Because we are often traveling, it is easy to be vulnerable. Travel insurance helps us protect ourselves from financial loss if something goes wrong. These are some great tips that can help you choose the best travel insurance to protect yourself against financial loss.
- Travel insurance can be viewed as a contract. This means that you must always read the fine print, including the exclusions for each coverage level. These documents are in legal jargon so make sure you ask for clarification if something is unclear.
- Every insurance company is classified as a financial institution and therefore are regulated by government agencies like the Financial Services Authority (UK). You should verify this.
- Trip cancellation is one of the biggest risks. Make sure you get travel insurance as soon you confirm your trip, even if it is not for several months. You won’t have to pay any extra and you get your coverage as soon as the insurance is purchased.
- Make sure to check your deductibles. The insurance company will deduct a deductible before they pay out on any claims. Ex: For example, if your travel medical claim is for USD300 with a USD150 deductible you will only receive USD150.
- Avoid companies that offer cheap travel insurance, as they often have high deductibles.
- Payout for children is important. Some insurance companies pay only half of the payout, which is absurd considering that the cost for travel for a child can be almost as high as it is for an adult.
- Travel insurance policies require you to calculate the date of departure and arrival. E.g. If you’re leaving on April 05 and returning on April 10, your coverage should be for six days, not five!
- Avoid getting taken in by expensive coverages, such as 10,000,000 for medical. It is unlikely that you will ever need it. Focus on the coverage you need. You should ensure you have adequate coverage if your business equipment is expensive.
- Insurance companies often have limits on maximum payouts so make sure you check the payout ceiling. Personal belongings payouts can be as high as USD5000 but maximum payout per item could only be USD1000. This may not cover expensive clubs or your personal belongings. Insurance companies should clearly list all payouts. If they do not, you can avoid them.
- An annual multi-trip insurance policy can help you save time and money if you’re a frequent traveler. Some insurance companies will even offer extras such as ski protection.
