How to Choose a Cheap Travel Insurance Policy
Cheap Travel Insurance is always tricky to buy, especially when that insurance has come up free with your bank or credit card company. You must ask yourself whether it really covers all the necessities and to what levels?
Will you be flown home in the case of a serious medical emergency? Can you contact someone 24 hours a day? How much will you be covered for?
Do you really need Travel Insurance?
No, you don’t, as long as you can guarantee the following:
* You’re not going to get ill while you are away;
* You’re not going to have any accident;
* Your flights will not be delayed or cancelled;
* No one is going to steal anything;
* You are not going to lose anything;
* Your baggage will not get lost;
* All your accommodation will be just as planned.
Do you still think travel insurance are a little boring? Well, it is a lot less boring than working dirty job all night to pay off a $75,000 hospital bill after you break your arm. And it is not nearly as expensive as you might think.
Choose the right type of insurance policy
There are several different types of insurance cover available, so make certain you search for the one that fits you best.
For example, there are policies planned specifically for backpackers, with less accent on a missed connection and more focus on health cover in Nepal.
There are also travel policies for business travellers, annual policies for those lucky ones to travel throughout the year, and policies aimed at more mature travellers.
There is one thing travelers should be aware of. When large-scale catastrophes hit, including hurricanes, quakes, or even terrorist attacks, most airlines and hotels allow clients to change or cancel their plans without penalty. So when it comes to weather, it is sometimes not necessary to buy travel insurance. But if you want to play it safe, go for it. The price of most policies is based on a percentage of the overall cost of your vacation, adding mayhap 5 or 10 percent onto your bottom line. That is not a lot to pay for peace of mind.
Read the small print
Make sure you read the section that tells you what you are covered for and how much they will pay if you do need to bring in a claim.
Some policies appear ridiculously cheap because they are, ridiculous. They do not cover the things you might need like hospital fees, for example, or maybe they have a very low limit to the amount of stolen money that they will replace.
While looking across the fine print, note that some situations are not covered. You don’t have carte blanche to cancel the travel for any reason. Basically, the weather has to be bad enough to force you to cancel a vacation before the policy will compensate. So if the road to the airport has been shut down, if the airline canceled your flight because of a snowstorm, or if your Caribbean resort suffered damage in a hurricane, you are covered. But if the airlines are flying and your resort is open for business, you can not cancel and expect to be covered.
Likewise, just as health insurers won’t cover “preexisting conditions,” travel insurance policies will not cover events that are seen as “foreseeable.” So if you are heading to the Caribbean in a week and the National Weather Service issues a storm warning, it is too late to buy a policy that will compensate when you have to cancel. On the other hand, if you purchased the travel insurance in advance, well before that warning was issued, you are in the clear.
Some credit card companies offer so-called ‘free’ travel insurance policies if you pay for the travel with their card. Look carefully at exactly what you are covered for and how much they will pay off. Many of these schemes do not provide even a basic level of protection – and many people don’t realise that until it is already late!