Travel
Insurance: Going Somewhere?
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Insurance Australia ... your one-stop Australian Travel Insurance
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Going overseas?
You'll need travel insurance - but remember to check the fine print.
It wasn't that many years ago that
the Aussie dollar languished at 48 US cents and holidaymakers stayed
put.
But with the Aussie running in the
70 to 80 US cents range, overseas destinations are again affordable.
All the more reason, then, to pack
that all-important piece of paper with your passport: travel
insurance.
For the sake of a few hundred
dollars you can protect yourself against the unexpected and save
yourself lots of angst and money.
For instance, top cover (with no
excess) for 23 days with one company is $209 for a single or $414
for a family of four for travel to the US; $179 and $354 to Europe;
$162 and $321 to Asia; and $120 and $238 to the Pacific.
Travel insurance covers:
- emergency medical and dental
care;
- refunds of deposit and
cancellation charges;
- additional travel and
accommodation expenses;
- loss of baggage and
- accidental injury or death.
But the policies come with loads of
exemptions and exclusions, which means travellers should take
nothing for granted and check the fine print.
For many people, medical cover is
their top priority.
There's a case of a young lady who
fell ill in the United States and eventually had to stay in a Los
Angeles hospital for 12 days. The bill? A mere $US150,000
($218,000).
The simple lesson is: never leave Australia without travel
insurance.
When you pay for your holiday, or
for your airline ticket, simply buy your insurance at the same time
for the specific period you're travelling.
Then you won't get caught.
Many people fail to realise that
it's important to buy the insurance at the same time that you
purchase your ticket.
This will protect you in the event
that you need to cancel your trip due to accident or illness prior
to departure and cover you for any deposits or cancellation charges.
So why do so many Australians
choose to spend thousands on a holiday and then fail to take out
insurance?
Most people either don't think
about insurance, they think it will be too hard or they just run out
of time before they leave for overseas.
Often people think it is just too
expensive.
But you really have to weigh the
cost up against the cost of something going wrong.
Then it really is a false economy.
Even if you are travelling within
Australia, you should take out insurance, as you never know what
might go wrong.
If cost is an issue, then one way
consumers can reduce the cost of travel insurance is to look at
changing the excess payment options in order to reduce the premiums.
Most policies offer these
variations.
It means that at an agreed price,
the insurance company will reduce your premium but in return, you
will pay a higher excess if something goes wrong.
So you may pay the first $300 of
any claim, rather than, say, $200.
But there is a strong argument that
says travellers should always pay the extra $10 premium or so
required, so if you make a claim you won't need to pay any excess.
Rather than focusing so heavily on
cost, experts says you should focus on what you are getting for your
money.
All travellers should read through
the insurance policy very carefully before they buy it.
Each insurance policy is different,
so it is important you read through the policy document carefully
and understand exactly what is covered and what is not covered
before you spend your money.
The insurance provider needs to be
recognised around the world and, in particular, the underwriter
needs to be well recognised as an insurance underwriter in the part
of the world that you intend travelling in.
You should ask whoever is selling
the insurance who the underwriter is and what their insurance
credentials are.
If they can't tell you or if you
haven't heard of the company, then perhaps you should consider a
different policy.
The biggest single cost in any
travel insurance policy is medical cover.
If you are travelling through the
United States or Canada, then you should ensure any medical coverage
you take out is unlimited.
If you are travelling to Europe,
South America, the Middle East, Japan or Africa, you should consider
at least $750,000 in medical cover; if you are travelling to Asia, a
minimum of $400,000; and if you are travelling to the Pacific, at
least $100,000.
Travellers should also be aware
travel insurance no longer covers acts of terrorism, nor do most
policies cover losses incurred from companies that go into
administration or collapse.
If you are travelling to countries
such as the United Kingdom, which have reciprocal medical agreements
with Australia, it is still advisable to take out some form of
medical insurance.
It's getting increasingly difficult
to get into public hospitals for anything other than emergency
procedures, particularly in the UK.
So often, people who fall ill
overseas find themselves being treated in private hospitals.
If you fail to take out medical
insurance because you believe you can count on Australia having
reciprocal rights with another country, you may find yourself with a
very big medical bill from a private hospital if something happens
to you.
Another important issue to keep in
mind when selecting insurance cover is to make sure the company has
a 24-hour, seven-day-a-week hotline that you can contact easily from
anywhere in the world, says Jackson.
That might not sound very important
now, but if your spouse or travelling companion suddenly falls ill
or has a heart attack, then you will need to contact your insurer as
soon as possible and you will need a 24-hour emergency phone
number."
Most quality medical insurance will
cover the full cost of any medical evacuation back to Australia.
But you should double-check this
with the insurer before you book the evacuation, as their idea of
what is adequate may not be the same as your own.
For example, if you break your leg
overseas you may think a first-class airline seat is essential to
allow you to keep your leg up during the flight - but your insurance
company may not agree.
So make sure you check before you
book the trip home." Also, if you plan to rent a car, check
whether the policy has an adequate excess waiver so that if you have
an accident and damage the car you are fully covered.
Once you have this you can ignore
the pressure from car hire firms to buy their insurance, which can
cost more.
The other big issue in travel
insurance is declaring any medical conditions.
This was the subject of a recent
landmark court case, which has prompted all insurance companies to
tighten up their policies.
It is vital you declare any medical
condition you may have when you are completing the application form.
It really is one of the trickiest
aspects of taking out medical insurance and it is vitally important
you get it right.
If you have any doubts, you should
discuss them with the insurance company providing the cover.
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