Travel Insurance: Why you should bother

Words by: Victoria Ugarte

Travel insurance would have to be just about the most unglamorous aspect of any travel experience. In fact, if you’re anything like I was in my youth, your eyes would be glazing over right about now. But before you feel the urge to turn the page, hang on for a minute longer and read the following two stories below:
My first story involves an Australian man who went for a vacation in Asia. As many Australians do, he travelled without any insurance. I guess he didn’t feel the need to. After all he was healthy and probably felt secure in the fact that the Australian public health system is quite good in comparison to most countries. But while on his Asian vacation, this man was involved in a car accident and sustained some very serious injuries. He had to be repatriated to Australia so that he could receive the level of care that he required. While he did receive a better level of care in Australia, his life could not be saved. While his death was devastating for his family, the tragedy didn’t end there. His family were left with AU$200,000 worth of medical expenses to pay, forcing them to sell their family home to settle the debt.

Feeling rather healthy and determined to argue the point that nothing will happen to you on your travels? Here’s another travel insurance story, this time, showing how adequate travel insurance can salvage an unfortunate situation. This one hits closer to home for me.

Nine years ago, Peter, my husband, went on a journey of a lifetime to South America, a six-week motorbike adventure with a bunch of guys that took them across Chile, Argentina and Bolivia. He was fit, healthy, and had been planning and looking forward to this trip for years. Sounds amazing right? But Peter never made it passed the first leg of the trip. Having strained his lower back muscles while helping another traveller with their luggage in Santiago Airport (Chile), he thought the niggling pain would go away if he just did some stretches. However, his continuous riding, all day every day, aggravated the injury further. Ten days into the ride his back completely seized up, to the point where he was unable to get out of bed to go to the bathroom. Stuck in a remote town in Argentina, he had to be picked up by ambulance and transported to the city of Salta (Argentina). From Salta, Peter made immediate arrangements to fly back to Australia. The cost of his 16-hour ambulance ride: US$2,000, payable upfront, in cash. The cost of cancelling the trip in terms of pre-paid accommodation, food, and motorbike rental: US$13,000.

Thankfully, Peter has always been a stickler for travel insurance. He had made the appropriate arrangements prior to his trip, so that he was able to claim some of his medical expenses when he returned to Australia. And although the cost of the airfare was not redeemable, he was able to get a refund on the four weeks’ prepaid accommodation, motorbike rental and food.
 
Western travellers are used to relying on their country’s public health system, and carry this sense of security and entitlement with them when travelling overseas. Many hold the belief that their governments will look after them if they get into trouble. What they fail to consider are the potential costs if things go wrong.
 
Ready for the cold hard facts? According to the US Travel Insurance Association, only about 30% of Americans purchase travel insurance. The good news is that it’s an increase of 10% since 9/11. As for Australians, a recent survey suggests that about one-third travelling overseas have no insurance. This figure equates to more than 2.2 million Australian travellers, based on official departure statistics. Amazing, huh?
 
Flight insurance, trip cancellation insurance, baggage insurance, credit card coverage, medical insurance. Where does one start? Let me simplify it for you:
 
Types Of Insurances:
 
The first thing that you must do is to find out exactly what you are already covered for from your own health insurance policies, homeowner’s policies, and credit card memberships. Some medical insurance policies cover medical emergencies overseas while others do not. Some homeowner’s policies cover baggage loss. Many credit card companies cover medical insurance and baggage loss to the premium members, or may do so for an extra fee.
 
At the very least, your travel insurance should include medical cover for any injury or sudden illness abroad, 24-hour emergency service and assistance, and repatriation back to your country if necessary. It should also cover personal liability should you be sued for damages or for causing injury. Your policy should cover lost and stolen possessions, as well as trip cancellation and curtailment cover. If you’re into high adventure travel that exposes you to more than the standard travel risks (i.e. jet skiing, mountaineering, motorbike riding, etc.) then you will require extra cover.
 
Shop around and take the time to find the right product for the right price, rather than choosing to fly without insurance altogether. Cheaper policies will have less cover, so you may have to weigh up if it’s worth the initial saving. If you’re a frequent traveller, and will more than likely be travelling several times throughout the year, you can get a multi-trip insurance, which will save you time and money.
 
Regarding which travel insurer to go with, always look for one that is independent from your tour operator. Many tour operators offer insurance, often at lower premiums than those charged by outside insurers, which can be tempting. But if the operator goes out of business, you can rest assured that the last thing they will do is cover your claim.
 
Travel Insurance: In A Nutshell
 

1. Find out what you are already covered for at home: Check health insurance policies, homeowner’s policies, and credit card policies for lost or stolen cards. Make sure that you read the fine print and have a thorough understanding of what you are covered for.

 

2. Travel insurance must include: medical cover for any injury or sudden illness abroad, 24-hour emergency assistance, repatriation back to your country, lost or stolen possessions.

 

3. Get extra cover if you are into high adventure travel.

 

4. Cheaper policies will have less cover, so weigh up if it’s worth the initial saving.

 

5. Stolen Passports: Always find out what your government’s procedures are for the replacement of a lost or stolen passport in a foreign country prior to your travels and before taking out insurance on it.

 

6. An insurance that covers you for flight cancellations is the least necessary travel insurance available if your flight is a short or inexpensive one. However, it is worth it if you have invested $20,000 on the trip-of-a-lifetime. This insurance should cover you if you get sick, if your trip is ruined due to a natural disaster, or if your travel provider or tour operator goes out of business.

 

7. Policies will not cover ‘war’ or ‘threats of war’, so always check media alerts and government travel advisories so that you can make a well-informed decision about whether to travel to a specific region or not.

 
Victoria Ugarte
 
Victoria Ugarte, the Intrepid Traveler, is becoming known around the world as one of the most recognised faces of travel and culturally correct behavior. Founder of the widely popular travel blog, Postcards From Millie, she spends three months out of every year travelling the world, keeping her readers posted on exciting destinations, the latest travel tips, and inspiring them to ‘Explore. Discover. Live’. Based in Sydney, Victoria has authored three books with Amazon, including Explore My World: The Travel Bible For Women, and Culture Savvy for Women: A Complete Guide To Culturally Correct Behavior round the World. www.ExploreMyWorldTravel.com.