Most travel insurance policies have a range of difficult-to-decipher benefits. It’s easy to just skip reading the fine print altogether or just go with the simplest available plan. What you should actually do is set aside time to focus on the key categories that are important to you and your travel. To avoid the confusion and frustration, let’s break down what to look out for when purchasing travel insurance.
Single trip or annual plan
You can purchase travel insurance for a specific trip, or in insurance terms, a ‘single trip insurance policy’. But if you travel more than six times a year, it might make more sense to look into an annual policy to provide more value for money. These annual plans often can even be extended to cover your family members too, so it’s worth looking into.
It’s easy to assume that international coverage means you’re free to roam and you’ll be covered. However, some insurance policies avoid specific countries such as Cuba, Somalia, Sudan or Congo due to risk factors, so you might want to look out for the fine print on that.
Beyond cash coverage
You’re probably thinking you want the cheapest premium with the highest amount of cash value coverage. But it’s unfortunately a little more complicated than that as certain insurance companies will advertise the large cash value for show rather than necessity. For example, watch out for ads that claim that the payout is up to millions as this value is only for extreme claims ranging from total permanent disability or death. Matters such as lost luggage or delayed flights may only be covered for as little as hundreds or just a few thousand.
Going to extremes
Who wouldn’t want to let loose while on vacation? You’ll likely try new and adventurous things that you wouldn’t normally do. Activities like skiing, mountain trekking, camel riding or maybe even skydiving! You might not think much of it, but even though these are common tourist activities, they’re not automatically covered by policies. Which brings us to the next point.
Additional cover charges
There are various add-ons you may want to consider when you’re travelling. For instance, if you’re a heavy packer, look into additional coverage with a higher baggage claim limit. If you’re an adventure seeker, you might want a plan that insures a specific activity. Depending on your reasons for taking the trip, consider taking on additional coverage for airline delays, or even failure to go on the trip at all. Fors example, travel insurance doesn’t automatically cover losses such as having booked and paid for a hotel but being unable to get there.
As the premium payment is made at the start of the policy, you’ll be hard pressed to receive a refund should you terminate a single trip policy. Annual plans, however, may be able to offer a refund should you cancel early within the policy period without having submitted any claims.
It’s recommended that you buy your travel insurance as soon as you’ve secured your flight tickets and major accommodations for the trip. Now, if you’re still not sure how you can buy the best coverage for your travels, there are a multitude of compare-and-purchase websites such as Insure DIY that’ll easily lend you a hand in your search. Happy insurance hunting!