Explanations and tips on how to obtain the right Travel Insurance Policy for your trip There are many companies offering Travel Insurance and it can be hard to determine which policy is best for you and your needs. This article does not say what is the best insurance or who is the best broker, but how to go about finding the best policy based on your individual needs.
Surveys recorded in recent years show that the majority of vacationers all over the United States, the United Kingdom and Europe still purchase their travel insurance from Travel agents, even though typically these policies have higher commission charges.
Many people also have free travel insurance with their credit cards, in which case you don’t need to worry about it whilst on holiday – or should you? The insurance you are getting gratis may not be suitable for the trip you are planning.
While it might be easier to buy insurance through a travel agent, you will undoubtedly pay more yet be covered for less. A little research in the matter goes a long way in saving you money and getting you the right insurance policy. Direct insurers can be up to 50% cheaper than travel agents as they cut out the middle man and deal directly with the underwriters. While we agree that buying insurance can be convenient and will still appeal to some, you should realize and understand that this is not the cheapest option.
If you go abroad more than twice in one year, it may be that you would be better off with an annual policy, but again you should check this off against the price of single trip policies just to make sure.
Most policies have what is called an excess charge, which is a fee you have to pay up front when you make a claim. These fees can be quite large and sometimes even apply to each section of the policy and not to the whole package. When looking around for quotes you should check these fees and make sure you know if the fees cover the whole policy or just one section within.
Another problem with Travel insurance is that valuable items that you may take on vacation with you, such as camcorders, i pods or expensive jewelery, will not be covered by a policy. The average ‘valuables limit’ is £250/$500 to £300/$600 maximum for a single item. As camcorders or engagement rings typically cost a lot more than this it is not much use as cover. Unfortunately most brokers have this stipulation and it will be hard to find a policy which covers the more expensive items in your luggage.
The best way to make sure your valuables are covered is with ‘Home contents’ insurance which if it has ‘all risks’ cover will insure valuables for a higher amount usually £1,000/$2,000.
Another loophole in ensuring your valuables are covered is by buying them on a credit card. Some credit cards nowadays offer a full year’s guarantee against loss or damage. This can help with certain items but obviously only with items bought within the year and only certain credit cards. Though, this is an option well worth looking into.
To make sure that your insurance will cover all eventualities for your trip you should check the policy to see if it meets your minimum requirements. We recommend that the policy meet at least the following criteria:
Up to £2m/$4m worth of medical treatment
Up to £1m/$2m cover for personal liability
Have a 24hr helpline
£3,000 to £5,000/$6,000 to $10,000 cancellation or curtailment cover
Up to £1,500/$3,000 baggage and belongs cover
Up to £500/$1,000 for lost or stolen money
Backpackers have special insurance packages that they can purchase for trips of up to 12 months, but these also have flaws you have to look out for. Backpacker policies are not necessarily the best options and so again it is worth looking into.
Many brokers for instance, advertise a world trip lasting 12 months for a cost of around £175/$350. However this will exclude baggage cover and adding this to the policy could bring the premium up to a figure closer to £270/$540.
Senior citizens could also have problems finding sufficient travel cover for their vacations, as a lot of brokers either charge exuberant fees for the over75s or don’t cover them at all. Older travelers should research well into the various policies on offer and check to see if the medical cover is of an adequate amount.
Some companies do provide cover especially for senior citizens but the premium can be higher than normal policies.
Basically the low down is - research is everything and if you want to get the best travel cover at the best price you should be willing to spend some time looking for different quotes. Some sites on the internet do a quote service for you. You enter all of your personal details as well as the details of your trip into a system and they come back with the top 5 quotes on offer. This allows you to look into the quotes personally but saves time in finding the brokers who would be providing adequate cover.
