Visit Europe!

Going back to Roman times, risks have been shared during times of tragedy and unforeseen circumstances, such as earthquakes, floods and the like. The first formal and recorded insurance company, Lloyds of London, was formed in 1769 and their founding principal remains intact today – to gather the premiums of clients as a pool of resources in order to return to clients who experience unexpected and unforeseen but covered events. So, that is the secret really, plan for the unexpected and unforeseen and make sure you are covered, especially when you are travelling. Whether your trip is a quick one or a round the world cruise, there are many good reasons for travel insurance. Here are just 7 things you should do before you buy your travel insurance:
Whatever you do, please explore the market and educate yourself with all the terms and terminologies of the travel insurance cover that will help you to avail the best travel insurance.
Certainly check what is included in your travel insurance policy but most importantly, check what is EXCLUDED from your travel insurance policy.
Research the area you are going to. What is the weather likely to be like? Is there any danger of hurricanes or tropical storms? Floods? How about Mosquito borne disease? What is the crime rate like? Whatever the perceived dangers your research uncovers then make sure that your travel insurance covers you for that eventuality. It is no good after the event to find out that you are not covered for rabid dog attacks (because there are so many in that particular area).
Discuss Your Existing Medical Conditions and Requirements – You need to carefully assess your likely medical requirements and make sure that these are declared to the travel insurance company.
If you intend to drive make sure that you are adequately covered. Many hire companies charge astronomic excesses in case of an accident. Make sure that you insured for that excess (and it will be a lot cheaper than paying the hire company’s rates for that same cover).
Make sure you have the necessary documentation for travel in that country. Take Spain for example which is part of the European community and will offer free health care say to a UK citizen on holiday or living there. There are certain conditions, one of which is that you must have a UK E111 form, if you don’t have that, you will not be treated. You must also go to a national health hospital, which are not in abundance in certain areas of Spain.
If travelling in Europe, it may pay to get a EHIC (European Health Insurance Card) as this will remove a lot of worry should you need any emergency treatment.
Okay, so there you have it. 7 things to do before buying travel insurance for the next trip you make. The other alternative of course is to not take out travel insurance, or to stay at home. Now, there’s an idea. But seriously, as always when taking out insurance, especially travel insurance, read the fine print first. Importantly, find out before you go what is excluded, not just included. So, always read the fine print. For example, accidental coverage is not provided in case of drunken driving, driving under the influence of narcotic substances etc. Exclusions are also provided for accidents during risky sports like bungee jumping, car racing, (insert for your favourite potentially dangerous sport here), scuba diving, white water rafting, flying (except as passenger in regular airliners), gliding, skiing, bike racing, diving, mountaineering, windsurfing etc. The list goes on. That means in case of accidents in these situations the insurance company is not liable to pay any amount to the insured.

Most people can’t wait to finish working so they can go on that much dreamed about holiday, however, it’s going to cost them when they get there. The majority of travel insurance policies are unavailable for people over the age of 65 as a result of the increased chance of them making a claim while abroad, therefore if they want to take out cover for their holiday they will find that they will have to pay over the odds for their travel insurance.

Insurance companies who refuse to offer cover for older travellers are simply not prepared to put themselves in the inevitable, in most cases, position of having to pay out large sums of money in the event of an individual becoming ill or injured while abroad, thereby requiring their medical expenses to be covered by their insurer. According to Age Concern, a charity dedicated to working with older people, there has been a 36% increase in the number of over-65s taking holidays abroad over the past five years, and yet 92% of holiday insurance policies are not open to this age group. Though it is an understandable stance to take when holidaymakers aged 65 and over are three times more likely to make a claim on their insurance, more often than not for medical expenses, than someone who is 30 years younger. Therefore, from the point of view of an insurance company, this factor makes covering older travellers uneconomical.

According to the Association of British Insurers, the expenses incurred for covering medical claims made by the over-65s are nearly three-and-a-half times higher than for people who are under 50. For this reason, the cost for cover differentiates between what the young and old pay; a couple under 65 taking out annual European cover with Direct Travel Insurance would pay £46, while a couple over 65 can expect to pay £160 for the same level of cover. Despite the fact that those who only travel as far as Europe are covered by the European Health Insurance Card (EHIC), this will only provide up to a certain level of cover, essentially offering the same treatment that is available to locals and therefore being quite useless if the treatment you needed required you to be transported back to the UK before it could be carried out.

People over 75 are highly unlikely to be able to obtain cover of any type, and if they wanted to, they would be looking at paying between £94.10 for two weeks’ cover for the US from Marks & Spencer and £274.14 for two weeks’ worldwide cover from Insureforall. In most cases, annual travel insurance only offers the optimum deal if the individual plans to make regular trips abroad. A suitable option for a single person aged 70 is Bradford & Bingley’s annual worldwide policy, which costs £133.94, and £148.82 including baggage cover. These prices are available for travellers aged up to the grand old age of 79. However, it is worth remembering that these quotes are made on the assumption that the traveller is in good health with no ongoing problems. The price will be dearer if the customer is suffering from ongoing medical conditions, but cover is available. Specialist insurers, in this instance, include All Clear, Free Spirit, Marrs and Medicover.

If you’re going on holiday this year then getting solid travel insurance isn’t just a good idea, it’s essential. Medical bills abroad can be extremely costly and it’s simply not worth taking the risk. You needn’t break the bank though, provided you’re prepared to compare travel insurance quotes and shop around a bit to find the best deal. Here are some points to consider:

Annual cover

If you’re overwhelmed each time you look online to compare travel insurance and find the process irritating and repetitive, it can be easier to get annual cover and then not worry about travelling for a whole 12 months. Especially if you’re going to take three or more trips abroad in a year, annual cover is definitely the way to go, as you can often save yourself money as well as time.

Ski trip extras

If winter sports are your thing, make sure that your travel insurance covers you specifically for skiing and snowboarding. A normal travel insurance policy will not be sufficient on the slopes and will not be valid for a claim if you injure yourself. It’s worth taking the time to compare travel insurance quotes from sports specialists who deal specifically in winter holidays for the best prices.

Excess charges

When you compare travel insurance you need to have a look at how much excess you will have to pay should you get injured, require medicines, lose your luggage or have your money stolen. Some insurance companies charge as much as £200 for excesses, which is fine for a large medical bill but not so good if you lost your£60 handbag. Excess charges can be as low as £30, which can make a big difference to your claims.

Cover limits

Not only do you need to check the excess limit, your cover limit is essential when you compare travel insurance. No policy worth its salt will have a cover limit of less than £1 million. This should be the absolute minimum, but you can get much higher limits. Again, particularly if you are skiing, a much higher cover limit is recommended, between £3 million and £5 million should be fine.

Don’t rely on EHIC

You need to find a comprehensive travel insurance cover for your travels abroad. Whilst the European Health Insurance Card (EHIC) can help reduce the costs of medical treatments in Europe, the only way to make sure you are going to get adequate medical treatment abroad is to compare travel insurance and get a decent policy.

“Travel insurance did not save my life, but it did save me more than $4,000.” States Garry Marr of the Financial Post.

“Few people plan to get sick, but when I was hospitalized this past spring with an illness, I was set at ease by a decision I made after a chance conversation with an editor a few weeks before.My family and I were planning a major trip to visit my wife’s family in Europe. You can imagine the cost: Four people, four plane tickets and let me just say, kids do not fly free or get a discount these days.

“Throw in train tickets and hotel rooms that were all prepaid. Why prepay a hotel room? Ever try to book a room in Paris? It is 175 euro a night for the cockroach inn, so saving a little cash by prepaying seemed like a reasonable idea. All in all, this was one of those trips you only make every few years because of the cost. Not going would be bad enough, but losing all the cash could be devastating.”

Marr has life insurance, car insurance and home insurance. However not travel insurance. Travel agents always offer that up at the end when booking a trip, much the way they sell extended warranties at those big-box electronics shops. I don’t buy either, with the exception of extended warranties on breakable children’s toys.

When TD Meloche Monnex were enquired in regard to their Wide Horizons Solution plan, it was reported that for a little more than $100, a policy that included $5,000 for trip cancellation and extended out-of-country medical coverage for the family was on offer.

TD has been selling travel insurance for about 15 years, according to Henry Blumenthal, vice-president and chief underwriter with TD Meloche Monnex. It is offered as an add-on to customers who already have auto insurance or home insurance.

“The main reason you would buy a travel insurance policy is for medical expenses,” says Mr. Blumenthal.

Some people may think they are covered through their workplace policy, but they should read the fine print. Exclusions can include such things as pre-existing conditions.

Mr. Blumenthal’s plan does provide coverage for preexisting conditions if your condition is stable. He suggests checking first with TD Meloche Monnex to see if your particular situation is covered before you take the trip.

The main competition for companies like TD Meloche Monnex offering travel insurance, which you can buy after you book your trip, comes from policies offered by travel agents at the time of sale.

“Why would you want to take five minutes at the end of planning your trip to negotiate your insurance,” Mr. Blumenthal asks.

“[Travel agent policies] are not all bad but you have to look at the price.”

The basic rate for his company’s policy is $110 for the whole year and covers any trip under 60 days as often as you travel, while a competing travel agent offered their travel insurance cover for about $75 per person for the one trip.

So how is it so much cheaper?

“We are a group insurer and we can offer a better rate. These are our own customers [so the risk is lower],” says Mr. Blumenthal, who adds people should shop around.

‘The purchase of travel insurance was a wise one. I had to cancel my trip due to my illness.’ Warns Marr.