Good travel insurance offers you freedom, security and value when you’re travelling. There’s a number of important things to bear in mind when you’re choosing your travel insurance to make sure that you really get the most value from it.
To help, we’ve put together this list to try to make travel insurance simple. It doesn’t have to be difficult to choose the right travel insurance for yourself, whether you’re a seasoned traveller or you’ve never left home. After all, good insurance starts with easy-to-understand policies that let you know what you’re paying for.
Keep these simple ideas in mind and you’ll be well on your way to getting the best cover available to you.
Do I Need Travel Insurance?
The first question you might ask when you’re booking a trip is do I actually need travel insurance? Ultimately getting holiday cover is a personal choice. Unlike motor insurance, it’s not an obligation. Just because it’s not an obligation doesn’t mean it’s not a good idea though. Travel insurance helps to protect you from a range of risks, such as:
- flight delays
- cancellation
- lost or damaged luggage
- medical expenses while travelling
One important thing to bear in mind before purchasing travel insurance is whether you already have it. Some credit and debit cards may include some for of single-trip travel insurance as a perk of purchasing your holiday by using them. If this is the case, then double check it has everything you need and decide if it’s worth purchasing extra insurance.
Single or Multi-Trip?
If you have decided to purchase travel insurance, then you will need to pick between a Single-Trip or Multi-Trip Insurance policy. Like many others you might think that Multi-Trip Insurance only pays off if you travel regularly, but in reality, you can save money even if you only travel twice a year.
It’s also good to know that a Multi-Trip policy can cover you if you decide to take a staycation as well as travel abroad. Exactly how much you can save – and how many trips you need to take- will vary from person to person. But it is always worth getting a quote for both an Annual Multi-Trip and a Single-Trip Policy when deciding what travel insurance to purchase.
If you are only planning one big trip and don’t see any additional value from purchasing a Multi-Trip policy, then a single trip policy can give you all of the same level of protection for your trip.
What Cover Do I Need?
When purchasing your policy, you need to understand the difference between what is covered on a standard policy and what is an additional add-on. If you were going on a winter ski trip, it is unlikely that a standard policy will cover everything you need. Since winter sports are usually considered high-risk activities for insurance companies, medical expenses incurred as a result of skiing would only be covered as an optional extra.
Generally speaking, delays of over a certain time, cancellations, loss or damage of personal belongings & luggage and unforeseen emergency support, such as medical emergencies, are all covered under a standard travel insurance policy. Higher risk activities or activities that significantly increase the value of a claim may require additional cover, however. Winter sports as shown in the above example is one such add-on. You may also consider an add-on to cover excess on a rental car if you plan to do a lot of driving on your holiday or cover for golf equipment if you’re an avid golfer.
Without taking on additional cover you can be left having to cover the costs yourself, but they may not be applicable to all travelers, so think about what it is you need on your trip and build your policy accordingly. Additional add-ons are unlikely to be included in policies provided as a perk for buying a trip through a specific card.
How Are Premiums Calculated
Knowing how premiums are calculated lets you understand how to make the most of your Travel Insurance Policy. The short answer is that premiums are calculated by judging how likely the insurance company is to pay out a claim for you based on historical data. But that’s not very helpful for you. There are a few things for you to keep in mind about what’s affecting your premium though.
Age
Your age will affect your premium, and to some extent your policy. People over the age of 65 for example are usually ineligible for multi-trip insurance and will probably need to keep their trip to less than a month to get cover.
Primarily age increases premiums due to an increased risk of medical emergencies, whether this is an increased chance of a fall being serious, or increased chance of an emergency such as a heart attack.
Pre-Existing Conditions
Similarly to age, pre-existing conditions represent a greater risk to insurance companies. Someone with pre-existing conditions is at a higher risk of needing emergency assistance when abroad. Disclosing any pre-existing conditions is important though. If you fail to disclose a condition then any claim resulting from that condition could be denied.
Coverage Level
One of the areas that you have the most control over your premium is your coverage level. At Peopl. we offer two policy levels- Gold and Platinum. While platinum offers some benefits, such as increased limits on your policy in the event of cancelations, medical expenses, legal expenses and a removal of your excess, it also raises your premium.
Which level you choose is really up to you, but, in the event that you need to make a claim Platinum cover often works out less expensive than Gold cover due to the removal of the excess charge.
Final Thoughts
While Travel Insurance isn’t necessary for your holiday it is generally a good idea to get. Generally the cost is very reasonable and without it you face the risk of significant financial losses. While insurance is sometimes included with certain cards as a perk of booking your vacation through them. It is still worth getting a quote from a dedicated insurer and comparing both policies. There is always the chance that the included insurance is not up the standard that you want or need.
When you do purchase holiday insurance, be mindful about the kind of cover you get. Annual multi-trip travel insurance is more expensive up front but can often work out significantly cheaper in the long run. The same is true for the levels of cover. Platinum cover may cost more but it also raises the limits of what you can claim and removes the excess you would need to pay before insurance kicks in.
