Types of Travel Insurance Explained
March 10th, 2009 | Mark James | Travel Insurance
Travel insurance is a catch-all term that covers lots of different insurance, whose cover can protect tourists for everything from medical expenses to getting hijacked. It can all be bit confusing for those new to travel, so here is a brief summary of the main types of travel insurance. A typical holiday travel insurance policy will cover many or all of these: but focus on the insurances that are most important to you.
- Hospital and Medical Cover
This is what most people think of when they think travel insurance. It’s also the most common claim for travellers. Getting sick or injured in the wrong place can bankrupt you in some countries – particularly the US. Good hospital and medical insurance cover will not only pay for direct expenses overseas, but should also cover you for a medical evacuation – remember that a simple broken leg may well require a first-class seat to get you home! You may also need to be repatriated with medical staff or even just a friend, to help with the logistics on the way home. - Loss of Luggage and Personal Effects
This travel insurance can be the most important area of cover for some travellers. Losing your luggage can be inconvenient, but add up the value of all the gear you have with you and you may well be surprised. Check on individual item limits too, because often expensive jewellery and electronics, such as laptops, need to be listed separately. Also remember to take reasonable care: many policies won’t cover you if you check in valuable items in the hold of a plane for example. Check exactly what is or is not covered too, in terms of cash and cards which may get stolen – there are often limits on cash particularly. - Cancellation or Curtailment cover
This is one a lot of travellers miss. The best deals or airfares and tours are often available by booking as early as six or nine months before travelling. However, if you have to cancel near the departure date because of illness or other unexpected event, you can forfeit 50% to 90% of your payments. Look for a travel insurance policy which will cover you from the day you make that deposit. - Rental Car Cover
This is an area of confusion to many people. You hire the car and you tick the box that says insurance right? Not quite – often you are still liable for thousands of dollars in excess, or even the whole amount if you have a single vehicle accident. Remember the chances of having an accident are a lot higher when you are driving an unfamiliar car in unusual conditions – snow anyone? - Missed departure or connection
The cover provided by different companies varies enormously. Check your policy to ensure you are covered for flights on any part of your itinerary rather than just the outward flight. Also make sure there’s cover if a traffic delay causes you to miss your flight
Those are some of the key types of overseas travel insurance to get for most holidaymakers. Read the fine print, and make sure you know what is covered and where you are to do it.
