A small accident in another country can end up costing a tourist hundreds of thousands if they are not covered by some simple travel insurance. In some cases this can be more than the cost of the family home. When you consider how much money you spend every year on home insurance, the cost of travel insurance is relatively cheap. Compared with the more costly and common life, vehicle, home and medical insurances, travel insurance also covers a far wider range of potential catastrophes and it is just as important as the others.
We all have lifestyles, occupations and hobbies that differ and this is what makes us unique and the insurance industry usually is able to embrace that. Where it can, it is ready to make allowances to tailor policies to insure people with differing priorities. Today a person can insure virtually anything, whether it's their left arm or just their car. The more elaborate the cover, the more you're likely to pay. Travel insurance stems from this general insurance but unlike some packages which can seem risky and often unnecessary, travel insurance is a sector which sees more compensation and alleviates more cases of stress abroad than virtually any other sector.
Try to imagine this scenario: Your trip is all planned out and you're excited to arrive at your paradise destination. You have bought all the accessories you need: toiletries, camera, new shoes, new clothes and you're looking forward to finally using them. While hurrying to make your flight your car breaks down, making you late for your flight. Can you afford to spend more money on another ticket? The airline will not just hand you one. That is, unless you have travel insurance. Travel insurance can cover you for costs in respect of reasonable additional accommodation and travel expenses necessarily incurred to reach your exotic destination on time as a result of the failure of the vehicle in which you are travelling to deliver you to the departure point in time to commence the journey, provided you have allowed enough travel time to ensure you meet the departure check in time. Terms and conditions usually apply. This means the cost of another flight, cost of a taxi to get you to the airport again, cost of hotel room at the airport if you can't fly till the next day etc.
Or let us just say that a traffic jam held you up but did not stop you from getting to the airport just in time to board your flight. In your flurry to get onto the plane, you have mislaid your hand luggage containing your money, new sunglasses, some extra cash and some in-flight necessities. You're sure you left it at the duty free chemist but you cannot turn back now. You're already late and the plane won't wait for you. Do you just kiss that bag goodbye? Not if you have travel insurance. Travel insurance will replace (in the equivalent in monetary value) your bag and its contents including the money.
Okay, so you managed to board the flight and keep all your things in tow. Now you can jet off and enjoy your time away. You arrive at your beautiful holiday destination and your accommodation is perfect. However, you manage to get food poisoning at the hotel and you end up being referred from one doctor to the next in the hope of diagnosing your ailment, incurring multiple medical costs along the way. This seems excessive for a case of upset belly but in some third world countries, good doctors can be hard to come by and the most trivial of illnesses can be overlooked. Travel insurance will cover all your medical costs even if the situation escalates and it turns out to be something worse than food poisoning causing you to be admitted to a hospital. Travel insurance will pay for the cost of transporting you home under medical supervision and if you cannot be safely moved, travel insurance will pay for the cost of flying a close family member to your side to support you and be with you until you have recovered enough to be transported home.
At any point during your travels, anything can happen to you and being in a foreign country with no family or friends around only makes it more difficult trying to get through the problems. Travel insurance is designed to ease the inconveniences you may encounter and offer you peace of mind so that your nerves don't get the best of you and spoil your time away.
There are a lot of misconceptions related to travel insurance, and understandably most people aren't as well versed in the fine details of travel insurance as I am ? I can't say that I blame them! However, many misconceptions put people at risk of spending unnecessary amounts of money on areas that could and should be covered by their travel insurance policy.
So, I've compiled this mini travel insurance FAQ to assist those who have doubts, worries or questions about travel insurance.
Q: What should I do before going abroad?
A: Make sure you have adequate travel insurance and that you have checked the FCO Travel Advice for the countries you are visiting. Check you have sufficient money and that your passport is up-to-date. Take a photocopy of your passport details and keep in a safe place. Check what inoculations and visas are required. Note down the numbers and addresses of the UK embassy and consulate in the country you're traveling to.
Q: Should I take out travel insurance before my holiday?
A: I may be a little biased on this one, but yes! It is extremely important that you take out adequate travel insurance even for short trips or visits to Europe, and absolutely imperative in countries outside the EU where different conditions make illness more likely and affordable medical cover that bit more difficult to get hold of. It also covers for cancellation as soon as you book your trip.
If you travel to a country, or part of a country, against FCO advice, it is unlikely that your insurer would meet any claim, however. Should the FCO advice change after you have booked a holiday, check the position with your tour operator and travel insurance company.
Q: Should I be looking at single trip or annual multi trip travel insurance?
A: Only you can answer that really ? although single trip insurance is (generally) cheaper, it does exactly what it says and covers you for just the one trip. By contrast, annual multi trip travel insurance will cover you for the whole year on various breaks, making it the choice if you think you're likely to travel that much. You may find that just taking two trips a year would make annual multi trip travel insurance cheaper than the single trip variety!
Q: What sort of reason for cancellation is valid to ensure cover from travel insurance?
A: As long as your reason is within the scope of cover provided by your insurance, then you should be entitled to claim in most cases. Legitimate reasons for canceling your trip could include an illness or death in the family (as defined by your policy), freak weather conditions suspending travel for 24 hours, burglary or damage to your home, being a victim of criminal assault resulting in you being medically unable to travel, being called up for emergency military service or jury duty (subject to the specific terms and conditions of the policy). Likewise, if the hotel or resort (for independent travelers) you're due to visit suffers from a terrorist attack in the days leading up to your travel, you will generally be able to claim.
Q: Who pays if I need to be hospitalized overseas or flown back to the UK?
A: If you have proper travel insurance, the insurance company should pay such fees. If not, the cost will fall to you or your relatives and friends.
Q: Is a European Health Insurance Card (EHIC) the same as health insurance?
A: No. The free European Health Insurance Card (EHIC) shows that the holder is entitled to reduced or free emergency care only within the EU. You will still need travel insurance to ensure you will be covered fully in the event of illness or injury. The EHIC card will help though, by reducing your initial outlay before you can be reimbursed by your travel insurance company.
Q: Is my pre existing medical condition a big issue?
A: Generally, yes. Check the wording of your policy to ensure it covers pre-existing medical conditions. Often they're not covered unless you pay an extra premium, and if you fail to declare your condition when you buy the travel insurance, you'll be unable to claim on it. As always the key advice here is to check the policy wording with a fine tooth comb.
Q: How can I find out whether it is safe to travel to a particular country?
A: It is strongly advised that you check the FCO Travel Advice section of their website (fto.gov.uk). This information is regularly updated and should give you solid advice on where is and is not safe to travel (remember, areas officially outlined as ?unsafe? will seldom be covered by travel insurance policies).
Q: Is it safe to travel after a terrorist attack overseas?
A: Unfortunately, there is no such thing as risk-free travel, and the absence of advice against travel to a particular country or area does not imply that the FCO guarantees safety in that country or area.
I hope this travel insurance FAQ has proved useful ? it's only really scratching the service and each policy is different, but with this advice you should be in a better position to shop around, next time you need to purchase travel insurance.
Both Roc Selly & Patrick Chong are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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