Guest post written by Mark of Travel Wonders on behalf of cheap.co.uk, providers of travel essentials including travel insurance, car hire and airport parking.
I continue to be surprised by the number of travellers I meet that are uninsured relying on little more than good fortune. Travel insurance typically includes a variety of benefits such as medical and injury expenses, loss of bags, unavoidable interruption to travels, Evacuation and/or medical care in some countries is astronomically priced and no treatment will be forthcoming without up-front payment.
Read the Policy
While insurance policies can appear a little daunting, it is important that you read the terms and conditions before signing or paying for any travel insurance. It is an individual’s own personal responsibility that they have the required coverage for their journey. Check for suitable coverage for the countries on the itinerary, the planned activities, the traveller’s age (policies typically have explicit terms for people over a certain age) and for any pre-existing medical conditions. All the tips below require that the policy is checked carefully - this is one time to sweat the details.
Use a Comparison Site
Avoid taking the travel insurance offered with travel agencies. It is one of the highest margin elements of an agent’s business with large commissions paid by insurance companies and rarely offers good value. Travel insurance comparison sites offer quick and easy contrast between different companies based on price and features. After all, if the agent works out cheaper, you can always go back and take out the insurance.
Insure Early
It is strongly recommended to obtain your insurance early. Though the payment is related to the length of the actual holiday, coverage automatically commences for unavoidable cancellation or delay of your holiday.
Ensure Coverage for Planned Activities
Many policies have exclusions including snow skiing, scuba diving, golf, rock climbing and trekking. Ensure that any planned activities are covered by your policy (even if it costs more) by checking the policy document before signing up. Many policies require that the traveller informs the insurer of the adventurous activity before departure.
Understand Coverage For Costly Items
Ensure that you understand and have desire coverage for expensive single items such as photography equipment, laptops and electronic gadgets. Some travel insurance policies have a single item maximum which can be extended for an extra fee. Some home contents insurance policies also provide coverage for portable goods for an increased premium.
Avoid Excess Car Hire Insurance
Most car hire companies demand an extra fee of $20 to $30 to waive or reduce the outrageous excess on car insurance, often several thousands of dollars. Travel insurance typically pays out the excess on car rental insurance if you have an accident in the rental vehicle.
Multiple Trip Coverage
A number of insurers offer good value for year long coverage for multiple journeys or vacations (as against one year-long holiday). Each journey is typically limited to periods of 30 or 45 days, but can include as many vacations as you wish. If you foresee having more than one break, often including breaks in your home country (read the policy), then take the multiple-trip insurance policy.
Stories on the internet and in magazines are rife of dream holidays spoiled by a failure to insure or by a badly chosen insurance policy. Make insurance an aspect of planning a trip and help ensure that an unexpected event during a holiday is only an inconvenience and not a long term financial disaster.
Photo Credits: stretcher
Friday, December 3, 2010
Seven Tips for Effective Travel Insurance
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22 comments:
Since my health insurance in the U.S. will cover my medical expenses should I get sick in another country (I must pay up front and be reimbursed), and the price of insuring my electronic equipment is so high that it doesn't even make sense, I opt only to have medical evacuation coverage when I travel. My style of travel is different than most, as I am a perpetual traveler with no schedule, so it doesn't matter if my plans have to change. But I do agree that you need to read the fine print very carefully with any plan you select.
Thank you very much for valuable information…Your article is helpful !
One would never know what will happen down the road. This is a great post! Insurance is worth investing on.
@barbara: You sound like you understand your insurance situation well and you do have a slightly unusual travel schedule. I am surprised how many travellers don't understand their situation (are they covered at all, what is covered,...).
@john: Pleasure
@kristina: Thank you
Comparison sites is your way to go, nice share!
The theme of your blog is very beautiful and the article is written very well, I will continue to focus on your article.
Great tips, Mark. I think it's especially important to buy travel insurance for those on expensive trips such as cruises or guided journeys. With elderly parents, I make sure that pre-existing health conditions for immediate family is covered. That way, if I need to leave the trip for a medical emergency, I recoup some of the money.
Nice and informative post.
@liezel, @backpacker insurance, @new delhi hotels: Thank you for visiting
My wife and I are traveling throughout Bali, Lombok and Java for the next 3 months. Your article is very helpful and reconfirms that it is important to have insurance. We are now looking into air vac insurance should anything happen. Knowing that you are covered when you are away from home is a peace of mind.
@thomas Travels bali: I think decent medical coverage is the minimum that anyone should have. Some can do this via their own insurance in the country while others need travel insurance.
The funny thing about travel insurance is that when there are already claims... the insured and the insurance company always has a misunderstanding. The insurer claims this and that which the company denies. The funny thing is that the insurer was not really being able to read the policy. This is sometimes the fault of the insured because they fail to read the whole policy and not really aware of the actual coverage of their insurance.
@sophie: Claims appear at times to be very difficult and at other times, insurance companies seem very accommodating.
One would never know what will happen down the road. This is a great post! Insurance is worth investing on.
It's all about the fine print, especially with electronics coverage. Often the maximum amount covered is well less than the cost of replacement.
Yikes, I hope all those mishaps won't happen to me in one holiday but if they do it's good to be covered
I have had global insurance for 1 year and 2 months since I travel through Asia, Europe and USA. I am very well covered and I never hadve had a problem getting claims paid quickly. It even includes evacuation via helicopter!
@anonymous: Electronic coverage is often poor but it is important to understand what is and isn't covered.
@heather: Insurance is one of those things that no-one wants to have to use.
@steve in bali: Sounds like you have a good arrangement in place.
Anyone who is planning for a trip in a foreign land and wants to do some backpacking adventures should consider the risk involved such as stolen luggage, calamities and adversities in the destination countries, accidents and hospitalization, travel cancellation, and legal problems overseas. The years of savings for the most awaited trip can just vaporize in seconds.
@richard: Well said - insurance covers a multitude of issues - just understand what you are and aren't covered for.
Each one had different thinking about travel insurance. I always ignore it but this post updates me about the importance of the insurance and i will look forward to travel insurance for sure.
@villas majorca: It is a personal decision and one that different people have a wide range of views. To not have cover for emergency medical and evacuation is to potentially run a risk with your life.
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