Coming from a family of modern nomads, one of the first adages I remember my mother coming out with was “If you cannot afford travel insurance, you cannot afford to travel”. I’m very thankful I’ve never had to use my travel insurance, but there are plenty of things that can go wrong on a trip and it’s always good to know that you have a way to get back on the road if big or small disasters strike.
For international travel, your policy should cover the following things:
– Medical
– Travel delays
– Trip cancellation and resumption
– Lost/stolen possessions
– Personal liability
– Emergency evacuation
MEDICAL
There’s nothing worse that being sick on holiday, and even a visit to a GP can be pricey. Make sure your policy covers treatment and replacement of everything you could possibly need, particularly if you have special needs like medical equipment, prescription medication, or glasses. If you’re travelling in civilised areas, you want to be treated in the best hospitals. If you’re travelling in third world countries, you want to be flown to a developed nation for treatment. It may sound extreme, but you really don’t want to see the inside of a hospital in Denpasar.
TRAVEL DELAYS
Insurance for travel delays should cover any expenses that arise from your scheduled transport being delayed or cancelled, such as emergency accommodation and finding another flight. It should also cover the costs if those delays prevent you from attending a special event, such as a concert or a wedding, by either refunding the cost of the event tickets or helping you get there faster.
TRIP CANCELLATION AND RESUMPTION
This will cover you if for any reason you need to return home early, such as illness or a death in the family. Check carefully to see which reasons are and are not covered by your policy. It should also cover the cost of resuming your trip once you are able.
LOST/STOLEN POSESSIONS
Thieves make off with cameras. Airports lose baggage. Wallets get left on the bus. Any one of these could spell financial disaster if you don’t have insurance. Check your policy for the fine details of what it covers. Most will cover travellers cheques, but provide limited (if any) cover for lost or stolen cash, and many have an upper limit on the value of what can be claimed in lost baggage. Usually this is enough cover your clothes and toiletries, but if you are carrying expensive items such as jewellery, laptops or PDAs, cameras, sporting equipment, or gifts, you will need list them separately when you apply for insurance and you may have to pay an extra premium to have them covered.
PERSONAL LIABILITY
Personal liability pays if you are sued for damages for example, if you are in a motor vehicle accident which injures another person or damages property, and associated legal costs. Be careful, as whilst it’s where you’re most likely to get into trouble here, some policies may not cover vehicle accidents at all. It must be an accident though nothing will help you if you were truly on the wrong side of the law.
EMERGENCY EVACUATION
Sometimes bad things happen. Sometimes REALLY bad things happen. When they do, you want to be on the first plane/train/bus/boat out. Most insurers are pretty good about accidents and natural disasters, but will not touch war or anything that even vaguely resembles war. This includes civil unrest, riots, and terrorist attacks. Other exclusions are anything resulting from chemical and nuclear material, disease outbreaks (most notably bird flu), and anything for which a travel advisory had been issued. In these instances, you’ll get more help from your embassy than your insurer.
WHY DO SOME COUNTRIES COST MORE THAN OTHERS?
The simple answer? Some countries are riskier than others. Insurance companies however measure this risk in two parts how likely you are to need your insurance and, more importantly, how much it’s going to cost if you do. Have you heard the horror stories about $200k bills for medical treatment in the US? Imagine finding yourself there without so much as a Medicare card, and you realise why the US is always in the most expensive category. By comparison, the $20k it might cost to evacuate you from Fiji to Australia is relatively cheap.
OTHER THINGS TO CONSIDER
– Local cover is available for trips within your home country. It won’t include medical but it should cover lost luggage and delays or cancellations.
– If you have a pre-existing illness, no matter how insignificant it may seem, always disclose it on the application. Most companies will still cover you at the same or very slightly higher premium, but if it comes out when you need treatment you can lost your cover altogether.
– Look for cover that pays your expenses immediately. Some do, but others require you to pay then claim the money back when you get home.
– If you plan on participating in any sporting activities on your trip, such as skiing or scuba diving, make sure your policy covers these.
– Read the travel advisories regularly. If there is advice against travelling to a particular country or region, you may lose some or all cover by going there.
– Have fun. The best insurance is the kind you never had to use.