Travel Insurance: 6 Most Frequently Asked Questions

Everything about travel insurance

What is travel insurance?

Travel insurance is that band-aid that helps you in bad situations. When you are traveling and nobody can help you other than this band-aid itself.

what travel insurance

Travel insurance is meant to include medical costs, trip cancellation, lost baggage, flight accident and other losses incurred while traveling, either abroad or domestically.

You can buy travel insurance at the time you are booking your trip to cover the exact duration of that trip. Also, a multi-trip policy can cover an unlimited number of trips within a fixed period of time. Some policies offer lower and higher medical-expense options. Majorly, the higher one is for countries that have high medical costs. Such as the United States, Australia, Canada, And European countries.

You can get free travel insurance from some credit card issuers, However, you need to pay all your travel arrangements from that card. Also, you need to take care of what is covered and excluded by your policy. There are exceptions, limits apply and other issues as well.

What vacation insurance covers?

All policies usually cover basic needs like a lost passport, missing luggage, flight delay, medical emergency, etc.

Common coverage

Optional Coverage

  • Pre-existing conditions (e.g. asthma, diabetes)
  • Sports with an element of risk (e.g. skiing, mountain climbing, scuba diving).
  • Travel to high-risk countries.
  • Rental Car Coverage.
  • Cancel for Any Reason Coverage.

Required coverage

In some countries, it’s mandatory to get enough coverage insurance policy for anything that goes wrong while you are visiting that country. To avoid the costs of your medical care. They will expect you to have a proper insurance plan.

  • Traveling to the USA, you are required to have insurance.
  • Schengen areas required to prove that you have enough insurance coverage while applying for the visa.
  • Generally, most countries likely to ask you a minimum level of travel insurance during visa application.

Common prohibit

  • Most travel insurance excludes pre-existing medical conditions like asthma, diabetes.
  • Driving or riding vehicles without a license.
  • Traveling to receiving medical treatment.
  • Injury or sickness due to the usage of alcohol, drug, sporting activities.
  • Emergencies like war and terrorism are usually excluded.
  • Some policies exclude coverage in some specific countries due to high risk.

Which holiday insurance is best?

Before selecting travel insurance, you need to know about

  • Your medical condition
  • Essential requirements from the country you are traveling
  • Customer care availability
  • Claim settlement rate of that company
  • Your budget

Your medical condition

This is very important before selecting your insurance policy. If you have any pre-existing disease e.g asthma, diabetes, etc. then you need to know if your policy covers that or not. Never miss mentioning pre-existing disease to your insurance company while applying otherwise they won’t be able to help you.

Some companies allow you to get benefits from the policy. You may have to pay an additional premium for that to include in your policy. On the other hand, most companies don’t allow the inclusion of existing disease. Therefore, you have to pay for the emergency cost that occurs from your pre-existing disease.

It’s better to get a policy that includes your existing diseases otherwise you may have to pay from pocket if anything goes wrong. You may go broke if this happens because getting medical treatment in the west and almost all the European countries are expensive. Obviously, if that’s not covered in your policy, cutting your trip short is the only option you will have.

Shortlist at least highly customer rated 10-15 such policies that allow you to travel with pre-existing diseases abroad.

Essential requirements from the country you are traveling

You need to know the minimum coverage you should have in your policy. For example, minimum coverage of at least 30,000 EUR (equivalent to 50,000 USD) is required for a two Schengen visa. Some countries may ask you X amount of medical coverage or Y amount of total coverage.

All visa related information is available online for every country’s official website. Also, you are advised to get all the information from the authorized source only like govt. websites.

Now you can narrow down your list from the previous section. Shortlist the top 10 customers rated insurance companies that are promising and fulfill your requirements.

Then, move to the next section.

Claim settlement rate of that company

Getting a claim settlement in time is an essential part of buying any policy. Choose companies having claim settlement rate more than 95% to avoid any hassle. Because there are many companies having promising policies but their clam settlement rate in between 75-85%.

75-85% rating may look promising but you need the best friend in your bad, not the one who is similar. Also, their response time is vital when you met with an accident. Go through online portals where you can compare there claim settlement and response time as well.

Your budget

The budget is also very important because not everyone can afford expensive policies. I would advise you to select 5 companies shortlisted from the previous section. This way you will get the best and the cheapest available policy based on your requirements.

There are many online websites that allow comparing all the policies in one place. Also, the premium you’ll pay according to your pre-defined selections in the filter options. Additionally, you can ask all the information on their customer care support. They will direct you in the right direction as per your needs as they are qualified professionals. You’ll be on the recorded when you call their customer support.

You’ll get the best possible solution for your needs as they completely depend on customer satisfaction. Also, you may get an offer like a free health checkup or something similar.

However, you can call and ask directly to any particular insurance company on their customer support. But you’ll get the information about their products which is a drawback in my view. Plus, correct information is provided because they record every call to customer support.

Meanwhile, never take an avoidable risk when traveling abroad because your policy may get void. Always read their Do’s and Don’ts.

Stay safe and hope nothing goes wrong.

Where to purchase an insurance policy?

Basically, you’ll get two options online because almost all the best-rated companies are available online. You can buy travel insurance through insurance agents and directly from an insurance company as well.

Insurance agents

Insurance agents basically allow you to compare all the available insurance companies based on premium, claim coverage, and pre-defined filters if you have selected any. Buying a policy from them is easy and you get to compare many companies in one place.

You can call and ask your questions to their customer support. Whatever query you may have, you’ll get the best possible solution. Sometimes, they offer goodies worth Rs 3000($ 50) for a free health checkup. Which you may not get from companies.

If you don’t want to buy a policy from insurance agents then compare the policy on their web portal or even call them and buy from the company directly. This way you can easily identify the best available policy for you.

Directs from insurance companies

Buying travel insurance from the company directly is also easy and continent. All insurance companies have websites and there you can calculate the premium before buying as well.

Furthermore, for any assistance, you can call their customer support. They will inform you of the best possible solution and that will help you buy your policy.

How To Make a Claim?

Formalities for making a travel insurance claim

For ease of the procedure and your convenience, insurers normally attach the claim form with the policy document. This will contain the list of documents required in case of a claim and also the contact details including phone numbers of the claims administrator either in the destination country to which you are traveling or in another country that is designated to receive and process your claim intimation.

Since this is a package policy with various covers and procedures it is very important that you familiarise yourself with the procedures and documentation in case of a claim.

Answer sourced:- www.policyholder.gov.in

For more refer:- Govt. website

Is travel insurance worth it?

70-80% of touristy countries don’t allow entry without travel insurance. Moreover, you need to get travel insurance while applying for a visa to most from these countries. However, some countries like Thailand, Malaysia, etc allow entry without travel insurance but that fine if you want to save money to travel on a budget. But do you really think that’s good not having insurance at all?

Importance of travel insurance revealed

Firstly, travel insurance is the only friend or family member you will wish while traveling in foreign countries. Why? Countries in the west, for example, USA medical treatment is expensive. Even, you won’t be allowed to apply for a tourist visa if you don’t get insurance before applying for a visa.

Instead, traveling without travel insurance, get the cheapest insurance from a good company. That can cover some basic emergencies like luggage miss place or loss, lost passport, medical emergency, flight delay, etc. So that you can still travel without worrying about the budget.

Never underestimate the power of travel insurance. Bad situations come when least expected. Something is better than nothing.

Conclusion

Travel insurance is as important as your luggage or passport. Therefore, never go on vacation without insurance policy. As a result, you will be covered for bad situations like lost passport, baggage loss or medical illness. In other words, a holiday without insurance is inviting unwanted situations you won’t be comfortable with.

However, if your budget doesn’t allow you to buy a top-rated policy then go for the cheaper insurance. As a result, you’ll get cover for basic emergencies as well as you won’t be allowed to enter without travel insurance in most parts of the world. Always remember these 5 simple points when looking for an insurance policy.

  • Your medical condition
  • Essential requirements from the country you are traveling
  • Customer care availability
  • Claim settlement rate of that company
  • Your budget

And never buy any kind of insurance without comparing at least 5-10 companies. You may get surprises sometimes.

For any query or suggestion, please leave a comment down below.

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