Travel Insurance – Yes or No ?

Travel Tips

 

Travel insurance can be a high cost of your overall travel budget.  But is it necessary?

We have been travelling for over 40 years, as individuals and with our family and we have always taken out travel insurance.

These are the reasons why we take out travel insurance:

  • Medical cover – we all know that medical costs can be particularly high especially in the US. Medical evacuation is important to us as travellers, also having piece of mind that if we have to return home to Australia for a family reason that we have sufficient cover.
  • Theft of personal documents and luggage including computers, tablets, mobile phones, camera equipment
  • Loss of cash
  • Damage to luggage
  • Cancellation of flights
  • Interruptions of flights
  • Peace of mind if something does go wrong whilst you are travelling

For our RTW trip in 2013/14 we used 1 Cover Travel Insurance purchased here in Australia.

Did we claim during this trip? No.

For our trip which departed on the  9th March, 2015 to Ecuador,  México, Nicaragua, Costa Rica and Panama we created a spreadsheet for comparisons of travel insurance companies.

Whilst 1Cover Travel Insurance was not the cheapest, it did provide flexibility to insure against the risks that we personally felt we needed to be insured against. We were robbed in Ecuador losing our passports, credit cards, a laptop and some personal items.  It took us over two months to get our Australian and British passports renewed and the replacement costs were extremely high coming in at approx $900.  It was not an easy process with 1Cover for this claim of $2000 but in the end it was settled.

Our word of advice if this sort of situation occurs is to ensure that:

  • you report the theft to the local Police Station and have a written report prepared by them for you to submit with your claim
  • you create a spreadsheet and document all that has been stolen with copies of receipts etc – always carry copies of receipts on your smart phone or ipad
  • you get the name of the initial person you spoke to at the insurance company and that you have the claim number always at hand when dealing with the company
  • if you are not happy with the way the claim has been handled escalate higher until you get it resolved quickly
Cover Summary1 Cover 2015 12 month tripitrek Pioneer 2015fastcover comprehensiveWorld Nomads 2015
CostAUD1918AUD1593AUD1467AUD1998
Overseas Emergency Medical Cover AssistanceUnlimitedUnlimitedUnlimited$10 million
Overseas Emergency Medical & Hospital ExpensesUnlimitedUnlimitedUnlimited$1 million (emergency medical transport & repatriation)
Dental$500$500$0$1000
Additional Accommodation and Travel$50,000$10,000 combined with family emergency$50,000$0
Family Emergency$50,000$10,000 combined with additional accommodation and travel$0$3,000- compassionate emergency visit home
Emergency Companion Cover$50,000$0$0$3,000
Resumption of Journey$3,000$5,000$0$3,000
Hospital Cash Allowance$5,000$5,000$5,000$0
Accidental death$25,000$0$25,000$0
Permanent Disability$25,000$0$25,000$0
Loss of Income$10,400$0$10,400$0
Credit Card Fraud & Replacement$5,000$0$0$0
Travel Documents and cheques$5,000$5,000$5,000
Theft of cash$250$250$250
Luggage plus personal effects$15,000$5,000$7,500$4,000
Luggage Plus personal effects delay$250$250$250$600 over 12 hours
Cancellation Fees/Loss of DepositUnlimitedUnlimitedUnlimited$7,000
Disruption of Journey$1,000$2,000 travel delay expenses$2,000$5,000 (trip interruption costs)
Alternate Transport Expenses$5,000$5,000$5,000
Personal Liability$5 million$2.5 million$5 million$1 million
Rental Vehicle Excess$5,000
Domestic Pets$500
Domestic Service$500
Local Funeral Fees/repatriation of body$30,000

 

 

2 Comments

  • Travel insurance is a must. The way I see it, if you can’t afford the travel insurance then you can’t afford to go. Yes, it may seem expensive. But hospital bills, medical evacuations, and so on, can be much more expensive. It gives you peace of mind, while travelling. Even if it’s not in the forefront of your mind, there is always going to be that little nagging worry about not having travel insurance.

    • Totally agree. We certainly hear some horror stories whilst on the road about travellers who have risked going off and enjoying their journeys and have not taken out travel insurance. Happy travels, Jane and Duncan

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