If you can’t afford travel insurance, then you can’t afford to travel. Sorry if that sounds blunt. But that’s the way it is. There are so many unknowns that can sneak up to ruin your holiday, that travel insurance is an absolute necessity. In this post we’ll have a look at how to get the best travel insurance for you.

The last thing you want is to be stuck in a hospital, not able to afford vital medical treatment. Having to sell your family home to cover costs, or even worse, going onto Go Fund Me, to get other people to pay for your costs because you didn’t want to.

These are all terrible outcomes.

To be honest, given the cost of a typical holiday, with airfares, accommodation, spending money and so on, the cost of travel insurance is a relatively small drop in the puddle.

Why you need travel insurance

Traveling is a risk. No matter how careful you are, accidents can happen, and things can go wrong. That’s why you need travel insurance. It will protect you financially if something does happen and you can’t work or earn an income.

Travel insurance is also important because it covers things like canceled flights and lost luggage. That way, if things don’t go as planned, you won’t have to worry about paying for the expense out of pocket. There’s a lot of us out there, me included, who watched Covid-19 shut down our holiday plans.

With cancellation insurance you stand a much better chance of getting your money back.

What Kind Of Travel Insurance

However, it is important to know what kind of coverage is right for you and your situation. There are two main types of coverage: emergency medical and emergency medical and baggage.

Emergency medical will cover the cost of emergency medical treatment as well as emergency transportation (to another hospital or back home). Emergency medical and luggage will cover those costs as well as cover the cost of luggage if it gets lost or stolen.

So, what type of coverage should you get? There are a few things you should consider first: your destination, your health and your budget.

If you’re traveling somewhere where emergency medical services can be more expensive or not as available, you may want to consider emergency medical and luggage coverage.

As an Aussie, we can get a bit confused about the need for medical insurance. We take it for granted that if you head down to the hospital with a broken leg or heart attack or whatever, then the most expensive part of the treatment is the parking.

I’m sure that there are a lot of other places in the world with universal healthcare that feel the same way. However, there are also a lot that don’t have the same benefits that we take for granted.

How to select the right coverage

Coverage for accidents and illnesses is one of the most important types of travel insurance. If you’re not feeling well and need medical attention, travel insurance can help cover your medical expenses.

But, before you purchase a policy, you need to consider your age and what your healthcare needs are. If you have a pre-existing condition, it’s important to know if the plan will cover it or if there are any limitations.

Another important consideration is the return of your medical expenses. If your medical expenses exceed your coverage limit after a policy expires, the insurance company will pay the remainder of your medical bills. If you have a higher deductible, it’s best to purchase a plan that has a higher medical coverage limit.

Travel insurance also provides coverage for lost or stolen items. If something is stolen from your hotel room or if you leave something on a bus, travel insurance will likely cover those costs as well as lost luggage.

Lastly, many people overlook travel insurance’s coverage for trip cancellation and interruption. If you have to cancel your trip for any reason or if your travel is interrupted due to an event like a natural disaster, travel insurance may cover any non-refundable expenses.

What does your coverage cover?

The type of coverage you need is dependent on the type of traveler you are. For example, if you will be traveling in a group, family or have any pre-existing medical conditions, travel insurance will be a necessity. People traveling independently may want to consider medical travel insurance to cover the cost of emergency medical services not available in their destination.

Travelers who are considering adventure activities like skiing or scuba diving may want to consider adventure sports insurance.

It’s important to consider what your coverage covers before purchasing your policy. What are you looking for in an insurance policy?

What is not covered under travel insurance?

Travel insurance does not cover pre-existing conditions or costs for medical treatment that are not medically necessary. Before purchasing your travel insurance, make sure you are aware of what is not covered under your policy.

It is important to understand what you are not covered for, because it could be an additional expense if you are traveling and something happens.

For instance, if you have a pre-existing condition that needs to be treated while you are traveling, you may need to pay out of pocket for the medical expenses associated with that condition.

The other consideration is illegal activities. If you choose to take illegal drugs for example, then chances are your policy will be void. Likewise, even though alcohol may be legal. If you drink drive and get hurt, or get drunk and hurt yourself as a result, then the chances are you’re not covered.

Tips for making your travel insurance purchase

How much of your trip is covered by your credit card? If you only need to purchase travel insurance for certain parts of your trip, think about an incident-based plan.

What’s the deductible? Higher deductibles mean lower policy cost, but if something happens on your trip, you will have to pay the full deductible. Do you have the funds to cover that?

When do you plan to purchase your travel insurance? For me, I tend to purchase travel insurance as soon as I make a major purchase. This tends to be the airfare, as I like to lock that in early.

If the airfare is $1000 and the insurance is $100 then that seems good protection in the case of cancellation.

If you’re traveling with expensive electronics, such as cameras, computers and jewellery, make sure you purchase a plan that covers those items.

Use A Comparison Website

Just going to your travel agent or regular health insurance provider is rarely going to be the cheapest option. That doesn’t mean you shouldn’t use them. It just means you need to do some research first.

I like to use ‘Compare the Market’, partly because they are very good at comparing the different plans, but also because they are teamed up with ‘Compare the Meerkat’, which I think is pretty funny.

A comparison site will allow you to select options that you do or don’t need in your insurance.

For example, insurance to cover rental car excess in the case of an accident, can really bump up the price of a policy. So, if you won’t be driving during the holiday, then remove that bit. When I book large family holidays, I am generally the only driver, so there’s no need for the rest of the group to pay for this coverage.

In 2021, for Jacqui and I to go to Europe for a 6 week holiday, it cost $245AU. This is for a couple in their mid-fifties with no pre-existing conditions. By comparison the travel agent and health fund were 3-4 times this amount.

I should point out that we didn’t go on holiday in 2021because of travel restrictions, but I am constantly researching this sort of stuff.

In 2018, I got travel insurance for my elderly parents for a similar trip with lots of pre-existing conditions for about $650AU, when other insurers wanted $2000, or wouldn’t cover them at all.

Price Match

So, you’ve found the cheapest quote, and it matches all your needs perfectly. But you’ve never heard of this insurer, and frankly, you’re a little bit nervous about booking this over the internet.

I mean, who do I call in an emergency? What about expenses when I get back? I’d be much happier going with an established insurer that I can trust.

Fair enough. If that sounds like you, then print out your quote, including the fine print, and take it down to your preferred insurer. Ask them to match the price.

Sometimes they will. I’ve had that a couple of times now where they just matched it on the spot. I’ve also had a couple of instances where they couldn’t match the price, but they lowered theirs significantly.

Either way this leaves more money in your pocket.

Personally, I’ve had no problem with internet insurance. Most of them are underwritten by larger, more recognisable corporations. And if they are, then I’ll go with them.

The last point here is, once you have purchased your insurance, make copies of it. Carry a copy in your main luggage and hand luggage. Keep an electronic copy on your phone. Give a copy to relatives at home.

If you get seriously injured, you may not be able to give your insurance details. In those cases, the authorities will be looking to contact your next of kin. If they have a copy of your policy, then they can give the necessary details to ensure that you get the best care.

Final Thoughts

Going on holiday should be about relaxing. You shouldn’t have to spend the whole time worrying about the what ifs in life.

If your luggage gets lost, replace it. If you get a toothache on holiday, don’t suffer with it, get it fixed. These things are much simpler if your insurance is going to cover the costs.

The cost of travel insurance is a relatively small one compared to the peace of mind that it can bring to you.

Spend the money, and just relax.

Do you want some more tips to help get you on your way? Then check these out.

How to pack for overseas travel.

Budget family travel for beginners.

16 Tips to stay healthy while traveling.

How to plan a round the world trip.

Cheers and happy travels