Travel Insurance

Travel Insurance - Do You Need It Or Not?

Summary:
Personally I think it would be very foolish not to have some sort of travel insurance, especially if you are flying abroad. People sometimes make the mistake in thinking that their local insurance policies will cover any losses and have a big shock when they come to make a claim. Besides, if you have the right policy, it takes all the worry out of your trip.
You should always be offered insurance, by your travel agent, when you arrange your trip. If not, ask, because it wi...

Personally I think it would be very foolish not to have some sort of travel insurance, especially if you are flying abroad. People sometimes make the mistake in thinking that their local insurance policies will cover any losses and have a big shock when they come to make a claim. Besides, if you have the right policy, it takes all the worry out of your trip.
You should always be offered insurance, by your travel agent, when you arrange your trip. If not, ask, because it will be on your own head if anything goes wrong.
A Cheap Policy or Not?
When a travel insurance policy is issued there are a number of allocations if the premium, agents commissions, administrative costs, some goes towards profit and what's left over goes towards the actual insurance coverage. So, you can see, if it's a cheap travel insurance policy, something is going to miss out and you can bet it will be the level of coverage.
If you buy a regular travel insurance policy, that is, you fill out a form and send it to the insurance company with your remittance there are a lot of costs involves. A better way would to get a wholesale policy (which travel agents do sell) where the administration costs are dramatically reduced, meaning more money is spent on the actual coverage.
Some tour operators and agents provide an "in-house" travel insurance policy and, often, all it covers is their own cancellation fees and little else. It may be cheaper but will not give you much travel insurance coverage.
Another way to reduce costs, which depends on the level of travel you are going to do, is to purchase an annual travel insurance policy. This is buying in bulk and is likely to be much less expensive than the one-off trip policy.
Primary or Secondary Travel Insurance Cover?
These 2 types of cover determine the way the payouts are made. The primary travel insurance cover means that the company will "Pay First", that is the payment will be paid to the claim maker. The secondary travel insurance cover means they will pay only after you've have claimed as much as you can from other insurance cover that you may have. So, you can see that the primary cover is a lot better than the secondary cover.
What Type Of Coverage Will You Need?
It's fair to say the 2 biggest risks that are covered by most travel insurance policies are the costs of changing your travel plans and and any medical care and emergency assistance that is required while you are away.
Most travel insurance policies will include a few hundred dollars for baggage/loss/damage/delay, loss of travel documents and other small sum for flight delay or interruption. Some will also cover for someone to fly out to you if you are to be hospitalized for more than 2 or 3 days.
Another major cost, and I must admit I never thought of this one before, can be supplier bankruptcy. Many time the supplier of your travel insurance policy are unable to have the policy to cover their own bankruptcy. This would be another good reason to have an independent policy from the company arranging your travel.
Most travel insurance policies include a large amount of air death insurance, but surprisingly, it's of very low value item about 25 cents for a $100,000 cover. I suppose this indicates how safe air travel is.
Some travel insurance policies will also cover car rental risks and this may be an important thing to consider as car rental insurance policies are extremely expensive.
Trip Cancellation/Change Coverage
To understand the possible costs that you may need if you have to change your itinerary or cancel the trip, if you have purchased an unrestricted first class ticket there may be not any costs associated with changing the ticket as this is usually covered in the purchase price.
It may seem strange but the the cheapest ticket has the most risk attached to it as far as cancellation/change is concerned. It can cost a heap more to change the cheap fare to return home on a different flight than the original purchase price of the ticket.
You will have to be aware that when some travel insurance policies state that they will cover 'your total trip cost' you may think that the full charges are covered, but this may not be so. Let's say that your discounted fare cost $590 and you have a package that actually costs $895 and you have to change you may find the return trip will cost more than the whole package. Maybe you will have to pay another $1120 to get home on a no advanced one way return ticket.
I had this experience a few years ago when I had to rush home for my Father's funeral. Because of time restrictions I had to buy a non-discounted ticket. After not feeling well all day, when I finally arrived at the airport I succumbed to a middle ear infection. So with all the vomiting and the different air pressures that come with flying there was no I could get on a aircraft. But, as I had purchased a full fare, there was problems in changing my flight to the next morning. Goes to show that you can't always control your circumstances.
The more restrictive travel insurance policies may exclude circumstances that are deem-med 'under your own control', and perhaps this may include work related issues. Let's say you are about to leave work and you are told there is an issue that has to be solved and that you leave has to be differed. There's a very good chance that this type of travel insurance would no pay out because of this reason.
Medical Care and Emergency Assistance
Some people mistakenly think that their home medical insurance policy will cover all costs wherever they are in the world. They may find that that it doesn't cover at all, or the deductions will be much higher or perhaps their medical costs are covered but not any related transport costs.
You may be on a cruise and you need some medical attention by the ship's doctor. There is a good chance that their services are charged for as with any other doctor. You may have to be flown home on a stretcher and this will involve blocking out nine seats, can you imagine how much that would cost. You should make sure that you have travel insurance of at least $10,000 or more to cover these emergencies. Let's imagine you are in a remote area and you break a leg and you need to be lifted out by a helicopter, this is what good travel insurance is all about.
To Summarize
Imagine your worst case travel mishap scenario and decide whether you need travel insurance. This may be the cancellation of the whole trip coupled with the associated cancellation costs or some emergency medical mishap that will require medivac and local care. I know these are horrible thoughts but if you can't afford to self-insure the expenditure of around $100 on travel insurance will give you the piece of mind and one less thing to worry about.

7 Good Reasons For Travel Insurance

Summary:
For thousands of years, risks have been shared during times of tragedy. The first formal insurance company, Lloyd's of London, was formed in 1769 and their principal concept remains today - to gather the premiums of clients as a pool of resources to return to clients who experience unexpected but covered events. So, that is the secret really, plan for the unexpected and make sure you're covered, especially when you're travelling. Whether your trip is a quick one or a round th...

For thousands of years, risks have been shared during times of tragedy. The first formal insurance company, Lloyd's of London, was formed in 1769 and their principal concept remains today - to gather the premiums of clients as a pool of resources to return to clients who experience unexpected but covered events. So, that is the secret really, plan for the unexpected and make sure you're covered, especially when you're travelling. Whether your trip is a quick one or a round the world cruise, there are many good reasons for travel insurance. Here are just 7:
 Medical Emergencies: If you fall sick or are injured during your travel, your travel insurance will give you financial coverage.
 Flight Cancellations: If your flight is cancelled or delayed then your travel insurance should help. Depending on the cover available, a room for the night and even alternative travel home can be included.
 Pre-existing Medical Conditions: Even if you have a pre-existing medical condition and it flares up while you're on vacation, as long as you've advised your travel insurance company prior, you should be covered.
 Damage or Loss Of Personal property - What are you going to do when your luggage gets stolen? Yes, it happens, all the time. There are organised gangs that work in airports doing just that. Guess what? You need travel insurance.
 Loss of Cash or Traveller's Cheques - You're in a foreign country far from home. You either lose, or have stolen, your entire holiday fund. You're going to need help and quick. Again, travel insurance is a must.
 Emergency Evacuations - What with global warming and economic pressure more and more holiday destinations are being built in potentially dangerous territory. Who would have wanted to be in Thailand on that Boxing Day? Travel insurance will help if you have to get out quick.
 Car Crash - It can be very difficult driving on the wrong side of the road in a strange country. Accidents happen.
Okay, there you have it. 7 good and solid reasons why you need travel insurance the next trip you make. The other alternative of course is to not take out travel insurance, or to stay at home. Now, there's an idea. But seriously, as always when taking out insurance, especially travel insurance, read the fine print. Importantly, find out before you go what is excluded, not just included. So, always read the fine print. For example, accidental coverage is not provided in case of drunken driving, driving under the influence of narcotic substances etc. Exclusions are also provided for accidents during risky sports like bungee jumping, car racing, scuba diving, white water rafting, flying (except as passenger in regular airliners), gliding, skiing, bike racing, diving, mountaineering, windsurfing etc. The list goes on (insert for your favorite potentially dangerous sport here). That means in case of accidents in these situations the insurance company is not liable to pay any amount to the insured.

7 Things To Do Before Buying Travel Insurance

Summary:
Going back to Roman times, risks have been shared during times of tragedy and unforeseen circumstances, such as earthquakes, floods and the like. The first formal and recorded insurance company, Lloyd's of London, was formed in 1769 and their founding principal remains intact today - to gather the premiums of clients as a pool of resources in order to return to clients who experience unexpected and unforeseen but covered events. So, that is the secret really, plan for the une...

Going back to Roman times, risks have been shared during times of tragedy and unforeseen circumstances, such as earthquakes, floods and the like. The first formal and recorded insurance company, Lloyd's of London, was formed in 1769 and their founding principal remains intact today - to gather the premiums of clients as a pool of resources in order to return to clients who experience unexpected and unforeseen but covered events. So, that is the secret really, plan for the unexpected and unforeseen and make sure you're covered, especially when you're travelling. Whether your trip is a quick one or a round the world cruise, there are many good reasons for travel insurance. Here are just 7 things you should do before you buy your travel insurance:
 Whatever you do, please explore the market and educate yourself with all the terms and terminologies of the travel insurance cover that will help you to avail the best travel insurance.
 Certainly check what is included in your travel insurance policy but most importantly, check what is EXCLUDED from your travel insurance policy.
 Research the area you are going to. What is the weather likely to be like? Is there any danger of hurricanes or tropical storms? Floods? How about Mosquito borne disease? What is the crime rate like? Whatever the perceived dangers your research uncovers then make sure that your travel insurance covers you for that eventuality. It is no good after the event to find out that you are not covered for rabid dog attacks (because there are so many in that particular area).
 Discuss Your Existing Medical Conditions and Requirements - You need to carefully assess your likely medical requirements and make sure that these are declared to the travel insurance company.
 If you intend to drive make sure that you are adequately covered. Many hire companies charge astronomic excesses in case of an accident. Make sure that you insured for that excess (and it will be a lot cheaper than paying the hire company's rates for that same cover).
 Make sure you have the necessary documentation for travel in that country. Take Spain for example which is part of the European community and will offer free health care say to a UK citizen on holiday or living there. There are certain conditions, one of which is that you must have a UK E111 form, if you don't have that, you will not be treated. You must also go to a national health hospital, which are not in abundance in certain areas of Spain.
 If travelling in Europe, it may pay to get a EHIC (European Health Insurance Card) as this will remove a lot of worry should you need any emergency treatment.
Okay, so there you have it. 7 things to do before buying travel insurance for the next trip you make. The other alternative of course is to not take out travel insurance, or to stay at home. Now, there's an idea. But seriously, as always when taking out insurance, especially travel insurance, read the fine print first. Importantly, find out before you go what is excluded, not just included. So, always read the fine print. For example, accidental coverage is not provided in case of drunken driving, driving under the influence of narcotic substances etc. Exclusions are also provided for accidents during risky sports like bungee jumping, car racing, (insert for your favourite potentially dangerous sport here), scuba diving, white water rafting, flying (except as passenger in regular airliners), gliding, skiing, bike racing, diving, mountaineering, windsurfing etc. The list goes on. That means in case of accidents in these situations the insurance company is not liable to pay any amount to the insured.