Travel insurance is purchased prior to going on holiday. It's a safety net to cover unexpected expenses if any unfortunate circumstances should arise. There are many different types of insurance policy, and it's always wise to read the terms and conditions before travelling to see exactly what is covered.
Types of Travel Insurance
Each policy differs greatly from company to company so background research into what you require is greatly recommended. For example, if you were planning to go skiing, then you would need to look into getting a higher risk plan to cover you for any medical costs if you were to fall and injure yourself. Many popular insurance brokers include winter sports as an additional extra to a standard travel insurance policy.
The main type of policy is for a single holiday only. You'd let the insurance company know when you're leaving and returning, the policy would then last only for that time period.
It is also possible to get insurance which lasts over a long time period such as annual travel insurance. An annual travel insurance policy means that no matter how many holidays you go on over the course of a year, you'll be covered. Generally, if you go on more than two holidays a year annual travel insurance works out cheaper and it is more convenient than having to take out several single-trip policies. However, be sure to read up on the terms and conditions of the insurance policy as it at state that you will only be covered for a specific amount of days per holiday.
In addition, if you plan on holidaying in Europe it will be cheaper for you to take out a European travel insurance policy than a worldwide insurance policy.
If you are over 65 or over 70 and plan on going on holiday you will find travel insurance tends to be quite expensive. This is because insurance brokers perceive your age as an added risk as it may make you more susceptible for filing for a claim. Sadly, this can lead to many healthy yet over 65 individuals not being able to get the cover they need for their holiday. Nevertheless, there are a number of insurance brokers that offer special insurance policies for those who are older than 65 or 70 which include extra medical care options.
In short, there are a various types of travel insurance:
- If you are practising a dangerous sport on holiday, ordinary travel insurance will not be enough.
- You can purchase both single trip and annual travel insurance.
- Its cheaper to get European travel insurance than worldwide travel insurance.
- There are also bespoke policies tailored to your needs such as over 65 travel insurance and over 70 travel insurance.
Things to Remember
When you are comparing travel insurance policies, be sure to disclose any medical conditions that you may have, such medical conditions may include long-term health conditions like asthma or recent injuries such as a broken arm. Although it may be tempting to downplay any medical conditions in order to secure a cheaper premium, it is not a wise idea. Indeed, this downplaying may invalidate your insurance policy should you have to make a claim.
Most companies will refuse to cover issues caused by pre-existing medical conditions, or even war and terrorism. The reason they don't is because most companies do not feel as if they are able to accurately evaluate the risk of it happening, and therefore are unable to give a reasonable price. This is why instead, they offer higher priced policies to cover more specific incidents.
Key points to remember:
- You will need to purchase the insurance before going on holiday.
- Reading the terms and conditions before travelling will potentially save you plenty of money.
- Look online for the best deal possible. If in doubt, then call the company directly to confirm the details. Get as many different quotes as possible and compare what they offer before making your final decision.
- The cheapest policy may not be the best policy to get. It may not cover you where you are going, or what you will be doing.
- If going on holiday with family, or in a group, make sure that the policy covers everybody going.
- If you do need to claim, make sure you tell the insurance company straight away to avoid having your claim potentially declined.
- Before buying insurance, let the insurance company providing you with a quote know about pre-existing health conditions as this may change the cost of the policy.