How to Choose the Best Travel Insurance Plan

[Simon Hopes]

More and more people are beginning to realise that travel insurance is a very important part of any comprehensive plan to have a fun, healthy and successful trip. Plans vary greatly when it comes to what they do and do not cover, but most people will definitely find a plan that fits their needs perfectly. The risks covered by travel insurance plans are very significant, and having coverage would be a very big mitigating factor to those risks. Accidents, emergency evacuation, terrorism, bankruptcy on the part of the travel company, theft and even the transportation of one’s body back home in the event of death are covered.

The potential loss that travellers are exposed to also varies from person to person, depending on a variety of factors including their age and health status, the location they are traveling to, whether or not their air tickets are refundable, the value of their luggage, the financial health of the tour company or airline and how much they have already prepaid for services during the course of the trip. Another important consideration is the coverage that a person might already have through other forms of insurance such as medical insurance, homeowners and renters insurance or even through their credit card.

Basic Features of Travel Insurance Plans

Travel insurance plans vary greatly when it comes to the exact types of coverage they provide. However, there are some basic aspects likely to be found in just about any plan that you are considering. Older people are particularly in need of coverage, so consider checking Medical Travel Compared if you are over 50 and...

Medical expenses cover is fundamental. Even though the exact maximum amount that your plan will cover will definitely vary among different plans, cover for medical treatment should definitely be present in any plan you are considering purchasing, to cover the costs of certain medical and surgical treatments. However, you must ensure that you pay close attention to the details to be certain that treatments are covered, as well as any other terms that would affect a claim, should you make one eventually. One common term is that any medical treatment that can wait until you get back home to be treated is exempted from being claimed for under the plan.

Medical repatriation or evacuation is another very important aspect of travel insurance coverage. This particular part of a plan will cover the costs of getting you back to your home country in the event of an emergency.  The mode of evacuation might differ, depending on the particular circumstances in which you are. Again, a common term that is usually found in the contract is that if the treatment can wait till you get back home, it will not be covered under the plan.

Trip cancellation or missed departures are also very essential in any travel insurance plan. In the event that you have to cancel or shorten your trip, you will be able to get reimbursement for any travel and accommodation costs that you have paid and which you cannot recover in any way. If you miss a departure in a plane, boat or train due to factors that were completely outside of your ability to control, then you will be reimbursed for the costs of additional transportation and accommodation. You will have to provide proof to substantiate your claims as to why you missed your departure, so you should do your best to get some sort of documentation regardless of what caused the delay. For both of these, you should be sure to check the terms and conditions thoroughly in order to understand them fully.

Baggage and personal liability coverage are also commonly found in travel insurance plans. They cover you in the event that you lose your baggage or if it is stolen or destroyed, and if you are liable for having caused damage to someone’s property or causing injury to another person. Baggage cover usually provides for limits for individual items, and you will also be expected to report any loss as quickly as possible.

Optional Features of a Travel Insurance Plan

After the features that usually form the skeleton of travel insurance plans, there are other aspects of plans that are not as commonly included, but which you might want.

Money and cash coverage is provided in some, under which you will be reimbursed within a certain range of loss in the event that your cash or money equivalents such as traveller’s cheques or prepaid tickets are lost, damaged or stolen. In order for your claim to be payable, you will have to have made a report to the local police within a specified time (usually 24 hours) and received a report from them regarding the incident.

Terrorism coverage will cover any medical costs that you might suffer in the event of an act of terrorism, and it might also cover baggage damage or loss. Loss of passport coverage is also a desirable addition, and it will provide reimbursement for additional travel and accommodation expenses that you incur as a result of having to replace a lost passport. You must have receipts in order to be covered.

Things to Keep in Mind

Consider overseas days and trip durations. Travel insurance plans usually place a limit on your cover based on the amount of time you spend outside the country during the period of cover and the length of each individual trip. Ensure that you properly forecast and calculate how often and for how long you are likely to travel within the period, so that you are not stranded without insurance cover at some point in time while beyond the shores of your home country.

It is also important that you get into the habit of getting and keeping the receipts for every single expense that you incur. You might not know that you will need to claim for something at the time you paid for it, so it’s simply better to keep all the receipts until you’re certain.