How do you know which is the best travel insurance policy for you?
Everybody’s trip is different and one size doesn’t fit all when it comes to finding a policy. You should find one that’s a good price, and which offers a range of benefits to suit your holiday.
Don’t be swayed by price alone
A common mistake made by travellers is to buy the cheapest policy they find. This is not ideal as you might find you’re not adequately covered. The key is to get the right level of cover at the best price.
Use a comparison website
Comparison websites are a convenient way to find the best travel insurance deals on the market. You’ll be able to compare benefits, levels of cover and the costs in one simple table.
What benefits should I look for in a policy?
Policies come in all shapes and sizes. If you travel more than twice a year you should consider an annual policy as these offer far greater value for money. You get cover for a whole year, for as many trips as you like, including all your domestic holidays.
If your main concern is overseas healthcare fees then you could opt for a medical only or basic policy.
Otherwise the best option to cover all bases is a comprehensive policy which will cover you for Accidental Death, Alternative Transport Expenses, Cancellation, Luggage, Overseas Emergency Medical Assistance, Permanent Disability, Personal Liability, Rental Vehicle Excess, Resumption of Journey, Theft of Cash, Travel Delay Expenses, Travel Documents & Traveller's Cheques and more.
Look at the coverage available to you and think what you’ll need. There’s no point paying too much, for cover that you don’t.
How much excess should I pay?
The amount of excess you pay in the event of a claim varies. You can often get cheaper premiums if your excess is higher, or alternatively you can choose to remove your excess but this will mean paying more upfront. Make sure you’re comfortable with the excess amounts you might have to pay.
Different underwriters = different benefits
Even if you haven’t heard of a particular insurer before, they’re probably underwritten by a big company. For example 1Cover and Columbus Direct are underwritten by Lloyds. AA travel insurance, Worldcare, Webjet and NZ Travel Insurance are underwritten by Allianz Australia Insurance Limited. Southern Cross travel insurance underwrite themselves and State Travel Insurance and The Warehouse are underwritten by IAG.
Insurers with different underwriters are likely to have differing products than those with the same. So when comparing policies make sure you compare two products that have different underwriters to get a good idea of what’s on offer in the market.
Understand the exclusions
Travel insurers often get a bad rap because of unpaid claims, but a lot of the time these complaints are due to situations that were never covered in the first place. It’s easy to avoid placing yourself in situations that your insurer will not cover if you understand your policy thoroughly. The small print of your policy will explain the exclusions- so read it!
Spending a little time to research your policy before you buy will ensure you find the best travel insurance for your trip.