insurance
travel insurance

Travel Insurance Need-to-Knows

Whether you’re travelling for business or leisure, packing your bags without the appropriate insurance in place is definitely not recommended… not by the Australian Government, SmartTraveller.gov.au, or us!

Though travel is becoming a lot easier, more affordable, and more frequently required, this unfortunately doesn’t eliminate the risks involved, which is why Travel Insurance exists – to protect your investment in your journey, and ensure expenses don’t get out of control should things go wrong!

But you already know this….

With holiday season approaching, and many Australians looking to travel for leisure, business, or both, now is an important time to be considering you’re travel insurance options.

Here are some less obvious considerations to take in to account:

Not all Travel Insurance policies are the same – there’s no point paying a high premium for contents insurance, when all that’s in your suitcase is cheap clothes. Or paying a premium to reduce car rental excess, when you don’t drive.

Going over the details of your travel insurance policy is important, and can ultimately help you save money (which we’re all interested in!) but more importantly, it ensures you have the appropriate coverage for your travel, and won’t get caught out by the fine print.

Where you’re going matters – think carefully about where your travel is taking you before locking-in insurance. If you’re going to the United States; where the Healthcare system is multi-billion dollar industry, or a lesser developed country; where you will most certainly require airlifting to the closest hospital should something go wrong… then you should be looking at Travel Insurance with high levels of medical cover.

Who you are matters – insurance premiums are based on your age, origin, destination, purpose and duration of travel; and certain pre-existing medical conditions that may increase your likelihood of a claim can sometimes be excluded in the policy. For example, if you have a heart condition, epilepsy or terminal illness, you should disclose all necessary information in order to achieve the desired coverage.

Similarly, snowboarders, skiers, sportsman or individuals who partake in dangerous professions may not be covered for the activities they’re engaging in, and need to take care to receive an insurance policy that has their specific interests at heart. For example motorcycle riding is often excluded under travel insurance policies.

Saving on Corporate Travel packages – if you’re a business or individual that travels regularly for work, you can benefit from taking out 1 policy that covers you for a full year. These types of policies can cover business and leisure, as well as domestic and international travel. They usually cover the Directors and Executives of an organisation and any family traveling with them, but can be extended to include other parties and key staff.

In these cases, if you do more than 1 trip a year, it generally ends up more cost effective when compared to taking out individual travel insurance policies for each trip.

Reciprocal Healthcare Agreements – Countries like Australia and New Zealand have reciprocal healthcare agreements. This means that if you’re from one and travelling in another, you’ll be entitled to free or subsidised public healthcare to the same standard enjoyed by residents. You should refer to your governments official travel website for specific information on reciprocal agreements.

Other Important Travel Insurance Considerations:

Cancellations: In the event that something prevents or delays your travel plans, you should ensure you will be covered for the full cost of your trip and any extras.

Delays: Look for travel inclusions relating to strike, natural disaster and war depending on where you are travelling; and ensure your insurance includes an appropriate daily allowance.

Personal Liability: if someone trips on your misplaced luggage, or ends up flattened by your wayward bicycle and sues you for damages… you will want a policy that covers compensation of medical bills and ongoing treatment.

As you can see, there are many important things to consider when finding the appropriate travel insurance. Don’t be overwhelmed! The best advice we can give is to have a clear idea of your travel itinerary in mind when shopping for insurance, always read insurance policies carefully before purchasing, and be honest with yourself and your insurer about your travel plans… and contact the Business & Agricultural Insurance Specialists at AIA Insurance Agencies today for professional assistance.