October 17, 2018

A Quick Guide to Buying the Best Travel Insurance

What are your must-haves when travelling? Passport and other documents? Clothes? Mobile devices and chargers? Shoes? Money and credit cards? What about travel insurance? This type of insurance specifically provides coverage for when you travel.

Why get a travel insurance?

Mishaps and incidents can occur anytime while you’re on a trip, and it will save you so much money and from inconvenience if you have travel insurance to depend on.

Mishaps and accidents can occur any time while you’re on a trip, and it will save you a lot of money and inconvenience if you have travel insurance to depend on. Otherwise, you will be responsible for all expenses overseas in the case that you need emergency treatment or lose your luggage.

What does travel insurance cover?

When looking for travel insurance, keep in mind that different insurers offer different travel insurance policies. Make sure to do your research and know what you want to be covered for. In general, coverage can include:

Overseas medical expenses

If you need to go to a hospital while overseas, your travel insurer will cover your medical bills. However, it depends on the level of coverage that’s included in your policy.

Luggage and personal effects

Depending on your policy, your travel insurance will pay to replace luggage and valuables that get lost or stolen when you travel.

Flight cancellations or delays

Your travel insurance can lessen the frustration of costs incurred due to delayed or cancelled flights. Just make sure that you have proper documents to prove that there’s a cancellation or delay.

Personal liability

If you accidentally cause damage to someone or something while overseas, such as denting a hire car or breaking an item at the hotel, your insurance will pay.

What are the levels of coverage to consider?

In general, there are three types:

1. Basic

It covers possible travel incidents such as loss of luggage but comes with a threshold amount

2. Standard

It can include unlimited cover for medical bills and cancellation of flights

3. Comprehensive

As the name implies, it provides the widest coverage on incidents and medical-related expenses while overseas

How much does travel insurance cost?

The cost or premium is affected by several factors such as level of coverage, where you’re travelling, your age, pre-existing conditions, etc. One thing to remember is: the more comprehensive your policy is, the more it will cover, the higher the limits are, and the higher the premiums are.

You don’t have to get the most comprehensive travel insurance policy that you can find and pay a lot on premiums. The key is to focus on what you need to be covered for and remove everything else that you don’t need. This ensures that you’ll have coverage without spending more than you need to.

Also, read and understand the fine print, and know how much you will have to spend if something goes wrong and your travel insurance will not cover all of it.

Do you have other ideas on travel insurance in Australia? Share your insights in the comments section.

About the author  ⁄ Marxa Dillan

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