Visit Europe!

“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.

Do you have the necessary travel insurance that will safe guard both you and your loved ones if the unthinkable happens? Before you categorically answer yes, is it one that has been FSA approved not one that has simply been tacked onto your package holiday offering limited superficial perks?

Most assume travel insurance is to cover you against loss of your sunglasses and at the worst theft; realistically speaking they are the least of your worries which is why so many choose to not to take insurance out as they rationalise, ‘hey I’ll just buy new ones’! A more realistic approach needs to be taken when it comes to your travel insurance, such an essential item should cover you across the board, from accidental damage to accidental breakage of one’s body parts! All it takes is a slip, fall and before you know it you are being ‘siren-screeched’ down to the nearest hospital under the assumption that every country has a blessed NHS-style health policy to cover the costs.

On arrival at the hospital in agonising pain the last thing you’ll be expecting is some pushy nurse thrusting a clip-board with reams of paper attached, each requesting a signature proving you have the funds to pay for treatment before they take you through to see the doctors to fix your ankle which is now the size of a balloon! Surely this is not the way you anticipated your holiday going, closing your eyes you have a flashback of the holiday salesperson explaining the numerous benefits of travel insurance, how most standalone providers will give you a massive £1million pounds of health cover when in Europe and £2 million for the rest of the world. You recall her mentioning something about theft and loss and it was at that point hat you switched off, tuning her out as she told you how beneficial the funds would be in the event of an emergency.

It was only when she moved on to talking about the cheaper bolt-on option which could be attached to your package holiday that your ears pricked up. It seems once an expensive standalone product is offered people switch off, you offer them a cheaper alternative and they’re all ears again! Not paying any attention to the differences and only hearing the similarities, like the cover of a lost wallet or a broken pair of sunglasses. Rather than paying attention to the cover’s shortcomings and failings you signed on the dotted line, proud of yourself for taking out travel insurance at all! No longer patting yourself on the back your mind is racing as you are forced to ponder on your options, do you really want to compromise on your health by getting the cheapest type of product on offer, which will usually mean leaving the hospital again, your foot now the size of a football and travelling to the free clinic which has a full day’s waiting time regardless of the severity of your symptoms!

Unfortunately this has been the reality for a whopping “10 million Britons who travelled abroad last year”, who were mistakenly thought they had sufficient travel insurance only to realise that the cover they had taken out alongside their flights and accommodation did not adequately cover them for “medical expenses” which can cost tens of thousands for a simple broken bone and up to hundreds of thousands if you require immediate complex surgery. Don’t forget the pricey administrative costs that are associated with hospital treatment and yes you do have to pay for the ambulance ride to the hospital as well!

The tour operators supposedly offering this ‘cheaper’ alternative on closer inspection have been cited by customers as being over priced, for the cover they are offering in comparison to their supposedly expensive standalone is significantly inferior. Knowing that “about a third of travel insurance sold” in the UK “is bundled in with holiday packages usually by flight companies and tour operators” causes concern for the individual insurance companies as they are taking advantage of a huge section of the market which invariably casts a shadow over all travel insurance providers regardless of their credibility and reliability.

If you’re going on holiday this year then there may be a temptation to skimp on cheap travel insurance in a bid to cut corners and save money. With the worsening economic situation, it is understandable that travellers want to make cutbacks and not shell out on unnecessary extras.

Cheap travel insurance is one thing you cannot afford to skimp on however, especially with as many as one in three Brits claiming on their travel insurance after going on holiday. If you are prepared to shop around then there are some excellent deals to be found and quality cover on the cheap. Travel insurance is needed on most holidays abroad, but for these three holidays it is absolutely essential:

Prague, Czech Republic

Tourism to Eastern Europe has been growing in popularity steadily for a while now but the Czech Republic has probably got more of a boost in tourism than other surrounding countries. The capital Prague offers some stunning gothic architecture at the Prague castle which includes the St Vitus Cathedral.

Unfortunately, the darker side of Prague is notorious for petty crime, particularly pick-pocketing. Cheap travel insurance is an essential for a holiday in the Czech Republic but in Prague in particular, in case your wallet is stolen. Holidaymakers are also advised to take travellers’ cheques with them instead of large sums of money.

Colorado, USA

If you’re worried about the depreciating value of the pound against the euro but can’t give up on the adrenaline rush of skiing, then Colorado is about as good as it gets. Your cheap travel insurance is well warranted here though, as is a crash helmet.

The Crested Butte resort was voted one of the most dangerous mountains in the US, and with extreme runs such as Body Bag it’s not difficult to see why. For extreme winter sports like skiing and snowboarding cheap travel insurance is a pre-requisite.

Bangkok, Thailand

Thailand is the back-packers country of choice and for those travellers on a budget provides an excellent snapshot of Asia. Bangkok is an unusual blend of simple elegance and awe-inspiring extravagance. The Grand Palace is about as opulent a marvel as you will ever see but it’s set against a backdrop of vendors selling succulent street food.

Thailand also dominates the travel insurance claims in the UK: from illness, to injury, to missing luggage or traffic accidents. Bangkok itself is responsible for some of the most numerous and varied travel claims on the planet, making cheap travel insurance a necessity for travellers visiting the Thai capital.