Top 10 travel insurance tips

THE world of travel insurance can be difficult to navigate, with travellers often left in a nightmare situation when buying the wrong policy.
So, to make it easier for you, we've been in touch with travel industry experts and put together this top 10 list of things you might not know about travel insurance - and the things you need to avoid.

1. Australians have no legal entitlement to financial assistance from the Government if something goes wrong while overseas

Medical costs you may be hit with while overseas are not covered by Medicare and can end up being very expensive.

"If you fall ill in countries like the US - with its sky-high health-costs - you will be hit up for huge medical expenses if you don't have adequate insurance cover," Doc Holiday said.

While medical insurance should be a top priority, Government website Smarttraveller.com says you simply shouldn't travel without travel insurance of some kind.

"Regardless of how well prepared, healthy and fit you are - if you cannot afford travel insurance, you cannot afford to travel," the Smarttraveller website states.

2. You can insure your iPhone

The growing cache of iPhones, laptops and other electronic devices carried by Australians has fuelled a surge in travellers seeking extra insurance cover.

"These items not only posed a greater risk of theft, they could also take a traveller's total luggage value beyond the limits of their insurance," Travel Insurance Direct's (TID) Ian Jackson said.

For example, TID's standard policies offer $12,000 luggage cover, including up to $4000 per item for cameras, laptops and hand-held computers, and up to $700 for other individual items.

3. Be prepared to claim

If you get robbed on your trip, notify the police within 24 hours and keep a copy of the police report - this will enable you to claim more quickly, according to travel.com.au's General Manager - Brand, Lisa Ferrari.

Interestingly, you can't claim a personal item that an animal has stolen - so watch out for those monkeys.

4. Medical condition loophole

You can apply for cover for cancellations and additional expenses that arise due to an existing medical condition.

While terms, conditions and an additional amount payable may apply based on your medical appraisal, it's definitely worth checking out and could save you heaps, Ms Ferrari said.

5. Insure yourself in "safe" countries too

A survey commissioned by Bupa Australia - which provides travel insurance under the brands MBF, HBA and Mutual Community - has found that 55 per cent of respondents purchase travel insurance based on their perception of a country's safety.

But Bupa's Shane Williamson warns travellers not to tempt fate.

"Some Australians believe they only need travel insurance if they're running with the bulls, or engaging in daredevil behaviour, which is simply not true," he said.

"The reality is that we processed over 2500 travel insurance claims last year, and the majority of incidents occurred in destinations that were perceived as safe, with most claims related to common occurrences such as lost luggage, travel cancellations, or requiring medical treatment."

6. Don't pay more just because you're old

Some of Australia's most popular over-the-counter insurance policies are more than twice as expensive as online policies for travellers aged 60 and over.

"Travellers are routinely being told they need to pay hundreds of dollars more than they should, simply because of their age," Mr Jackson said.

"Others are being charged extra for pre-existing medical conditions that are relatively routine and should be covered for no additional cost."

Advice? Look online at sites for travel insurance to avoid paying hundreds of dollars extra for age-based premiums, according to a leading insurer.

7. Don't rely on your credit card company

TID claims that thousands of Australians are unnecessarily exposing themselves to enormous risks by relying on travel insurance offered through their credit card providers. Many basic policies cannot be activated without producing a copy of your credit card and do not cover any business or sporting activities, such as rafting.

TID also claims that it's not uncommon for insurance offered by credit card providers to only last three months, and once overseas, coverage cannot be extended.

If you are planning to rely on the travel insurance provided by your credit card, you should, before travelling, obtain written confirmation that you are covered and of what exactly the insurance covers.

8. Work out how the policy is calculated

"The cost of travel insurance is usually based on the type of cover requested, the age of the insured, the travel destination and the duration of stay," Ms Ferrari said.

It's important to figure out exactly what your package includes, and whether what's included is right for you. Always take time to purchase the right policy to suit your holiday - and if you're not sure, ask.

9. Be prepared for some action

Don't shy away from all those action sports and activities while you're away, just make sure you buy travel insurance before you leave.

For example, "if you decide to go skiing in Austria, it could be very expensive to get insurance once on the ground, rather than in your overall policy prior to departure," Ms Moy advises.

Check your policy cover before you go, and if you are going to participate in activities that aren't already covered (including skiing and many water sports), take out additional cover early to save you money.

10. Shop around

It's becoming a cliche, but shopping around for the best insurance policy can pay off. Look online, through travel agents, your credit card provider, and ask your friends what they've used in the past too.

"Although it can be overwhelming sifting through the numerous insurance providers out there, it's important to shop around to find the best policy to suit your specific needs," Nicole Moy, managing director, Contiki Holidays, said.

"A travel agent is a great place to start as they are already aware of what you need to suit your travel arrangements plus have access to a number of great deals."

Make sure the cover provided suits your needs and is valid for the whole time you will be away – and be sure to read the fine print as well.

Travel Insurance - Common Traps When Claiming on Misplaced or Stolen Baggage

by Jackson Taylor

Do you know what to do if something goes wrong on your holiday? Plan ahead, take travel insurance, and review the tips below so that you will be prepared.

Most of us will take out holiday insurance before going on vacation but do you know what to do when problems occur? Knowing upfront can save a lot of problems in the future. Review the following tips so that you can be ready.

Proof of ownership

Travel insurance companies will often refuse to pay for lost or stolen items unless that you can prove that they are yours. The best way is with the original receipt. Not everyone keeps all their receipts so this may not always be an option.

Now, travel insurance companies are not all evil and will cover you for most things like clothes, toiletries, and baggage but without proof of price you'll often only get a part of the true replacement cost.

It seems that these days everyone has a digital camera as they are so cheap. You should take a photograph of everthing you are packing. Get the brand and model where possible. Detail all this in a spreadsheet as well. Scan all receipts, manuals, warranty cards, or tags. You can claim when you get home but I’d recommend emailing all the photos, scans and spreadsheet to an online email account such as hotmail or gmail so you can claim while away if needed.

Replacement value

It has become common now for auto or home and contents insurance to offer new for old replacement. Travel insurance normall does not work like this. You'll typically be offered the price of your goods after depreciation. Usually you would be able to afford a second hand item with the amount offered. Some items hold their value really well and you actually won't be able to buy a replacement one for anywhere near the reimbursement the travel insurance company gives you. You should consider making a complaint with the company if this occurs. Provide proof of the true market value (e.g. from classifieds, second hand shops, or ebay). If the travel insurance company still refuses to cover the replacement cost then take it to the ombudsman.

Stolen luggage and police reports

Travel insurance companies will generally not just take your word for it when something is stolen. You will need to show them proof. Usually you can provide a police report but if it occured on an airplane or cruise ship then you'll need a statement from the company.

Police reports can be difficult to get in certain countries. A fee may be required for this service. If the amount is small then pay it to avoid any extra hassle. For larger amounts you may want to confirm if this is normal. Consult your guidebook or search the internet. If not then your embassy or consulate should be able to help. There may be tourist police who are best to approach in this matter.

If you cant speak the local language and the police can't understand you then you could try an online translation service (e.g. babelfish) or by finding a local or fellow traveller who speaks English and take them along (a tip is generally appreciated).

Unattended baggage

Typicall a travel insurance policy will not provide cover for when your luggage is left unattended. This may seem like it would never happen as you normally don't leave your bags in random places but unattended is usually described as being left in an unlocked place or with someone you don't know. Common scenarios are left luggage at hotels or hostels, with doormenFree Articles, or with tour companies.

ABOUT THE AUTHOR
Jackson Taylor works as a specialist for Travel Insurance Reviews. Jackson has travelled the world extensively and likes providing insight about all the things he has learnt while adventuring. Read of his latest reviews for Australian Travel Insurance - 1Cover Travel Insurance review.