I'll start by saying this is not financial or insurance advice. That's not just to be a disclaimer, but the fact is generally nobody should be giving you advice on what insurance is right for you. Travel Insurance needs to be tailored to individuals. So, when you see on social media somebody says, "We went with XYZ Insurance and they were great". That might well be true, but it doesn't mean it's going to be the right insurance for you. Not all insurance is equal.
Reading terms and conditions is a royal pain in the bum. We all hate it and I'm no different to many guilty of skipping the fine print. Travel Insurance is one contract that YOU should 100% read the fine print of the Product Disclosure Statement (PDS), even if it takes you additional time. Don't rush it.
The reason I say not all insurance is equal is many factors contribute to whether you will be covered when needed. Some of these factors include your age, any illness or preexisting conditions, where you are travelling to, and if you will be partaking in certain activities. All these factors will not only determine your coverage but will also determine your premium. The cheapest is NOT always the best option.
There's a common misunderstanding that all travel insurance policies cover lost baggage and any sickness, illness and accidents. That's far from the truth. In addition to looking at important factors about trip cancellation, lost luggage and medical treatment. There are three very important factors when it comes to Travel Insurance.
Ensure you select the correct coverage.
If you plan to go Snow Skiing, Adventure Activities, Parachuting or riding a motorbike etc. Ensure your insurance covers these activities. It is not uncommon for Insurance Companies to have these as an add-on package, whilst some other companies may not include them at all. Read the PDS. *Also, before you think about jumping on a motorbike and zipping around Thailand, remember, many insurance companies will only cover this activity if you are a licenced rider in your own country. Not a car licence, not an international licence and not something out of a cereal box. Vendors of the motorbike rental businesses will most likely not care if you have insurance or not, they will rent to you regardless. If in doubt, call your Travel Insurance and ask the question.
Always disclose pre-existing conditions
Yes, most likely this will increase your premium, not always, but you should declare ANY pre-existing conditions. This includes High Blood Pressure, Heart Conditions, Bad Back, Depression etc. Many pre-existing conditions will be covered by your travel insurance IF you declare them. Don't leave off something because you think you'll be denied insurance. If one company won't insure you, others most likely will. When you declare preexisting conditions, most likely you'll be asked a series of questions about your condition. This may include what medications and if you have been hospitalised for the condition. Always be honest with your answers.
Answer the questions truthfully and disclose everything
Don't leave anything out. Claims can be denied or limited if you do not disclose the correct information. I can't think of anything worse than being stranded in a foreign country with a serious medical condition and being denied coverage because you didn't tick the correct box. Yes, it sadly happens.
This is a sad case, of an Australian man holidaying in Bali. He had comprehensive travel insurance but failed to select motorbike coverage. The result is tragic. Click HERE for the story.
Another incident in Thailand recently showed the need to thoroughly understand your policy. An Australian mother of two tragically misjudged a step in the Hotel and fell and struck her head resulting in significant head and brain injuries. Despite the serious nature of the accident, her travel Insurance would not assist her because she had consumed, what they deemed as excessive alcohol. The family dispute this but needed to raise over A$200,000 via GoFundMe to bring her home for further brain injury treatment. Click HERE for the News coverage. (UPDATE: 16 August 2023 - Sadly, the woman at the centre of this story passed away as a result of her injuries, RIP)
This is my recent Travel Insurance dealings (August 2023)
Here's an example of my recent Travel Insurance experience, without naming the insurance company.
So, Im travelling to Bali, Indonesia from Australia for 14 nights with a family of 3 (2 Adults and a 17-year-old). We plan to do activities such as rafting and quad biking, but will not hire motorbikes. I have some pre-existing conditions relating to high blood pressure and arthritis in 2 discs in my back. Bit painful but I'm not dead yet.
Standard Insurance Premium = $275.00 (Standard - based on Destination, Age, and length of stay)
Adventure Package = $56.00 (This coverage was for quad bikes, rafting etc)
Pre-existing Conditions = $201.00 (Ouch, this was for my wife and me)
Total Insurance for 3 people = $531.00
If I am ever asked the question. Do you need travel insurance? "Yes, you do". Of course, it's not mandatory and if you're willing to take the risk, that's a decision you need to consider.
In summary,
- Ensure your coverage is tailored to you and your activities.
- Read the Product Disclosure Statement (PDS) and understand your obligations.
- Always be truthful and disclose relevant information.
- If you are unsure, don't be afraid to call the Insurance company and ask the question.
- Keep an eye on Government Travel advice to your destination.
Understand, travel insurance is there to assist you in a time of need. Most travellers will never claim a major medical incident, you're more likely to claim for trip cancellation or lost luggage. Don't stress about it and don't allow it to spoil your travel planning.
Safe travels
About the Author
The author of this blog, unless otherwise noted has no affiliation with any property or business linked in this article. Unless otherwise noted, there is no free accommodation or payment from any businesses. The information contained in this blog is strictly the views of the author and not professional advice. The author of this BookDirect blog is a travel and tourism professional with over 30 years of experience in international hotel management, global travel, short-term rental management and a tourism awards judge specialising in accommodation and attractions.
Comments