Travel Insurance is one of those things that either get into use or is a waste of money. But, it’s also one of those things that make the difference between an unforgettable travel experience and a nightmare that you never want to go through again – ever.
People are quite negligent when it comes to travel safety simply because they don’t know what to expect, or they have never had an accident during travelling before. Think of this: what is the chance to have your luggage lost or stolen? Or, to break a leg while skiing or hiking? The chances are huge.
“Regardless of whether you travel overseas regularly, infrequently or on a once-in-a-lifetime trip, travel insurance is essential and can well mean the difference between fantastic and disaster,” Steve Mickenbecker, head of research at Canstar Cannex, said. “Cancelled reservations, lost luggage, diverted flights, missed connections, bad weather and illness or accident can turn your well deserved holiday into a horror story.”
So, if you are thinking of spending hundreds (or more likely thousands) of dollars for a trip to another country, why wouldn’t you invest a couple of hundred more and secure your travel and fun?
Travel insurances are available both online and at physical locations, as the online version is the cheapest.
Some people prefer face-to-face experience and go to insurance agencies. They might be a little more expensive, but they sure guarantee more personalized service and insurance that best fits your needs.
Other people have travel insurance through their credit cards which are usually platinum or gold and not everyone has those.
“Surprisingly, premium credit cards offer very comparable travel insurance. A platinum card may cost you roughly $200 in an annual fee and you’ll get free travel insurance,” Harry Senlitonga, a financial analyst at Datamonitor in Sydney, said.
The most important thing people need to know when choosing their travel insurance is, however, its coverage. That’s why sometimes it’s recommended that you go to an agency and let them choose the right one for you, in case you don’t know how to search for one.
“If you don’t take out adequate travel insurance before you set foot out of Australia, you have rocks in your head,” Mr Mickenbecker said.
If you do it yourself, after all, always read the insurance closely – with attention to the greatest detail. You don’t want to get the insurance that excludes the activity which you are going on a trip for. On the other hand, you will not find an insurance that covers every single thing during the travel, so you have to determine your priorities according to the activities you will be partaking in.
Here’s a checklist that might help you sort out the most important points you need to watch out for:
Do you have an unlimited cover where it counts – overseas medical, hospital, ambulance, emergency dental expenses? Also, is the medical cover adequate for possible expenses in the country you are visiting?
Are you covered for emergency repatriation or evacuation? Do you have 24-hour emergency assistance? A team of experts who can help you with advice when you need it most is extremely valuable.
What excess fees are involved? Read the product disclosure statement carefully to make sure you are aware of any excess and where it may apply.
Are your travel documents, credit cards, and cash covered? A good policy will cover the replacement costs if lost or stolen.
Are you covered for activities you may participate in on your holiday? There are activities that are excluded from many policies or may require an additional premium to be paid, such as snowboarding, surfing, and bungee jumping.