Protect your pocket on holiday: five top tips

You’ve bought the perfect bikini, sorted your seaside wardrobe – and you’ve even remembered your toothbrush! But have you remembered to take these five essential holiday steps?

When you’re planning a holiday, it can often seem as though there are a million things to do before you jet off on your break.

Everything from checking your children have valid passports to considering the strength of your sun cream takes time – but some travel preparations are more important than others.

In this article, I outline five things every smart holidaymaker should have at the top of their to-do list…

1. Ensure you have an EHIC
If you ever travel within the European Union, it is worth signing up for a free European Health Insurance Card (EHIC).

The EHIC entitles you to the same level of state-provided healthcare that a resident of any country it covers would receive. Carrying one will allow you to access emergency medical care should you need it while you’re away.

It’s important to be aware some countries require residents to contribute financially to the medical care they receive. This means you may have to pay some money towards any treatment you claim under the EHIC scheme (although you may be able to claim back these costs from the NHS later).

An EHIC is not a substitute for travel insurance, as many of the mishaps you may encounter (lost baggage, accidents and stolen property) are not covered. It’s also worth noting some insurers now require that you hold and EHIC before they will provide you with cove for medical expenses abroad.

However, the EHIC does provide a valuable safety net for anyone planning a holiday in Europe. It’s quick and easy to apply for one online.

2. Consider your currency
In my youth, I always managed to find the perfect swimwear and sandals to take on holiday – yet never made time to buy foreign currency before the day I was due to fly out.

Looking back on it, this was loony behaviour. Airport exchange booths rarely offer the best rates on currency, so you’re likely to get less dollars, euros or yen for each pound you pay out.

Tracking down a great deal on foreign currency can seem complicated. Don’t be blinded by the claims companies make about the commission they do (or don’t!) charge or the rates they offer – simply ask how much currency you will get in exchange for the pounds you can afford to change.

Also, it is worth planning the purchase of your currency in advance.

Often, buying it online and having it delivered to your home will be the cheapest – and, coincidentally, easiest! – option.

3. Pick the perfect plastic
Using the wrong credit card while abroad could see you ramp up the total sum you spend – and for no extra benefit!

Many credit and debit card providers levy extra fees on transactions when you use them overseas. Typically, companies charge a conversion ‘load’ (fee) of around 3%, meaning every £100 spent on your card could cost you £103.

In addition, you may be charged an extra fee (and extra interest) for withdrawing cash from a foreign hole in the wall, and some dastardly debit cards levy a flat transaction charge every time you buy something in another country.

On their own, none of these charges sound too forbidding – but after a fortnight of spending on your flexible friend, they could leave you with a horrible financial hangover.

To avoid them, apply for a vacation friendly credit card such as the Post Office Credit Card.

While it will still charge a fee and whack you with heavy interest charges if you use it to withdraw money from a cashpoint, normal spending on the card will be free of overseas charges – no matter where in the world you are.

4. Prepare for the worst
It might not bear thinking about, but it’s worth considering how you would cope if you were the victim of crime – or just plain old back luck – while away.

Take the precaution of reading up on the area you’re visiting before you head off on holiday to ensure you don’t take unnecessary risks.

When it comes to carrying cash, only take out with you the money or Travellers’ Cheques you’ll need for that day, leaving the rest in your hotel safe. You may also want to invest in a money belt, which could help protect you from pick-pockets.

It’s a good idea to note down the numbers of the banks and credit card providers whose cards you take abroad in case they are stolen. Having these to hand will mean you can cancel missing cards quickly and easily, which should help you avoid falling prey to fraud.

Similarly, it’s a good idea to take photocopies of all your travel documents and keep them – along with the address of the local British Embassy or High Commission – somewhere safe (separate from the originals). This way, if you lose your passport, you should still be able to get home.

5. Get the correct cover
Finally, it’s important to ensure you have adequate travel insurance in place before you head off on holiday.

A good travel insurance policy should cover lost or stolen possessions and should also allow you to cancel or cut short your trip if you need to (depending on your circumstances). It’s also likely to cover cancelled flights – an unfortunate experience many holidaymakers have had recently, thanks to the swine flu outbreak.

Travel insurance also offers protection from potentially huge medical and repatriation costs. Suffering even a minor illness abroad could see you slapped with a bill for thousands of pounds if you don’t have insurance in place (read this article to learn more).

Finally, when you buy a travel insurance policy it’s crucial to ensure it provides you with all the cover you need.

Remember: an individual planning a bungee jump will need more cover than someone planning to laze around on the beach!

**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**