18th July 2018

Ultimate Checklist While Choosing Travel Insurance

Often times, people are so excited for their vacation and holidays plans that travel insurance is the last thing on their to-do list. It is too tempting to think, “Nah, I’ll be fine, I won’t need it”. Right?

Wrong!

Why though? Because travel insurance ensures that when things go south, you have a safety net, a backup plan, and the much-needed reassurance that you are protected at all times. In this article, we will cover how to choose a travel insurance that best meets your needs.

Are all my destinations covered?

If you are travelling to only one destination, for instance, Nepal, then this will be an easy one to check off the list, but if you are travelling to several countries, make sure that they are added to your cover. Any place that you choose to stop over, even though it is just for a night, must be added to your policy. Also, if you are travelling on a cruise, make sure to include the destinations you want to visit as a part of the tour.

Are all my belongings covered?

While a majority of travel insurance policies will provide some extent of cover for your personal belongings, the catch is to know exactly how much you are covered for. It is important to ask will it be enough to protect all of your baggage and belongings. If not, it may be wise to change your policy or consider upscaling to cover more valuable items.  So, if you are taking expensive gadgets with you, make sure you account for them in your policy and get supplemental cover.

What will happen if I lose my luggage?

Baggage cover differs the most, so if you are not carrying expensive and valuable items, save on buying premium policies by selecting an option that offers less. For instance, if a transport provider (e.g. an airline) loses your baggage and refuses to offer compensation, if you are insured, it can be obtained through the insurer. However, don’t forget that the minimum time limit varies per insurance as does the level of cover.

What happens if I cancel my trip?

Sometimes things don’t go as planned and you have to cancel your travel plans. If you do, check that cancellation is a part of your travel insurance policy. A good and credible policy will allow you to claim lost funds from cancelled flights, accommodation, vehicle lease, tour bookings and so much more. Don’t forget to check the maximum amount of money that you can claim back.

How much extra do I have to pay?

Prior to you receiving any aid, majority insurance policies will require you to pay extra. It means that if the extra on your lost baggage is $200, you will have to pay the first $200 of your losses before your insurance company will start paying you. To keep you excesses at minimum, consider purchasing a higher level of cover to choose to waive your extras altogether by paying a higher premium.

What is not included in my policy?

No brainer. Knowing what’s not included in your travel insurance is just as important as knowing what is. Make sure to thoroughly read the insurer’s Product Disclosure Statement (PDS), which will give you a comprehension of what’s not included in your cover. For instance, some common exclusions are terrorism, pandemic or epidemic, military occupations, travel provider insolvency, and so on. We suggest you  make a quick note of any specific events of items that are not included in your policy.

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