Travel insurance: selecting the right cover
April 20th 2010 16:11
Category: No Category
Ok, so we know why we should take travel insurance - there are so many different companies and policies out there, which one should I choose?
If you ever have tried to purchase any sort of insurance you would know that there are so many companies and different types of policies available at different prices, sometimes it can be overwhelming and confusing trying to choose one.
I am not going to tell you which companies are better than the others, because this is more about personal preference. However, it is important to consider the following when considering travel insurance:
1. What exactly does it cover?
Get a full product disclosure statement from the insurer and read it through. At the most basic it should cover you for:
- cancellation and amendment costs due to unforeseen circumstances (before AND after departure);
- medical and dental while travelling;
- loss and damage to luggage and travel documents;
- personal liability.
Of course, depend on the nature of your trip, you might also need to make sure they have the following to have you fully covered:
- rental car excess cover;
- ski/snow sport cover (generally not covered by a normal insurance policy);
- travel service provide insolvency cover;
- Carer cover (if your travelling companions are affected by a situation which result in you having to stay back as well);
- travel delay allowances;
- special events;
- disability/accidental death cover.
2. Make sure the insurance policy comes with specific details of the process of cover:
- do they have a 24-hour emergency assistance line?
- do you have a contact number if you have any questions about your policy?
- have you been given instructions of what to do with your claim should you need one? (what do you need to keep? What are the conditions?)
- do they cover damages caused by forces of nature and acts of terrorism?
Make sure you have all your questions answered before you purchase your policy.
3. If a policy looks cheap, it most possibly is cheap.
There are plenty of internet based policies out there that can be sometimes 50% cheaper than one offered by a major company/organisation. Ask why. It is wise to collect a couple of policy statements and compare them. Look at the fine prints. There is one policy out there (I am not going to name names) that states that it does not cover 'accidental dental work nor dental work caused by deterioration' - can you name one type of incidental dental work that isn't one or the other?
4. Credit card travel policies
Some credit cards come with free travel insurance. Once again, compare them. Go to the bank/financial institution and ask for a copy of the policy statement that comes with the credit card (not the one they sell) - check everything. Some credit cards have clauses that the entire travel has to be purchased on the credit card (including meals you had during your trip) otherwise you cannot claim on it. Be careful of clauses like these. Sure you might try to purchase most things on the credit card, but just say one particular day you buy something to eat off the street vendor (the bank can't check that thoroughly right?) and happen to get sick from this particular meal. If the clause is there, and you haven't purchased this meal on the credit card.. You are not covered.
A couple of credit cards out there do have good policies. Just have to look out for them.
One thing about credit cards though. Really, the insurance isn't free. You are paying the credit card an annual fee, and those that comes with free travel insurance generally has higher fees than others, therefore, you are really paying them for a service that you occasionally use. And then, most travel agents and online agents have a credit card transaction fee. Just so you can claim on this insurance you are actually paying more for your travels than other people. Sometimes all these fees add up to be a lot more than simply buying a better travel insurance policy. Why not just buy an insurance policy?
5. Think about taking an excess
If you think a particular type of policy is too expensive, ask about raising the excess of the insurance to make it cheaper. Most of us probably don't bother claiming small claims when we do incur extra costs on our trip. So if you are only getting travel insurance to cover for major incidents, why not take out an excess which will lower your premium cost? Excesses up to $250 can save you a good $100 off a premium insurance cost.
6. Frequent travellers will save with annual multi-trip policies
Just like everything else, bulk purchase is always going to save you money. If you travel to one region for more than twice per year, you may want to consider purchasing an annual multi-trip policy. These policies are designed to cover travellers for one region of the world, up to a certain number of days of travel for unlimited number of trips, for one cost.
It is complicated. That's insurance for you. But having the right insurance can give you a peace of mind, knowing that you won't be out of pocket when something major happens.
If you ever have tried to purchase any sort of insurance you would know that there are so many companies and different types of policies available at different prices, sometimes it can be overwhelming and confusing trying to choose one.
I am not going to tell you which companies are better than the others, because this is more about personal preference. However, it is important to consider the following when considering travel insurance:
1. What exactly does it cover?
Get a full product disclosure statement from the insurer and read it through. At the most basic it should cover you for:
- cancellation and amendment costs due to unforeseen circumstances (before AND after departure);
- medical and dental while travelling;
- loss and damage to luggage and travel documents;
- personal liability.
Of course, depend on the nature of your trip, you might also need to make sure they have the following to have you fully covered:
- rental car excess cover;
- ski/snow sport cover (generally not covered by a normal insurance policy);
- travel service provide insolvency cover;
- Carer cover (if your travelling companions are affected by a situation which result in you having to stay back as well);
- travel delay allowances;
- special events;
- disability/accidental death cover.
2. Make sure the insurance policy comes with specific details of the process of cover:
- do they have a 24-hour emergency assistance line?
- do you have a contact number if you have any questions about your policy?
- have you been given instructions of what to do with your claim should you need one? (what do you need to keep? What are the conditions?)
- do they cover damages caused by forces of nature and acts of terrorism?
Make sure you have all your questions answered before you purchase your policy.
3. If a policy looks cheap, it most possibly is cheap.
There are plenty of internet based policies out there that can be sometimes 50% cheaper than one offered by a major company/organisation. Ask why. It is wise to collect a couple of policy statements and compare them. Look at the fine prints. There is one policy out there (I am not going to name names) that states that it does not cover 'accidental dental work nor dental work caused by deterioration' - can you name one type of incidental dental work that isn't one or the other?
4. Credit card travel policies
Some credit cards come with free travel insurance. Once again, compare them. Go to the bank/financial institution and ask for a copy of the policy statement that comes with the credit card (not the one they sell) - check everything. Some credit cards have clauses that the entire travel has to be purchased on the credit card (including meals you had during your trip) otherwise you cannot claim on it. Be careful of clauses like these. Sure you might try to purchase most things on the credit card, but just say one particular day you buy something to eat off the street vendor (the bank can't check that thoroughly right?) and happen to get sick from this particular meal. If the clause is there, and you haven't purchased this meal on the credit card.. You are not covered.
A couple of credit cards out there do have good policies. Just have to look out for them.
One thing about credit cards though. Really, the insurance isn't free. You are paying the credit card an annual fee, and those that comes with free travel insurance generally has higher fees than others, therefore, you are really paying them for a service that you occasionally use. And then, most travel agents and online agents have a credit card transaction fee. Just so you can claim on this insurance you are actually paying more for your travels than other people. Sometimes all these fees add up to be a lot more than simply buying a better travel insurance policy. Why not just buy an insurance policy?
5. Think about taking an excess
If you think a particular type of policy is too expensive, ask about raising the excess of the insurance to make it cheaper. Most of us probably don't bother claiming small claims when we do incur extra costs on our trip. So if you are only getting travel insurance to cover for major incidents, why not take out an excess which will lower your premium cost? Excesses up to $250 can save you a good $100 off a premium insurance cost.
6. Frequent travellers will save with annual multi-trip policies
Just like everything else, bulk purchase is always going to save you money. If you travel to one region for more than twice per year, you may want to consider purchasing an annual multi-trip policy. These policies are designed to cover travellers for one region of the world, up to a certain number of days of travel for unlimited number of trips, for one cost.
It is complicated. That's insurance for you. But having the right insurance can give you a peace of mind, knowing that you won't be out of pocket when something major happens.
| 77 |
| Vote |
subscribe to this blog