Travel Insurance checklist - Tips on choosing the right cover
Beyond a shadow of doubt, we all know how important Travel Insurance is when you are about to even think of travelling. Travel Insurance should be thought about the moment you begin thinking of travelling. When you finally pay your first deposit or make payment in full you must buy your Insurance at the same time.
Getting the most out of your travel insurance is all about having the right policy to begin with, but it can be a little overwhelming trying to determine which level of cover is right for you. Below are some tips on how you can determine which cover suits you and your family.
1. Destination cover
Are all your destinations included in the cover? Pay special attention when you have multi sector travel or stopovers. Ensure that you have picked the right destination cover.
2. Medical
Do you have the right level of cover for medical. Have you checked that you are sufficiently covered for pre existing conditions? You will be asked to complete a medical assessment in most cases. If you’ve got a pre-existing medical condition, you’ll also need to confirm that this doesn’t exclude you from the cover you want to buy. You should also gain a clear idea of what excesses you will be required to pay before your medical cover kicks in.
3. Personal Belongings
How much of your baggage and belongings are covered? Most travel insurance policies will provide some level of cover for your personal belongings. The key lies in knowing how much you are covered for – e.g. $500 or $5,000 – and if this enough to protect all of your baggage and belongings. If not, you may want to change your policy or consider upgrading for specific items.
4. Valueables
Never assume that any valuables will be automatically covered by your insurance policy. Common items like passports, phones, laptops, cameras, tablets, sunglasses and jewellery are often excluded from cover, particularly when it comes to the lower-level/basic policies. Make sure you read the Product Disclosure Statement to gain an understanding of whether your valuables are protected and under what circumstances you can make a claim.
5. Sports and Activities
If I am injured, whilst engaging in sporting activities, would I be covered?
Certain activities, like motorcycling or white water rafting, mean there is a higher risk that you could become injured while on holiday. Hence, you should check whether your policy covers you for the specific activities you will be engaging in and what the terms and conditions of these activities are (e.g. if you are scuba diving, you may only be covered to a certain depth).
6. Cancellations
If I cancel my trip, will I get my money back?
Things don’t always go according to plan, and there may be some unexpected events that require you to cancel your trip. If you do, you’ll need to check that cancellation is part of your travel insurance policy. If you have the right cover, you may be able to claim lost funds from cancelled flights, accommodation, car hire, tour bookings and more. Your policy should tell you the maximum amount of money that you can claim.
7. Limits/Excess
How much money do I want to pay before I can claim?
Most insurance policies can include excesses. This means that if your excess on lost baggage is $100, for example, you’ll be responsible for covering the first $100 of your losses before your insurance company will begin paying you. If you want to keep your excesses low; consider purchasing a higher level of cover or choose to waive your excesses altogether by paying a higher premium.
8. Exclusions
What's excluded from my policy?
Exclusions are a mandatory part of any insurance policy and reading your Product Disclosure Statement carefully before you purchase should give you a comprehensive view of what isn’t included in your cover. You should make note of any specific events or items that are excluded from your policy, as well as any circumstances or situations that automatically mean your losses will be excluded.
Always read the PDS