Do you need to buy travel insurance? It can happen to anyone, an accident, that is. Or you thought you would never get sick during vacation.
Well I’m here to tell you that unless you’re Superman, yes, you do need to buy travel insurance.
It’s a pricey expense in your travel budget but no one is immune to sudden calamities, catching some tropical bug or worse, hurting someone else by accident.
Not buying insurance can be infinitely more costly when all it’s said and done. I must admit I hadn’t done the proper homework until now, writing this article.
The best advice about travel insurance
First of all I am no expert, so the best advice I can give you is to talk to a trustworthy insurance advisor and explain your needs and your budget thoroughly.
There are hundreds of different plans and options they can offer according to your specific needs, so getting first-hand advice is key.
Even if you’d rather buy online I recommend that if you can, talk to a real advisor.
Unfortunately, I regret to say, travel agents have not provided me with thorough information (just my experience), so asking for someone from the insurance company would be my best bet.
Why do you need to buy travel insurance?
So far I’ve spoken mainly about health travel insurance, but that’s not the complete picture of what you may need.
Nowadays you can expand your insurance to cover you for:
1. Medical expenses
These include any medical requirement you may have, from a case of upset stomach to accidents and surgery.
They also cover evacuation (in case you need to be treated elsewhere) and repatriation of your remains in case of death.
2. Extreme sports and hazardous activities
Some policies may waiver your coverage if you got injured while rafting, kayaking, paragliding or performing any activity that is considered extreme.
3. Personal liability
In case you end up hurting a third party by accident, you need to be covered.
4. Lost or stolen gear
You can protect your most expensive gear but you need to check there’s usually a limited value per item.
Items can include electronic gear, baggage or jewelry.
5. Cancellation
You can buy a policy that includes cases of cancellation in case you get sick before your trip or your boss just came up with a clever excuse to keep you near at the last minute.
For the purposes of this article, I’ll focus on travel health insurance.
Where to buy travel insurance?
First, find out if your current health insurance plan (including government health plans) covers you overseas.
What does it include and what doesn’t it? Again, consult with your insurance advisor.
In case your current health insurance plan doesn’t cover you while on travel, or the coverage is limited, then as far as I know, there are three ways to get travel insurance:
1. Credit cards
Generally speaking Visa and MasterCard credit cards offer some health coverage abroad, for up to 90 days.
That means that if you are the holder of a Visa or MasterCard credit card, you already have some health insurance coverage while on travel.
You do need to speak to your bank advisor to clarify and be absolutely positively sure of the policies.
Some credit cards require you to buy the travel package or at least plane tickets using your credit card, in order to be activated.
2. Travel insurance companies
There are several like TravelGuard, World Nomads, Assist Card or Universal Assistance, where TravelGuard and WorldNomads have the best reputation.
I know for a fact that even with the cheapest plan, TravelGuard has excellent service.
You can buy these on a “by trip” basis, depending on how many months your trip will be, or you can actually add it to your current life, car and home insurance package and pay a monthly fee.
3. Travel agents
You may be in luck and find a travel agent who can sell you really good travel insurance with great service, coverage and information. I mean, miracles do happen ;-)
When to buy travel insurance?
As I said before, you can pay monthly if you include your travel insurance in your personal insurance package.
Or you can buy it when you pay for your plane tickets.
What affects the price and conditions of travel insurance?
There are several aspects that affect how much you are going to pay and how well you’ll be covered:
1. Country:
Are there good health facilities at your country of destination? Are there any specific laws about health care for non-residents?
If you need to be evacuated to another country, does that second country require you to have a visa?
What are the health practices according to this country?
For instance in the US you will be dismissed from the hospital and the bill will be sent to your hotel, while in the UK and many other countries, you are required to pay before leaving the facility.
2. Hospital policies:
Most likely hospital personnel will ask you how you intend to pay for the services at which point you will show your health insurance card.
Some hospitals will accept this card while others won’t have anything to do with it, as you are expected to pay in full, and then make a claim to your insurance company.
Sometimes they’ll call the number on the insurance card to make sure you’re covered.
3. Hospital agreements:
Some hospitals abroad have special agreements with some insurance companies. You need to find out which hospitals do at your place of destination beforehand.
Being admitted in a hospital that has a special agreement will make all the following paperwork, much easier.
4. Policy coverage:
What does your plan cover? Does it include injury due to terrorist attacks or acts of nature?
Does it provide financial protection in case your tour company goes bankrupt while your vacation?
Does it cover you if you are found to be drunk or under the influence of drugs?
Does it offer a 24-hour emergency telephone hotline that you can call?
Are pre-existing conditions covered or not?
5. The insurance company:
Every insurance company is different and they will bundle different options for you at different prices.
They also have different procedures and instructions so that you can make your claim, and, let’s face it, they’re not there to make it easier for you.
The larger and the pricier the company and its plans, the more likely the service and coverage is better.
Travel insurance is one of those cases in which you may want to research fully before buying a cheap online plan.
How to use your travel insurance plan?
Let’s imagine you’ve had a sprained ankle or an intestinal obstruction. You need to go to the hospital.
Depending on all of the aspects above, the service can work one way or another.
For platinum, gold or premium plans, the hospital may deal with the insurance company directly and you don’t have to worry about it.
For less expensive plans, you will usually be required to pay your bill in full and later on (after you’ve left the hospital) make a claim to the insurance company, so that you can be reimbursed.
That means that if you need surgery and the bill is $25.000 you do need to come up with that amount of money the day you are dismissed from the hospital.
Yes, crazy as it may seem, that’s the deal. You may have to call home so that people can deposit money in your account or burden your friends overseas.
In any case, there is a form that is included with your travel insurance policy; it’s generally called the “claim form” or “claim request” or “request form” where you add your bank account information.
It’s usually mandatory for this claim form to be printed, filled out and signed by your treating physician, in order for the claim to be valid.
You also need to carefully save every paper and receipt you get from the hospital, because you need to add them to your claim documentation which also includes your health chart from the hospital.
You also need to be clear on what the correct procedure for the claim is.
Some companies require you to mail by courier the original paperwork to an address in Europe, like Madrid or Berlin (It may not even be in the country of your trip).
Others accept that you scan the documents and send them by email.
How to prepare for an emergency?
Always always always carry your ID (copy of passport) and insurance card with you.
Also, include a small paper card with the name of a contact person at home and the information about your allergies, blood type and any pre-existing conditions.
If you need to go to the hospital, you need to remember to bring with you your passport, insurance card and the claim form. That is, if you are awake and aware, of course.
Bottom line
- You need to buy travel insurance before your trip.
- You need to be absolutely crystal clear on what your policy covers and the proper procedure to make a claim.
I hope this article has been as useful for you as it’s been for me.
I always go confident in the insurance coverage of my credit card, but never took the time to really understand the terms and the fine print.
What about you?
Have you had to go to the hospital and use your travel insurance card?
Tell us your experience in the field below or in Facebook!
Resources
For even more in depth information check out:
many travel policies do not cover “work” and that includes unpaid “work” so volunteer travellers beware – check your policy covers you
Thank you so much for the comment, Sallie!
The guys at http://www.travel-peopleandplaces.co.uk/ just informed me that some insurance policies do not cover volunteer work, so research in advance. Thanks!