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 Summary||1 Cover 2015 12 month trip||itrek Pioneer 2015||fastcover comprehensive||World Nomads 2015|
|Overseas Emergency Medical Cover Assistance||Unlimited||Unlimited||Unlimited||$10 million|
|Overseas Emergency Medical & Hospital Expenses||Unlimited||Unlimited||Unlimited||$1 million (emergency medical transport & repatriation)|
|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|
|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 Deposit||Unlimited||Unlimited||Unlimited||$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|
|Local Funeral Fees/repatriation of body||$30,000|
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