Travel insurance: Things you should know before your next trip
With overseas travel returning to normal after a few disrupted years thanks to COVID-19, more and more Kiwis are heading overseas for a much-needed holiday. Whether it’s to escape the winter chills or to embark on their big OE, New Zealanders certainly love to travel.
Unfortunately, travel often goes hand in hand with unexpected delays, cancellations, and theft. To ensure you’re protected overseas, travel insurance is the way to go. But there are some considerations that you’ll need to keep in mind when purchasing travel insurance.
Pre-existing health conditions
When you’re taking out a travel insurance policy, make sure to check the coverage for any existing medical conditions you may have. Usually, insurers won’t cover pre-existing illnesses or injuries unless you’ve spoken to them first. Some conditions may not be covered at all, but if your condition is under control or you haven’t been hospitalised for it in the last year, it may be able to be covered.
Adventure activities
Because of the higher risk of injury, some travel insurance providers won’t cover adventure activities such as scuba diving or skiing. If you know you will be engaging in any kind of adventure activity, it’s best to check in with your travel insurer first to see if they’ll offer cover. Some insurers will cover you, but there may be additional charges.
High-risk destinations
If you’re heading to a high-risk country, you may need to pay more for travel cover. When you purchase travel insurance, you’ll usually be required to list every country you’re going to. To make sure you’re covered everywhere you go, select each country carefully, including any brief stopovers.
Single-trip vs. multi-trip cover
If you’re heading overseas for one trip, a single-trip policy will serve you well, but if you’re planning multiple trips throughout the year, you might be better off with multi-trip cover. A multi-trip travel insurance policy can save you money as it provides cover for unlimited trips within a 12-month period; the only catch is that each trip is restricted to a maximum period. For example, you might only be covered for 60 days per trip.
Medical expense exclusions
It’s important to be aware of what is and isn’t covered under your policy, especially when it comes to medical expenses. If you get injured or fall ill, travel insurance will cover the cost of treatment at an overseas doctor’s clinic or hospital; however there may be some caveats. For example, you may not be covered if you’re taken to a private hospital instead of a public one or if you injure yourself while intoxicated.
Personal belonging limitations
Read your travel insurance policy to find out what the limit is for personal belongings. Some travel policies cap claims for your belongings at $8,000, which may not be enough if you’re travelling with expensive items. It’s important that you understand how any valuations may be calculated if you need to make a claim on an item; you may not receive the item’s original purchase price as insurers often factor in depreciation.
Booking cancellations and delays
Travel insurance is a lifesaver if you have to cancel your trip or cut it short due to an unexpected event or illness. However, it’s essential to check for any instances in which you might not have cover. Your travel insurance might not cover you if you fail to check in on time or you didn’t organise the necessary visas for your trip.
Like any insurance policy, travel policies can be difficult to understand. Instead of spending hours poring over your policy to figure out what’s covered and what’s not, you can choose to purchase your travel insurance with a financial adviser by your side. They’ll be able to help you choose the right cover for your activities, your destinations, and your medical conditions to make sure that you’ve got cover when you need it.
Give us a call on 0800 001 866 to book a free, no-obligation meeting to discuss your travel insurance options. We’re here to help!
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