We’ve all heard the horror stories. People who travel overseas and experience some mishap such as a broken leg, stolen luggage, cancelled flights or even death of a traveling companion. This is why it is important to make sure you have the correct travel insurance for your situation. Eco-tourists are even more vulnerable as we tend to go to remote areas where there won’t be any qualified doctors let alone hospitals and you may need to be evacuated.
Most people will be deciding between travel insurance provided by a credit card or travel insurance you pay for yourself. If you are relying on a credit card, check to make sure you have fulfilled whatever requirements they have to activate the insurance. This could include paying for the airline tickets, cruise, hotels or whatever on the credit card. Are you covered if you use frequent flier miles? If you used more than one credit card, see which one (if any) would cover you. Also find out who runs their travel assistance hotline-the number you call if you need them.
TYPICAL TRAVEL INSURANCE COVERAGE
1. Medical, Hospitalization, Evacuation to suitable facility if treatment is not available. Don’t skimp on this one, especially if you are traveling to remote areas or very expensive countries. Most policies will have an option for unlimited coverage.
2. Trip interruption or cancellation. If you have non-refundable prepaid travel expenses, you will probably want this. Check to see what events are covered. Common ones will be strikes, natural disasters, weather delays, cancelled flights, late flight casuing you to miss your connection. Check what coverage they offer if you booked your flight with miles and points.
3. Baggage and Personal Effects. You will want this if you have expensive cameras or electronic gear. If you are not bringing anything valuable, you may not need it.
4. Cash and Travel Documents. This covers replacement of your lost or stolen cash and the cost of replacing your passport and other documents.
5. Personal Liability. This covers you if someone sues you for some injury or loss. It may not include liability for car accidents so check the policy documents.
6. Rental Car Excess. This is not the same as collision damage waiver, you will still need to have that covered by a credit card or the car company’s CDW. Excess is the amount excluded from the CDW. In many countries, the CDW will cover damage over a specified amount like $2000 or $3000, more for luxury cars or SUVs. You are responsible for the first $2000 or $3000, this is known as “excess” or “deductable”.
7. Dangerous Sports. You usually need to add this on to a normal travel insurance policy and would cover sports such as skiing, scuba diving, mountain climbing, parasailing, etc.
COMMON TRAVEL INSURANCE POLICY EXCLUSIONS
1. Pre-existing Conditions. This is the biggie. Whatever you do, don’t lie when you are purchasing your policy and say you don’t have any if you do. Insurance companies will gladly use this as an excuse to deny your claim. Most pre-existing conditions can be covered with an extra payment, some non-threatening conditions such as gout, high-cholesterol, asthma, etc. Each company will have different conditions they automatically cover. For example my husband has gout. Gout is included in some polices but not all, especially not the ones underwritten by Allianz. If we didn’t disclose it or get it pre-authorized and he had some accident that could be tied back to gout (maybe falling down a staircase), a claim would probably be denied. If he was sitting in a bus that got into an accident and was taken to the hospital, then this would not be caused by the gout so he would be covered. You also need to be aware that pre-existing conditions of your traveling companions or relatives at home can affect you if you need to cancel your trip or come home early.
2. Traveling to a country that is on your home country’s “Do Not Travel List”. See below for links.
3. Engaging in illegal activities. Gambling, prostitution, fighting, taking drugs, smuggling to name a few. It could also include getting kicked out of a country for not having the correct visa.
4. Participating in dangerous sports or activities. Check your policy to see what they consider dangerous. The most common ones are skiing, scuba diving, mountain climbing, sky diving, parasailing, sometimes white water rafting.
5. Injuries that occur as a result of you being intoxicated or taking non-prescription medications. Not just drinking and driving, it could also include you getting into a fight, injuring someone and being sued or not taking care of you possessions and they get stolen.
6. Acts of Terrorism.
7. Traveling to a country engaged in war, invasion or civil war, whether declared or not.
8. Losses that occur as a result of a travel provider going bankrupt and shutting down. People on package tours are especially vulnerable here.
9. Losses that occur as a result of your negligence. Examples of this would be leaving your bag unattended or with someone you don’t know like the person sitting next to you at the airport while you go to the restroom or someone you meet in a bar. Or it could be asking a stranger to take a photo of you posing in front of something. There is a reason my husband and I rarely get photos together, I am very fussy who I trust with my camera!
The above are only a few of the more common exclusions that may affect eco-travelers. Every policy will have different ones so you need to read those Product Disclosure Statements even if they are insanely long.
HOW TO CHOOSE THE RIGHT TRAVEL INSURANCE POLICY FOR YOU
1. Recommendations from friends and family…………..if they have ever had to claim and have first hand knowledge of how the company handles claims. Was the company easy to deal with and pay the claim promptly?
2. Review and Consumer Websites. Once again, make sure you read reviews from people who have made claims. Ignore good ratings from people who simply bought a policy and were happy with how easy and cheap it was. Also make sure the person isn’t just angry because they lost the claim for something that was their fault. You will see a lot of reviews like this from people who didn’t disclose a pre-existing condition and got sick. The insurance company will check with your family doctor at home so you won’t be able to hide them.
3. The Insurance Company’s Travel Assistance Line. I like to give them a call and run through some “what if” scenarios with them to see how they would handle a situation. How do they handle it if you are unconscious in hospital and the doctor/staff calls them for payment? Do they pay the hospital direct or make you pay and get reimbursed? How would they handle a situation if your flight is delayed and you miss your connection? Ask about recent events, like how did they handle the volcano eruptions in Chile, earthquake in Japan, strikes in Spain, etc. Is the call centre worker empowered to handle any situation or do they have to get a supervisor.
4. Insurance Comparison Websites. These are mostly good for comparing prices and estimates of basic coverages. You will still need to read the individual policies to see what is covered, what isn’t and who handles their travel assistance lines.
RESOURCES AND HELPFUL WEBSITES
AUSTRALIA
Canstar – for star ratings of all the main travel insurance companies in Australia.
Product Review – Consumer reviews of travel insurance companies.
Choice – Professional reviews of travel insurance companies. You have to pay for this one.
Compare Insurance – Instantly get quotes for many different companies.
Smart Traveler – Find out which countries are on the “Do Not Travel” list for Australia.
USA
Top Ten Reviews – Professional reviews of travel insurance companies.
Travel Insurance Reviews – Both professional and consumer reviews.
Trip Advisor – Basic advice.
Insure My Trip – Compare travel insurance from major providers and get quotes.
US State Dept Travel Advisories – Which countries are you advised to avoid?
UK
Money Supermarket – General Advice.
Money Supermarket Quotes – Get quotes from major insurance providers.
Which? – Rates travel insurance companies.
Review Centre – Consumer reviews of travel insurance companies.
Foreign Travel Advice – Countries on “Do not travel” list.
If anyone has any other helpful links please put them in the comments and I will add them to the text. I have never had to claim on travel insurance so I can’t recommend any companies from personal experience. I would love to hear your stories and recommendations!