more than three hours or it's been cancelled you may be able to claim compensation of up to £470 directly from the airline, but the reason for the delay or cancellation must be the airline's fault, so bad weather, for example, won't count.

This compensation is only for EU-regulated flights. An EU flight is where the flight departed from an EU airport, regardless of the airline, OR where an EU airline landed at an EU airport. Under this law, EU airports also include those in Iceland, Liechtenstein, Norway and Switzerland. See our Flight Delay Compensation guide for more info.

If this doesn't apply – perhaps because you flew both to and from an airport outside the EU – you could try making a claim on your travel insurance policy. Insurers typically pay out for each 12-hour period you've been delayed, but the payouts are often tiny compared with what you can get from your airline.

Some backpacker insurance will allow you to do certain types of paid or unpaid work abroad – and pay out if you need to make a claim because of an incident while in employment. Typical casual backpacking jobs such as bar and restaurant work, fruit picking or playing music will normally be covered.

Some policies will also cover teaching posts or coaching sports in paid or voluntary roles. Manual labour, such as construction jobs, is usually excluded from paid work but may well be allowed for voluntary work. However, even volunteers will probably not be covered while using machinery.

What is allowed differs from policy to policy, though, so check the cover you're considering fits with your work plans.

Alcohol- or drug-related injury
Backpackers are bound to let their hair down and some destinations are notoriously hedonistic, but beware because insurers are not going to cover you for drunken pranks or drug-fuelled adventures.

If an insurer suspects you were under the influence of non-prescription drugs or were over the alcohol limit when an accident happened, they may well refuse to pay your claim. Even if an accident happened on an organised activity, like a boat trip or a bungee jump, if you're high as a kite, or even just had one too many beers, your policy could prove worthless.

Insurers have different classifications of 'drunk', with some using blood alcohol limits, so check the policy carefully before you buy.

Pre-existing medical conditions
Insurers will often cover you if you have a pre-existing medical condition, though if you fail to tell your insurer and then need treatment for that condition, or a related condition, you won't be covered. You may also struggle to get a claim paid if you ignore medical advice on medication or jabs required to enter a country or region. So, if you go to Kenya and decide against getting jabs for diphtheria, hepatitis A, poliomyelitis, tetanus and typhoid, do not expect your insurer to foot the bill if the worst happens.

Unattended possessions
Backpacker insurance will cover your personal possessions when you're travelling. But it doesn't mean you can be gung ho with your stuff. If you leave items unattended and they're stolen, your insurer won't pay for their replacement.

Travel to dangerous countries
The Foreign & Commonwealth Office (FCO) outlines which countries are unsafe for travel. If you travel to a country on the FCO's list your cover is likely to be invalid. Check out the FCO's current travel advice for more.

While you may go on your annual holiday with suitcases bristling with iPads, phones, laptops, luxury gadgets and cameras, a year trekking around the world with just a bag on your back means you physically won't be able to carry 'em all with you.

As well as freeing up extra room (and weight) in your luggage, the fewer goods you carry, the lower your risk of losing them or having them stolen. Hotels, campsites, hostels and other accommodation also increasingly offer internet access via a rented tablet or computer in your room, giving another reason to leave your electronic kit at home.

And apart from the benefit of reducing your security risk, if there ever was a chance to get away from a computer screen, a gap year must surely be it...

Your best bet is to deter opportunistic thieves or outwit them. In many cases, a robust padlock can help. You don't have to spend £50 on a specialist lock; for roughly £10 you can buy a single chunky padlock or pack of three 'digit combination' locks.

Before leaving, tell your bank and credit card provider that you plan to be overseas for some time – and, if you can, where you'll likely be for certain periods.

The more info you give your bank, the better; banks keep a close eye on suspected fraudulent use and will kibosh a card if they think it's been stolen.

While it only usually needs a quick phone call to reactivate a frozen card, this might not be possible if you're stuck in the middle of nowhere.

Jot down the following and keep them in a protected folder in the luggage:

• Bank/credit card 'lost and stolen' numbers on a piece of paper.
• Family's and friends' numbers – in case you don't know them off by heart and your phone's lost or stolen.
• The British consulate in the countries you're visiting.
• Your travel insurance claims number.
• Local emergency numbers in the countries you're visiting, eg, 999, 911.