Traveling? Right, let’s get sleek suitcases, fluffy neck pillows for plane rides, and stylish walking shoes, are all in the name of travel. But when it comes to one all-important purchase—travel insurance—everyone just tries to get away with doing the least research possible. (It’s hard, I know!)
Travel insurance might not sound like the world’s most exciting purchase, but it plays a huge role in keeping you safe on your trip, not just from catastrophes but also from little annoyances that can ruin the enjoyment of your holiday.
So pay attention and consider these 5 things before you buy travel insurance on your next vacation.
Price isn’t the only important thing to look out for when selecting a policy
Many people approach buying travel insurance like they would bargaining for T-shirts at Ladies’ Market—the cheaper, the better.
But price should not be the only thing that helps you decide what policy to buy, especially as some of the cheapest policies are cheap for a reason—they offer less protection in key areas.
Take into consideration other factors, such as what areas you receive coverage in and how efficient the insurer is at processing claims. It’s not a good idea to buy a policy from an insurer that takes years to process claims.
Buy your travel insurance the moment you’re booked your flight tickets
Unbeknownst to many, when you buy travel insurance, you’re not just protected during your holiday, but also in the period leading up to it while you are at home in Hong Kong.
You might be able to get compensated if your trip gets cancelled or delayed, or if you can’t travel due to an emergency such as an illness or a death in the family.
So getting your travel insurance early—preferably once you buy your tickets—enables you to get more bang for your buck. Do note, however, that some insurers will only allow you to buy travel insurance a maximum of, say, 30 days before your trip.
Consider an annual plan if you’re a frequent traveler
At first glance, annual travel insurance plans look a lot more expensive than single-trip plans. But as they cover you for an entire year, they can actually work out to be cheaper if you’re a frequent traveler who’ll make any excuse to get out of Hong Kong.
As a general rule of thumb, if you make more than three overseas trips a year, you’re a good candidate for an annual travel insurance plan. Whether you’re just heading up to the mainland or traveling further afield to more exotic lands, an annual plan can save you money.
Check whether you’re being covered for emergency medical evacuation
Sure, we know you certainly don’t think it’s likely you’ll get into an accident so bad you’ll need to be rushed to the hospital in an ambulance or helicopter.
But the cost of an emergency medical evacuation can be so monumental—amounting to a shocking hundred of thousands of dollars—that you absolutely want to be sure your travel insurance covers it, just in case.
You are better off comparing travel insurance plans online
Unless you consider the dinosaurs your contemporaries, you should be able to buy travel insurance online without the need to interact with other human beings.
Comparing travel insurance policies online is easy. Look at the premium prices and the extent of coverage of the various plans, and then pick one that suits your needs and budget.
Don’t assume your credit card offers enough coverage
Many credit cards offer some form of travel insurance as a perk for using the card to book your trip. However, the coverage provided by credit card companies is often limited and may not be enough to cover certain situations, such as medical emergencies or trip cancellations.
Before you rely solely on your credit card’s coverage, make sure to read the fine print and understand what is and isn’t covered. It may be worth purchasing additional travel insurance to ensure you’re fully protected during your trip.
Additional coverage needed?
One final thing to consider before purchasing travel insurance is whether or not you need additional coverage for any specific activities you plan on doing while on your trip. For example, if you plan on skiing or snowboarding, you may need to purchase additional coverage for winter sports. Similarly, if you plan on participating in adventure activities such as bungee jumping or skydiving, you may need additional coverage for these activities as well. Make sure to read the policy carefully to ensure that all of your planned activities are covered.
Understand the exclusions
Travel insurance policies often have exclusions for certain types of events or activities. For example, many policies won’t cover injuries sustained while participating in extreme sports or activities.
Make sure you understand the exclusions in your policy and how they could affect your coverage. If you plan on participating in any activities that are excluded from your policy, you may need to purchase additional coverage.
Consider the type of trip you’re taking
Different types of trips may require different types of travel insurance coverage. For example, if you’re taking a cruise, you may need coverage for medical emergencies that occur on board the ship. If you’re traveling internationally, you may need coverage for emergency medical evacuation.
Consider the type of trip you’re taking and the activities you’ll be participating in when choosing a travel insurance policy. Make sure the policy you choose provides coverage for the specific needs of your trip.
Beware of the deductible and the coverage limit
When choosing a travel insurance policy, it’s important to consider the deductible and the coverage limit. The deductible is the amount you have to pay out of pocket before your insurance coverage kicks in. The coverage limit is the maximum amount your insurance company will pay out for a claim.
Make sure you choose a policy with a deductible and coverage limit that you can afford. You don’t want to be stuck with a high deductible or a low coverage limit if something goes wrong on your trip.
Read reviews and ratings of insurance providers
The reputation of the insurer is an important factor to consider when purchasing travel insurance. Look for an insurer with a good reputation for customer service and claims handling.
Before purchasing travel insurance, it’s a good idea to read reviews and ratings of insurance providers. Look for reviews from other travelers who have used the same insurance provider and see what their experiences were like.
This can help you choose an insurance provider that has a good reputation and provides high-quality coverage. It can also help you avoid insurance providers that have a history of poor customer service or denying claims.
Consider the duration of your trip
The duration of your trip can also affect your travel insurance policy. If you’re planning a long trip, such as a backpacking trip or a round-the-world adventure, you may need a policy that covers you for a longer period of time.
Make sure you choose a policy that covers the entire duration of your trip, including any pre-trip or post-trip activities.
Check if pre-existing medical conditions are covered
If you have a pre-existing medical condition, make sure you check if it’s covered under your travel insurance policy. Some policies may exclude coverage for pre-existing conditions or may require you to pay an additional premium for coverage.
Make sure you disclose any pre-existing conditions to your insurer before purchasing a policy to avoid any surprises later on.
Check if your policy covers natural disasters
Natural disasters, such as hurricanes, earthquakes, and floods, can disrupt travel plans and cause significant financial losses.
Make sure you check if your travel insurance policy covers natural disasters and what is and isn’t covered. Some policies may only provide coverage for certain types of natural disasters or may exclude coverage altogether.
Understand the claims process
Before purchasing a travel insurance policy, make sure you understand the claims process.
Find out how to file a claim, what documentation you’ll need to provide, and how long it will take for your claim to be processed. Knowing the claims process in advance can help you avoid any delays or misunderstandings later on.
In conclusion, always read the policy thoroughly before purchasing
As with any insurance policy, it is important to read the policy carefully before purchasing travel insurance. Make sure you understand what is and isn’t covered, as well as any exclusions or limitations. If you have any questions, don’t hesitate to ask the insurer before making a decision. Remember, travel insurance is not just an added expense, it is an investment in your safety and peace of mind while on vacation.
Frequently asked questions: Travel insurance
Is price the only factor to consider when selecting a travel insurance policy?
No, price should not be the only factor that helps you decide what policy to buy. Other factors to consider include what areas you receive coverage in and how efficient the insurer is at processing claims
Do I need to buy travel insurance if my credit card offers coverage as a perk?
It depends on the coverage provided by your credit card company. The coverage may be limited and may not be enough to cover certain situations, such as medical emergencies or trip cancellations. Make sure to read the fine print and understand what is and isn’t covered before relying solely on your credit card’s coverage.
How can I make sure I’m fully protected during my trip?
Read the policy thoroughly before purchasing travel insurance and make sure you understand what is and isn’t covered, as well as any exclusions or limitations. If you have any questions, don’t hesitate to ask the insurer before making a decision.
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To know more about the travel insurance, check out the Hong Kong travel insurance comparison. Plus, don’t forget to check out the Cathay Pacific Miles new policy!
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