Everything You Need to Know Before Buying Travel Insurance
That one time I broke my leg in Cambodia…
You can probably guess with the direction this post is going that, I was not under travel insurance during that time.
TRUE story.
My options were to either spend 13 days with a broken ankle in Siem Reap. Or pay $2500 out of pocket to get home tomorrow.
You can bet, I’m a firm believer in always covering my ass now. For the full story on what happened in Cambodia. Read here.
Ah, the lesson(s) I've learned...
I used to be the bloody definition of “traveller on a budget” especially in my early 20’s.
When it came to travel insurance. I often skimp out. What a waste of money if didn’t use it?!
Let’s just say, I don’t think that way anymore. What is more valuable than your health? $200-500 for (peace of mind)… No question, it’s totally worth it.
So, what should you look for? Where should you go to buy?
Travel insurance is designed to cover unexpected medical emergencies and events such as trip cancellation, your personal assets, and any financial losses due to unforeseen circumstances DEPENDING on your policy.
Let’s hope you never use it, but, I guess that’s the point right?
How you can save some money when choosing your provider
Buy direct and online
Travel agents and airlines can get a huge commission from insurers for selling policies, sometime even up to 50%. That’s insane, don’t give it to them! Seek out an insurance company directly.
Travel in a group
If you’re traveling with coworkers and friends, it would be in your best interest to purchase one policy instead of per individual.
Customer loyalty
Check your current insurance providers (car/home) see if they can offer discounted rate for travel.
Credit Cards
Read the fine print. Contact your bank and ask for the full disclosure, on what your insurance covers through your credit card. I know mine is good for 14 days of travel. If your trip is going to be longer than the time noted, be sure to purchase extended insurance (obvi)
Most Important considerations to think about before deciding on what policy works best for you
Amount of premium
Are you paying for the right coverage or can you upgrade/ downgrade as you need to, for something that you’re more comfortable paying for?
Under the influence
Many policies will be null and void if something happens while you are under the influence of alcohol or drugs.
Extent of coverage
Does the policy cover only the medical expenses incurred abroad, or can you also obtain reimbursement for medical treatment continued in your home country?
Available upgrades
How much will it cost to extend the insurance to your baggage? How much to include items that you might buy abroad, such as furniture or paintings?
Payout time and requirements
Does the contract require you to submit a written report of the incident within a reasonable time? What supporting documents are you supposed to attached to your claim?
What typically is never covered
Sport and adventure activities with a high risk
Travel to high risk countries
Pre-existing medical conditions.
Hot Tip: Choose a travel insurance policy with the LEAST exclusions, and pay attention to them when reading an insurance policy.
Read the fine print and always ask questions.
Traveling during a pandemic?
COVID TRAVEL INSURANCE UPDATE
Complications with health and safety during travel just got so much deeper…
These are the two types of travel insurance you can buy after the pandemic
If you're going to travel, it's not a question of if you need insurance, but what kind.
"Cancel for any reason" travel insurance.
It costs between 10% and 12% of the price of your vacation, and it will refund part of your travel costs if you decide to cancel.
"Named perils" travel insurance.
This is the more common kind of travel insurance. It's less expensive (7% to 9% of your trip cost), but as the name implies, it only covers the perils named in the policy. And a pandemic is probably not included. so keep this in mind when you buy.
Policies to look out for in travel insurance after the pandemic
Medical issues
Q’s to ask "Will you be covered only if treated at the local hospital?"
"Will it cover transport to the nearest appropriate facility and the treatment for sickness/injury”
Also, consider air medical transport. Make sure health evacuations are a part of your policy.
A future pandemic
Generally, epidemics and pandemics aren't covered!!! Don't bother trying to get coverage for a pandemic during a pandemic the sad reality — it will not happen.
Most major travel insurance companies don't cover pandemics anymore. Try a "cancel for any reason" policy if you want coverage.
Quarantines
How does travel insurance deal with a future quarantine?
Well,Imagine this, if six months from now a place like California reopens for tourism but, then gets an unexpected wave of cases, and suddenly has to lock down on short notice —The risk to insure that situation (it's reasonably likely to happen somewhere) It's going to be interesting to see if travel insurers will find a way to come up with “quarantine insurance” that is affordable. But at this time, it does NOT exists.
What you should expect after you buy insurance
So how do you buy travel insurance after the pandemic?
If you're purchasing "named perils" policy, do your research. Your best bet is to consider a "cancel for any reason" policy. You'll still have to read the fine print, but you'll have peace of mind — and you'll get paid faster.
So which travel insurance e would I buy?
World Nomads Insurance if you have a company you love please comment below, I would love to hear about them!