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With a large number of providers, policies and options available it can be hard to know how to compare travel insurance, and as a result many travellers simply compare a few different quotes and leave it at that. Though price is definitely important, a policy may not be suitable if it does not include adequate levels of cover and emergency assistance. A number of points including price should be considered in a more complete travel insurance comparison.
Price is important, but not only price
The main factors that determine base travel insurance premiums include the destination (or destinations), trip duration and the age of traveller (or travellers). Loading amounts may be added to the base premium if the traveller has any existing medical conditions, and for options such as specified items cover or removing the excess. If travelling internationally and/or within Australia regularly, annual multi-trip travel insurance may be a more cost-effective alternative.
Adequate levels of cover
It is a common misconception that travel insurance policies largely offer cover that is more or less equivalent, when in reality actual benefits and levels of cover can vary significantly between providers. Credit card travel insurance, for instance, often provides only very limited cover. With any policy it is essential to compare the travel insurance cover and to be aware of exactly what is covered and what is not covered.
To compare travel insurance properly it is necessary ask whether the cover included with the policy will be adequate should something unexpected occur. Consider the destinations you will be travelling to, the activities you will be engaging in and the personal effects you will be taking with you. Will the set limits on levels of cover detailed in the product disclosure statement be sufficient? Depending on the policy, benefits may include cancellation fees, overseas medical and hospital cover, emergency assistance, luggage cover, personal liability cover, and rental vehicle insurance excess.
Exclusions and terms & conditions
The product disclosure statement / policy wording will detail any exclusions, as well as applicable terms and conditions. In any case it is important to be aware of exactly what is covered and what is not covered, but in particular compare whether a travel insurance policy extends to any activities you intend to participate in, such as snow sports, extreme sports or a cruise.
Established insurance provider
In addition to cost and exactly what is covered, travel insurance should provide pre-trip information, 24/7 emergency assistance, and rapid claims processing. In the event that something unexpected does occur it is important that the emergency assistance provider has worldwide capabilities to respond quickly, and in the event that it becomes necessary to make a claim it is important that the underwriter is an established and reputable company. |
