While a lot of people think “I’m healthy, I don’t need
travel insurance. I won’t get sick,” travel insurance is much than just medical
protection. It covers you when your camera breaks, your flight is cancelled, a
family member dies and you have to come home, or if something is stolen. It’s
all purpose emergency coverage and is the single most important thing you
should get but hope to never have to use. And, as it only costs a few dollars a
day, you’re foolish not to get it. I never planned on falling in the sea in
Italy with my camera or popping my ear drum in Thailand but I did and, if it
wasn’t for my travel insurance, I would have been out a lot of money.
Travel insurance is one of the most complex and confusing
aspects of trip planning. With the myriad of plans and companies out there,
people can easily get confused about what they should get and why. Given its
importance and the amount of time it’s been since I last discussed it, I want
to start the year by discussing it again.
Travel insurance is something you absolutely need on the
road. You never know what could happen, and most health plans don’t cover you
overseas. I never thought I would pop my eardrum. My friend never thought he
would break his leg hiking in New Zealand. A writer I know had to be helicopter
out of the Amazon after he fell off a boat. Another friend didn’t think her
father would die and she would have to fly back home. But all those things did
and travel insurance was there when all those things happened. (My favourite
travel insurance provider is World Nomads. They always have my back when
something like the above happens.)
I was recently in southern Africa for 3 weeks and my plan
cost only $4 per day. Considering my domestic health plan wasn’t going to cover
me while overseas, it was a small price to pay for knowing if I got attacked by
a lion, bitten by a snake, or contracted malaria, I was protected.
I would rather be safe than sorry and not be stuck with a
giant hospital bill.
But, like I said, it’s more than just medical care. Loose a
bag? Insurance has you covered. Trip cancelled? Insurance is there. Get
something stolen? Insurance is there too.
Travel insurance has more than proved its worth many, many
times. It’s the kind of thing you will be very thankful for when you need it
but hope you never do. After all, you don’t want to end up like my friend who
didn’t have insurance when her computer was stolen and had to pay out of pocket
for a new one.
Here is how to avoid getting a bad insurance plan and not be
properly covered:
What to look for in a great plan
There are a lot of options out there. This is a billion
dollar business and everyone wants their hand in the cookie jar, thus you face
a mind-numbing number of choices that can be confusing and overwhelming. And,
often, in the fine print, you’ll find that plans aren’t as good as you thought.
When looking for a plan, first make sure they have a high
coverage limit on your medical expenses. A good company will provide up to
$100,000 in coverage care, though more expensive policies will cover you for
higher amounts. The maximum coverage limit you can find is around $1,000,000
USD, though I’m not sure why you would ever need a limit that large. High
coverage limits are important because if you get sick, injured, or need serious
attention and have to seek professional care, you want to make sure your high
hospital bills are covered. The worst thing you can do is go cheap and get a
policy with a $20,000 coverage limit, break a leg, and reach that limit before
they are done taking care of you. Don’t be cheap with your health. Get minimum
coverage of $100,000.
Second, you want to make sure your policy also covers
emergency evacuation and care that is separate from your medical coverage. If
you are hiking in the woods and you break your leg, your policy should cover
your evacuation to the hospital. If a natural disaster occurs and you need to
be evacuated to somewhere else, your plan should cover that as well. This
protection should cover an expense of up to $300,000 USD.
Additionally, evacuation also should mean from the hospital
to your home country. Standard emergency evacuation usually includes this
provision but it’s important you double-check a company will cover the cost of
your flight back home if you need it.
A great policy will always include the following provisions:
Cover most countries in the world.
Some coverage for your electronics (and have the option for
a higher coverage limit).
Cover injury and sudden illnesses.
Twenty-four hour emergency services and help (you don’t want
to call to be told to call back later).
Cover lost, damaged or stolen possessions like jewellery,
baggage, documents, cameras, etc.
Cover cancellations such as hotel bookings, flight, and
other transportation bookings if you have a sudden illness, death in the
family, or some other emergency.
Cover emergencies, strife in the country visited, etc., that
cause you to head home early.
Policies should include personal accident coverage.
Have financial protection if any company you are using goes
bankrupt and you are stuck in another country.
Don’t get a policy that doesn’t cover these bullet points!
A quick note on electronics: most companies only have a
small limit, usually up to $500 USD, as part of their basic coverage. You can
often buy supplemental insurance to get a higher amount of coverage. For
instance, Clements Insurance offers special coverage for your electronics.
Prices vary depending on the country you visit (between $145-195 per plan) but
they don’t have worldwide coverage. You have to get coverage for your specific
country. Moreover, many regular and home insurance companies such as State Farm
offer plans that can help you cover your electronics.
What isn’t covered is just as important as what is
Know what is also not covered by your plan. Most policies do
not cover accidents sustained while participating in extreme adventure
activities such as hang gliding, paragliding, or bungee jumping unless you pay
extra. The majority of companies won’t cover you if you injure someone on the
road (called third-party liability). Policies do not normally cover alcohol- or
drug-related incidents, or carelessness in handling your possessions and
baggage. You won’t get reimbursed if the problem happened because you were
reckless, and how “reckless” is defined is a matter up to each company. Simply
put, if a reasonable person wouldn’t partake in what caused your accident, you
won’t be covered.
Moreover, you won’t be covered for pre-existing conditions
or general check-ups. For example, if you have diabetes and need to buy more
insulin, you won’t be covered. If you want to go see a doctor for a general
check-up, you aren’t covered either.
The medical portion of
cheap
travel insurance is more about emergency care than being a
replacement for your normal health care. A lot of people purchase insurance
thinking it is, then get disappointed when they find out they can’t go get an
annual physical with it. Travel insurance is accident insurance. It is there to
protect you in case of emergency and, if need be, get you home in a hurry. If
you want a global health plan (because, say you now live in Beijing), you need
a completely different type of plan.
Making a claim
If you make a claim, remember that any travel insurance
company, no matter how good, is there to make money and will try to avoid
paying out as much as they can. They are, after all, an insurance company and
they don’t make money by paying out to every Tom, Dick and Harry. Be prepared
to wait to receive your money because even the best companies drag their feet.
In order to ensure that you do get paid your claim, make sure you have all your
receipts, necessary forms, and proper documentation – all of it will help make
your claim go through a lot quicker.
Major travel agencies like STA Travel and Flight Centre also
offer their own plans, though coverage is very limited. While I haven’t used
them, many other travel writers I know recommend Medjet and IMG too. Another
really good website is Insure My Trip. It compares policies from a number of
providers and a wide range of policies at once. It’s like a global insurance
search site! It lots of people have success on their site, and I especially
like their high age limit as not enough companies cover seniors!
My favourite insurance provider is World Nomads. I’ve been
using them since I first started travelling in 2003 and use no one else. They
are very reputable, and claims are quickly and fairly processed. I enjoy World
Nomads for a number of reasons: I can purchase and renew my insurance policy
online in a matter of minutes, they have a very friendly and responsive staff that
answer questions and help solve problems via social media, have great customer
feedback, and most importantly, they provide a lot of coverage at a good price.
If there’s one company I would recommend, I would say go with them.
Source: https://insurancegeneralindia.wordpress.com/2015/07/27/how-to-buy-cheap-travel-insurance/
