A Review On Travel Insurance: Do You Need It Or Not?
Thebestindonesia.com – It is essential not to have travel insurance, especially abroad. Some people sometimes make the mistake of thinking that their local insurance covers all losses and that they will be in for a big shock when they claim the insurance. Plus, having the right policies takes all the worries out of your trip.
Travel agents should always provide insurance when arranging travel. If not, please ask, as we are responsible for any issues. Cheap policy or not?
Once travel insurance is established, multiple allocations, such as premiums, brokerage fees, administrative costs, etc., are partly applied to profits and the rest to the actual claims. So we know that more than cheap travel insurance is needed. You can be sure it’s in the compensation amount.
If you buy regular travel insurance, i.e., fill out the form and send it to the insurance company with your referrer, it will cost you a lot. A better option is a wholesale policy (sold by travel agents) which significantly reduces administrative costs. That means more money is spent on actual compensation. Some tour operators and agencies offer ‘in-house’ travel insurance. This often covers only their cancellation fees and little else. It can be cheaper, but we can only provide a little travel insurance.
Another way to cut costs, depending on how much you travel, is to purchase annual travel insurance. This bulk purchase can be much cheaper than a one-time travel policy.
What is the primary or secondary travel insurance coverage?
These two types of coverage determine how payments are made. Primary travel insurance coverage means the company “pays first.” Paid to the claimant. Secondary travel insurance coverage means paying only after claiming other coverage where possible. So we can see that primary coverage is much better than secondary coverage.
Read also : A Guide to Buying and Using Travel Insurance
What kind of compensation do you need?
The two most significant risks covered by most travel insurance are the costs of changing travel plans and the medical and emergency assistance you need while you’re away.
Most travel insurance policies include hundreds of dollars for baggage/lost/damaged/delayed, missing travel documents, and other small amounts for flight delays or disruptions. Some will arrange for someone to fly to you if you need to stay in the hospital for more than a few days.
Another primary cost driver, which I admit I hadn’t considered before, could be supplier bankruptcy. Travel insurance providers often cannot provide insurance to cover their default. This is another good reason to have an independent policy from the company that arranges the trip.
Most travel insurance policies include a large amount of flight death coverage, but surprisingly, it’s a minimal value of about 25 cents for $100,000 of coverage. This shows how safe air travel can be.
Some travel insurance covers the risks of renting a car. Car rental insurance is costly, so this is an important consideration.
Trip Cancellation/Change Coverage
Costs associated with ticket changes to understand the expenses you may incur if you need to change your itinerary or cancel your trip if you purchase unlimited first-class tickets are usually included in the purchase price and may not occur.
It may seem strange, but the cheapest tickets have the highest risk of cancellation/change. Changing a cheap fare and returning home on another flight may cost you more than the original ticket purchase price.
If your travel insurance says “full travel expenses,” you may think it covers the total amount, but be aware that this may not always be the case. Suppose the discounted fare is $590, and you have an $895 package and need to transfer. The round trip is more expensive than the whole package. You may have to pay an additional $1120 to get home with a non-prepaid round-trip ticket.
Read also : A Short Guide To Travel Insurance
I had this experience a few years ago when I was rushing home for my father’s funeral. Due to time constraints, I had to purchase non-discounted tickets. I was sick all day and had an ear infection when I arrived at the airport. So with all the vomiting and varying air pressure that comes with flying, I couldn’t get on the plane. However, I had trouble rebooking my flight for the following day as I had purchased the total amount. This shows that you can only sometimes control the situation.
More restrictive travel insurance may exclude situations considered “under your own control, ” including work-related issues. , say you have a problem to resolve and are told to postpone your retirement. This type of travel insurance is very likely not paid for this.
Medical and emergency assistance
Some people mistakenly believe that their home health insurance covers all costs, no matter where they are. You may find that she doesn’t protect you, the deductible is much higher, or that medical expenses are covered but not the associated transportation costs.
During your cruise, you may need medical attention from the ship’s doctor. Their services may be paid like other doctors, and you may need to go home on a stretcher. That means blocking nine seats. Can you imagine how much it costs? Make sure you have travel insurance of at least $10,000 or more to cover these emergencies. Imagine that you are in a remote location, have broken your leg, and need to be lifted by helicopter. This is what good travel insurance is all about.
Summarize
Imagine the worst possible travel accident scenario and decide if you need travel insurance. This could be the cancellation of the entire trip with associated cancellation costs or an emergency medical disaster requiring medical and local care. If you can’t afford to take out, spending about $100 on travel insurance can give you peace of mind that you don’t have to worry.
Happy travel!
