Important Travel Insurance Reviews You Need to Know - Ratinah

Travel Insurance Reviews - Personally I think it would be very stupid not to have some kind of travel insurance, especially if you are flying overseas. People sometimes make the mistake of thinking that their local insurance policy will cover the loss and experience a huge shock when they come to file a claim. Moreover, if you have the right policy in place, it will take all the worries out of your trip.

Important Travel Insurance Reviews You Need to Know - Ratinah

You should always be offered insurance, by your travel agent, when you arrange your trip. If not, ask, as it will be your own responsibility if something goes wrong.

Cheap Policy or Not?

When a travel insurance policy is issued, there is a certain amount of allocation if the premiums, agent commissions, administration fees, part of it goes to profit and the rest is used for the actual insurance coverage. So you can see, if it's a cheap travel insurance policy, something is missing and you can bet that it's a level of coverage.

If you buy a regular travel insurance policy, that is, you fill out a form and send it to the insurance company with your remittance, there are a lot of costs involved. A better way is to get wholesale policies (sold by travel agents) where administrative costs are reduced dramatically, meaning more money is spent on actual coverage.

Some tour operators and agents provide an "in-house" travel insurance policy and, often, all they cover is their own cancellation fees and little else. It may be cheaper but won't give you much travel insurance coverage.

Another way to reduce costs, which will depend on the level of travel you will be taking, is to purchase an annual travel insurance policy. This is a bulk purchase and will likely cost much less than a one-way policy.

Primary or Secondary Travel Insurance Coverage?

These 2 types of coverage determine how payments are made. Primary travel insurance coverage means that the company will "Pay First", i.e. the payment will be paid to the claimant. Secondary travel insurance coverage means they will pay only after you've claimed as much of the other insurance coverage you may have. So you can see that the primary cover is much better than the secondary cover.

What Type of Coverage Do You Need?

It can be said that the 2 biggest risks covered by most travel insurance policies are the costs of changing your travel plans and any medical treatment and emergency assistance needed while you are away.

Most travel insurance policies will cover several hundred dollars for baggage/loss/damage/delays, loss of travel documents and a small amount for flight delays or interruptions. Some will also cover someone to fly to you if you have to be hospitalized for more than 2 or 3 days.

Another big expense, and I have to admit that I've never thought of this before, can be supplier bankruptcy. Often your travel insurance policy supplier cannot have a policy to cover their own bankruptcy. This would be another good reason to have an independent policy from the company that organizes your trip.

Most travel insurance policies cover a large amount of air death insurance, but surprisingly, it's a very low value item at around 25 cents for $100,000 coverage. I guess this shows how safe air travel is.

Some travel insurance policies will also cover the risk of car rental and this may be important to consider because car rental insurance policies are very expensive.

Trip Cancellation/Change of Cover

To understand the possible costs you may incur if you have to change your itinerary or cancel your trip, if you have purchased an unrestricted first class ticket, there may not be any fees associated with changing the ticket as this is usually included in the purchase price.

This may seem odd but the cheapest ticket has the most risk attached to it as far as cancellations/changes are concerned. Changing a cheap fare to return home on a different flight from the original purchase price of the ticket can be more expensive.

You should be aware that when some travel insurance policies state that they will cover 'the total cost of your trip', you may think that the full cost is covered, but that may not be the case. Say your discounted rate is $590 and you have an actual package for $895 and you have to change it, you may find that the return trip will cost more than the whole package. You may have to pay another $1120 to return without a one-way round-trip ticket.

I had this experience a few years ago when I had to rush home for my Father's funeral. Due to time constraints I had to buy tickets without discount. After feeling unwell all day, when I finally arrived at the airport I succumbed to a middle ear infection. So with all the vomit and the different air pressures that come with flying, I couldn't get on the plane. However, since I had purchased a full ticket, there was a problem changing my flight to the next morning. Goes to show that you can't always control your circumstances.

More stringent travel insurance policies may exclude circumstances deemed 'under your own control', and this may include work-related issues. Let's say you are leaving work and you are told that there is a problem to be resolved and that your leaving should be postponed. There is a high probability that this type of travel insurance will not pay for this reason.

Medical Care and Emergency Assistance

Some people mistakenly think that their home health insurance policy will cover all costs wherever they are. They may find that it doesn't cover at all, or the deduction will be much higher or maybe their medical expenses are covered but no associated transportation costs.

You may be on a cruise ship and you need medical attention from the ship's doctor. There is a high chance that their services will be charged just like any other doctor. You may have to be flown home on a stretcher and this will involve blocking nine seats, can you imagine how much it will cost. You must ensure that you have travel insurance of at least $10,000 or more to cover this emergency. Imagine you are in a remote area and you break your leg and you need to be picked up by helicopter, this is good travel insurance.

To Summarize

Imagine your worst travel accident scenario and decide if you need travel insurance. This may be the cancellation of the entire trip plus the associated cancellation fees or an emergency medical accident that requires medivac and local treatment. I know this is a terrible thought, but if you can't afford to insure yourself, spending around $100 on travel insurance will give you peace of mind and one thing to worry about.

That's Important Travel Insurance Reviews You Need to Know - Ratinah


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