When you are travelling there is a lot to organise, but what if you could simplify your next trip by not having to go through the hassles of taking out travel insurance? There are some cases and some conditions where you won’t need to worry with travel insurance for your trip and you can save yourself time and money so you can enjoy your holiday or get on with your business travel.
While there are some reasons why you won’t need to take out travel insurance, and some countries do have reciprocal arrangements with Australia to provide Australians limited free medical treatment, in most countries you won’t be covered for medical costs if you don’t have some form of insurance.
At the same time, following are five reasons you may choose not to take out travel insurance:
1 – You’re not taking a risky holiday
If you are accident prone or you are heading off on a thrill seeking adventure holiday where you plan to go rock climbing, bungee jumping and white water rafting then you may feel better about being a dare devil if you had some sort of medical coverage. Plus, even if you are planning an extreme holiday, many travel insurance policies don’t cover you if you are injured during certain hazardous activities or sports.
At the same time, everyone who travels and every holiday and trip which is planned is different and if you are planning a simple trip in which you won’t be engaging in any extreme activities then you may not need to take out travel insurance.
2 – You’re already covered
You may not need to take out travel insurance if you are already covered by other policies. Therefore, before you travel check whether your existing insurance policies or credit card benefits will protect you while you are away. For example, some health insurance policies include a level of coverage for when you travel abroad, or your home owner’s insurance or renter’s insurance policy can cover you for loss or theft of your possessions even if you’re not at home.
Plus, remember that in the case of a natural event or other disaster which causes your trip to be cancelled, travel providers are required to refund your ticket costs. Your credit card provider may also cover you with accidental death and dismemberment benefits if you pay for your trip using that card, and some cards will even cover you for rental car damage and lost luggage.
3 – Insurance cost vs travel cost
Before you buy travel insurance consider the size of the trip you are taking. For example if you’re planning a short interstate flight the value of travel insurance will be negligible on such a small holiday. However, if you’re planning your dream holiday around the world and you fall ill or have a family emergency and can’t go, then travel insurance can be of use.
Travel insurance is also more affordable the longer you buy it for, so insurance for that short interstate trip could actually cost you the same or more than insurance for a month long holiday. As a result you are getting little value from buying travel insurance for a short trip.
4 – You can’t always cancel your trip
Not all travel insurance policies will reimburse you for the cost of your trip if you cancel. For example, if you are experiencing delays from your travel provider and become too fed up to travel at all, a travel insurance company will usually only pay out if more than half of your planned trip has been delayed.
5 – Terms and conditions
There are also a number of terms and conditions which apply to travel insurance, so even when you buy insurance and you think you’re covered, you can find that there are conditions which void your cover. Therefore, don’t take out travel insurance if you expect to be covered for:
Medical care of your choice. Most travel insurance policies will only stabilise you in the case of a medical emergency and will then fly you to a physician or medical facility of their choice, not yours.
Turning your back. If you want to claim your stolen laptop on travel insurance, you may not be able to if it was stolen while you had your back turned. As a result you may only be covered for the less likely theft of your belongings while they were in your hand.
Pre-existing medical condition. If you have a pre-existing condition such as diabetes or a heart condition then any medical issues which arise because of this condition while you are away may not be covered by your travel insurance.
Family emergency. If you are away and there is a death in your family and so you want to cut your trip short, you will need to make sure you have the specific family emergency coverage to be reimbursed for the rest of your trip. In other cases your travel insurance won’t pay out if your relative suffered from a pre-existing condition.
Over 65 years old. If you are over 65 years old you will usually need specialist insurance when you travel as you won’t be covered by standard travel insurance.
Bad weather. If you travel to a tropical island or plan a Caribbean cruise, you can’t claim on your travel insurance if it rains every day of your holiday.
Changes to the itinerary. Travel insurance won’t pay out if you are inconvenienced by a change to the port or terminal your trip departs from.
Frequent Flyer tickets. If you purchase your airline tickets using Frequent Flyer rewards points the cost of these tickets is not covered by your travel insurance.
