Every trip away from your home whether it be to the interstate, overseas or another city, there involves some potential risk, planning and expenses. However, all these can be covered by having a travel insurance. It helps in taking care of the financial losses that may be affected during the trip, before or after it. Such as travel modifications, cancellation, medical expenses, theft, etc. Therefore travel insurance should be treated as a priority even if you are to visit regularly or occasionally or a once in a lifetime trip.
A travel insurance policy must be purchased as soon as you have paid for your trip because that way if anything comes up this policy can cover it for you if the policy mention covers the problem causing the cancellation. Most policies offer coverage for the whole family and couples, and some offer annual policies for frequent travellers.
Different Types of Travel Insurance: Which One You Must Prefer?
Three of the travel insurance policies are given below:
Domestic Travel Insurance
Domestic travel insurance covers for delays, loss or damage to luggage, instant cancellations, personal effects and liability. It also provides coverage for rental vehicle insurance in which excess is paid for unexpected damage to the cars and also for the emergency accommodation. However, some activities such as adventurous sports may be excluded, or they may require an additional payment of the premium amount.
International Travel Insurance
Most of the international travel policies available out there cover overseas medical and dental expenses, lost or stolen luggage, liability protection, disability, and costs that arise if there are delays, cancellations or rescheduled plans. Some insurers also offer additional services such as 24-hour medical emergency which can make a big difference if you are travelling and worried about the quality of treatment.
Medical care in some countries cost extremely expensive. Sometimes it’s not easy to get admitted and receive treatment considering the guarantee of payment. But when you are travelling overseas, you are liable for covering your medical costs.
According to the data collected by the Department of Foreign Affairs and Trade (DFAT), the daily hospital costs in Southeast Asia exceed $800 regularly, whereas the cost would go above $10,000 in Europe. The cost of medical evacuations in U.S ranges from $75,000 to $95,000 and sometimes it goes up to $300,000, whereas in Bali, it covers up to $60,000.
Travellers who are not covered by insurance are liable for covering the medical and associated expenses they get overseas.
3. Credit Card Travel Insurance
Financial institutions, sometimes, provide travel cover as part of their credit card services to their customers. It helps them to use their credit card which is linked to the travel insurance company. Whichever insurance product you opt for, it is important that you read the Product Disclosure Statement (PDS) very carefully to determine what extent the policy will cover your policy terms whether there are any requirements you need to meet to qualify for this cover.
You should make sure that the scale of the cover provided by your financial institution is going to be enough for the place you ought to visit.