There’s nothing like fine print and legal language to
put a dampener on a spontaneous adventure, but many argue that if you can’t
afford travel insurance, you can’t afford to travel.
They have a point, even though finding the best policy
isn’t always easy. Travel insurance exists to protect a traveller’s investment
in their journey and ensure they don’t lose out, and get medical help, if
things go wrong.
Whether you lose your luggage or have it stolen, get
Delhi belly or tick-borne encephalitis, you need to know you can get help
(without a stiff medical bill at the end of it). And that's where insurers come
in.
Choosing a suitable policy will give you peace of
mind. At best, it could save your life. So when considering which policy is
right for you, it pays to look at the details.
What
could it cost me to travel uninsured?
In the event of serious injury or illness, insurance
payouts can run into hundreds of thousands of US dollars. An uninsured
Australian injured in Alabama will end up at the mercy of the expensive
American healthcare system. If you consider a Canadian bitten by a rabid dog in
Rwanda or British backpacker needing an airlift out of the Himalaya, the
benefits of travel insurance are clear.
High prices don’t always mean the best coverage. List what
aspects of a policy are important to you. It’s pointless paying a premium to
reduce car rental excess if you can’t drive, or covering your luggage when all
you have is a backpack full of dirty socks and a dodgy mp3 player. Removing
options or lessening limits often reduces the premium you pay.
What
needs to be covered by my travel insurance?
We believe emergency medical coverage is most
important. Insurance policies vary, so read the fine print carefully to see
exactly what is covered. Certain pre-existing medical conditions that increase
the likelihood of a claim may be excluded.
If you have a heart condition or
terminal illness, you may need to provide additional information before you can
be offered a policy. Sporty people, off-piste skiers and bungee jumpers should
check if their activities are covered. And injuries occurring during
professional sports are generally not covered.
Insurance premiums are calculated based on your
origin, age, destination and duration of travel, with the world divided into
different zones. When travelling to countries like the USA, where health
insurance is a multi-billion dollar industry, or to less developed countries
with a lower standard of healthcare to which you’re accustomed, look for a
policy with a high level of cover.
Some providers will offer ‘unlimited’ medical coverage
for a higher premium, while a cheaper policy might cover up to US$10 million.
The highest claims paid globally run into millions of dollars, but are very
unlikely to run into the tens of millions.
Other
things to consider
Will a provider airlift you home? Do they have doctors
on the staff of their emergency hotline? Will they pay to fly your family to
you if you’re unable to be moved? Read the fine print and choose what suits
your needs.
Reciprocal
healthcare agreements
Some countries have reciprocal healthcare agreements
with others, meaning that if you’re from a participating country and travelling
in another, you’ll be entitled to free or subsidised public healthcare to the
same standard enjoyed by residents. Participating countries include (but are
not limited to) Australia, New Zealand, the UK and Ireland; Sweden, Norway and
Finland; Italy and The Netherlands.
Refer to your government’s traveller information
homepage for details, noting that any reciprocal coverage will not be at the
same level as facilitated by travel insurance. And if you're an EU citizen,
don't forget to carry a European Health Insurance Card to entitle you to
cut-price or free state-provided healthcare in EEA countries and Switzerland.
Are
your belongings covered?
Next, confirm how your luggage is covered,
particularly for theft or damage. Are there individual item limits? What are
they? Are electronic devices included? Is theft from inside a car excluded?
What if your iPod falls in the Trevi Fountain? If anything is unclear, phone
your provider – insurers are legally obliged to unravel the fine print in
simple terms.
Important
inclusions for your policy
The other essential heavyweight inclusions to
investigate are:
Cancellation. You can often nominate the amount of coverage in the
event that something prevents you from travelling - this should equal the full
cost of your trip and any extras, but the higher the amount, the more expensive
the policy becomes.
Travel
delay. Count on at least
US$250 per day, and look for exclusions relating to strikes, natural disasters,
war and terrorism. But don't expect to be showered with cash for a couple of
hours spent sweating on a grounded aircraft: you are unlikely to be covered for
delays less than 24 hours if it's the airline's fault.
Airline
and end supplier insolvency. If
the people who took your money go bust, ensured you're covered by US$10,000 and
then some. This is a relatively new addition to some policies, so you might
have to shop around for this one.
Personal
liability. In case someone
trips on your carelessly placed luggage, injures themselves and sues you for
damages, you'll need to be covered. Look for policies that offer somewhere up
to US$2 million in cover. Remember you are up for compensation of medical bills
and ongoing treatment, not to mention any medical bills.
Car
rental. Travel insurance
usually won’t cover the full cost if you’re in an accident in a rental car,
even if it’s not your fault. It can help with the excess (the amount you’re liable
to pay), but you will need to take out the compulsory insurances provided by
the car rental company too. Look out for the excess and if you can reduce it
(US$5,000), damage (US$50,000-plus) and liability (US$1 million) in the rental
insurance and compare this with the limits and what’s covered under your travel
insurance policy so you won’t be out of pocket. Something to keep in mind – the
travel insurance cover for personal liability usually excludes motor vehicle
usage, so make sure you’ve got the right cover with your car rental company for
third party liability.
If
accidents happen
When travelling, keep the emergency number close. If
you need medical help, seek treatment urgently. If you can’t call for help,
someone will find the number on your person so make sure you keep a copy of
your Certificate of Insurance on you, just in case. If your situation is not
medical in nature, it’s always best to phone the provider anyway, and they’ll
advise their protocol.
Making a claim back home is generally straightforward
- you’ll need to submit some forms, so keep receipts, get police reports,
evidence - everything you can to support your claim. If the claim is
investigated and accepted, you should normally be reimbursed within a few
weeks. If not, an appeals process is always available.
With some careful investigation, travel insurance
doesn’t need to cost the earth. Shop around, get insured, keep your details
close at hand, and hopefully you'll never need them. But if you twist your
ankle in a Barcelona ballroom or get bitten by a Bornean snake, you'll be very
glad to be covered.
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