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My Quest for the right Travel Insurance
We spent most of our first year as full-time travelers in good health and free of robberies/incidents, and rarely thought about our travel insurance policy. Until right at the end of the year-long insurance contract when we both caught a major bug during our house-sit in Germany (we will spare you the details – trust us, it’s better that way).
Although the company reacted very quickly and accepted our claim over the phone, the high excess waiver fee matched the amount we spent on doctor visits and prescription antibiotics. Imagine our disappointment when we received the insurance claim check for $14. Total. Luckily the out-of-pocket expenses in our case were relatively low, so rather than moaning about it, we simply saw this as an opportunity to re-evaluate our travel insurance needs.
Using what we now know after 400 days on the road about the realities of long-term travel, we are doing massive amounts of research for the best travel insurance packages. What we have found is that there are hundreds of travel insurance providers, but before you make your short list, it is essential to nail down what elements you need your insurance to cover.
How long will you be traveling for?
Annual travel insurance contracts normally cover several short-term trips per year, each up to 30 days maximum. If you plan to travel for over 30 days at a time, look into backpacking insurance, which ranges from three months to a year or even 18 months.
Which countries will you be visiting?
Insurance prices vary greatly depending on the countries you plan to visit. Your insurance quote for traveling in South East Asia, for example, will be remarkably cheaper than if you include the United States in your itinerary. If you do choose to travel through the United States, make sure you have the appropriate travel insurance, as even a basic visit to the doctor can be tremendously expensive, and a trip to the emergency room could eat through your budget enough to cause an early end to your trip.
What kind of a traveler are you?
The price of international travel insurance also depends on the kinds of activities you plan to undertake on your travels. Any adventure or winter sports such as bungee jumping, mountain climbing, scuba diving or skiing and snowboarding will increase your travel insurance quote. If you try to avoid the extra charge and are injured during an adventure activity, the hospital bill will come 100% out of your own pocket, so it is worth it to admit it and pay for the extra coverage up front.
How much are your belongings worth?
Make a list of all the items you are bringing along the trip, and know their value. Knowing how much your belongings are worth enables you to look for travel insurance which offers full liability up to the exact amount of your valuables. Having a list ready (best to be kept in an email so that you can access it if you need it) will also make it easier for you to make a claim that contains all of your belongings along with their value.
What does travel insurance cover?
Regardless of the travel insurance you choose, your travel insurance should cover the following:
- Emergency dental treatment
- Loss of glasses or contact lenses
- Free evacuation if special medical attention is needed
- Lost luggage and/or theft
- Accommodation in case of flight delays/cancellations
- Loss of passport / other important documents
- Lawsuits (if someone claims that you damaged his/her property)
- Evacuation if there are natural hazards, terrorism attacks or armed conflicts
- Regular & extreme sports/activities (if you choose)
- Accidents while working abroad if you plan to volunteer or take a job somewhere
- Cancellation of flights, hotels, etc. in case of an emergency
Take the time: Compare travel insurance companies
Whether you are looking for short-term or long-term travel insurance, make sure to compare several insurance companies using the following criteria:
1. How long does it take for the insurance to reimburse your expenses?
If you have to initially out of pocket for a medical transport or surgery, you don’t want to wait for months to get your money back. Make sure to find a company that promises quick reimbursement of your costs.
2. Can you call your insurance 24/7 to make a claim?
Check the company’s customer service – how do you make a claim? Can you call at any time? This is important as you will often be in a different time zone to the country in which you purchased your insurance. Do you need to provide them with receipts of your expenses before they reimburse you?
3. Does the policy include unlimited medical and hospital cover plus medical evacuation expenses?
Not all travel insurance companies offer unlimited cover, and if there is a limit, make sure sure that it would still pay for transport to your home country if needed, and treatment of severe injuries in all countries that you are planning to visit.
4. Which personal belongings are included in the policy?
Are electronics covered or do you have to pay a surcharge for laptops, cameras, etc? Some travel insurance companies do not include electronics or cameras but ask you to insure them extra. Check that everything you have with you is covered before purchasing a policy.
5. What does the policy say about high-risk travel destinations?
Several travel insurance companies do not offer full coverage for so-called high-risk destinations, i.e. countries which are at war or experiencing political unrest. Check that the countries you are planning to visit are covered by your policy.
6. What is the fee excess of the policy?
Most travel insurance come with an excess, or deductible, which is the amount policy-holders must pay before the insurance kicks in. Make sure you know this before you purchase the policy. In the end, we received $10 back from our only claim, because of the high deductible.
7. Does the insurance cover additional costs resulting from a robbery?
If your passport, cell phone, laptop and credit cards get stolen, you are likely to have additional administrative costs for canceling a phone contract, credit cards, applying for a new passport, plus travel costs to get to your country’s embassy to pick up the new passport – which might be all the way across the country from where your belongings got stolen. Find out just how much of this is covered by the insurance company you choose.
Last but not least…
Cheap is not always the best! International or even domestic travel insurance might not seem essential if you’re young, in perfect health and heading to a fairly safe location, and you may decide for a cheapie policy. However, opting for the cheapest of any type of travel insurance will include major flaws which might not be visible at the first glance, but could end up costing you thousands of dollars in the event of a true emergency. Shelling out the initial cash for quality coverage is worth far more than picking up the tab for your lost laptop or emergency medical expenses. Do the research, evaluate your needs and spend the money on the right insurance policy for you.
Finally, make sure to keep the receipts of all the expenses in case you have to provide them after returning home and keep a good record of all other costs incurred – phone calls, tickets and other fees, in order to be able to make a full claim.
We have been using WorldNomads, one of the world’s leading travel insurers, for many years. Get a quote for your trip now: