- Insider Tip: Be Aware of Pandemic Coverage in Travel Insurance Policies
Essential information on acquiring travel insurance for your journeys
Navigating through travel insurance can be tricky, particularly when it comes to pandemic coverage. Here are some key points to keep in mind when picking a policy to ensure you're adequately protected:
- Coverage Exclusions: Standard travel insurance policies often exclude coverage related to epidemics or pandemics. Always make sure your policy explicitly covers illness or disruptions caused by pandemics like COVID-19.
- Trip Cancellation and Interruption: If you need to cancel or interrupt your trip due to a pandemic, the coverage usually applies only if the policy includes specific language addressing epidemics or if the cancellation is due to governmental orders such as quarantine or mandatory evacuation.
- Pre-existing Conditions: Medical coverage related to pre-existing conditions or illness may be limited or excluded, so ensure that pandemic-related illness falls under covered medical conditions or consider purchasing additional riders.
- Time of Purchase: Insurers often issue travel insurance alerts for events like pandemics. Make sure you buy your travel insurance before the alert to avoid exclusions for pandemic-related claims.
- Credit Card Travel Insurance Limitations: Coverage for pandemics or illness outbreaks from credit card travel insurance is typically limited or unavailable. Opt for a standalone travel insurance policy for comprehensive coverage.
Remember, the right travel insurance policy can save you thousands in unexpected medical costs, trip cancellations, or interruptions. Make sure you understand the policy's coverage for pandemics to safeguard your travel plans during these unprecedented times.
Policy Pitfalls and Gotchas
1. Country-Specific Coverage
Insurers sometimes apply policies to regions rather than having a policy for each destination. Be sure to understand the differences between Asia Pacific, Asia, Europe, and worldwide policies, particularly concerning coverage limitations for countries in each region.
2. Length of Travel
Annual multi-trip or credit card policies may restrict the length of each trip you take, so double-check this before you embark on your travels.
3. Activities Coverage
Make sure you understand what activities your policy covers. Cruising the open road on a moped? Carving up the ski slopes? Partying at a wedding? You'll need to add coverage for these activities, and they may not be cheap. Take it easy on the grog – if your alcohol or drug intake causes an issue, it won't be covered by your policy.
4. Valuable Item Coverage
If you're traveling with valuables like a digital SLR camera, expensive tablet, or laptop, check the coverage limits. Higher cover for valuable items will likely mean a higher premium. Consider adding this coverage to your home insurance policy instead, but verify the policy covers you worldwide and not just in Australia.
5. Understanding Exclusions
Before buying travel insurance, it's essential to understand the policy's general exclusions. These events aren't covered by any section of the policy and can include road accidents, riots, civil commotions, and pre-existing medical conditions. Kids, don't skim-read the fine print! Thoroughly read the product disclosure statement to understand what's included (and not included) in your travel insurance policy.
Gotchas to Avoid
- Terrorism Exclusions: Most insurers cover medical expenses but rarely cover cancellation expenses in the event of terrorism.
- Pre-existing Condition Restrictions: Most travel insurance policies will exclude cover for hospitalisation, medication, or missed travel caused by a mental health condition, whether that's depression, anxiety, or a psychotic episode.
- Age and Medical Limitations: Travel insurance plans often have age limits, and older travelers may face higher premiums and higher excesses. Some policies may also impose medical assessments or restrictions for specific conditions.
- Unforeseen Circumstances: Insurers refer to cover for 'unforeseen circumstances,' meaning something that wasn't publicized when you bought the policy. Be cautious when traveling to a destination that has a 'Do not travel' warning, as most standard policies won't cover you for these destinations, including for COVID-19.
Misconceptions Debunked
- Myth 1: "Unlimited" medical cover means that insurers will pay unlimited amounts for medical treatment. In reality, "unlimited" medical cover typically means high coverage costs but does not mean endless financial support. Be prepared to pay for any costs above the insurer's coverage limit.
- Myth 2: "I can cancel my travel insurance after purchase and still get a full refund." Travel insurance policies may offer cooling-off periods, but most insurers do not provide full refunds after these periods. Read the policy terms carefully before purchasing and consider adding trip cancellation insurance for added peace of mind.
Premium Savers
- Buy Early: Purchase your travel insurance as soon as you know your travel dates. The further out from your departure date, the more you're likely to pay, but the coverage starts immediately.
- Online Discounts: Many insurers offer online discounts. Compare policies and insurers to find the best deal.
- Member Discounts: Check if your existing health, car, or home insurance provider also offers travel insurance. Some companies give 10-15% discounts to existing members.
- Compare and Shop Around: Shop around, negotiate, and haggle with insurance providers. The more you compare, the better deals you'll find.
Insider Quote of the Day
Essential Travel Insurance Takeaways
- Understand the specific coverage details, including pandemic coverage, activities, and valuable items.
- Know the restrictions, such as the length of travel and country-specific coverage, to avoid any unforeseen surprises or gaps in coverage.
- Compare policies, understand general exclusions, and negotiate terms to get the best deal possible.
- Add trip cancellation insurance for added peace of mind.
- Read the product disclosure statement (PDS) thoroughly and understand what's included (and not included) in your travel insurance policy.
- When choosing a financial services policy, recognize the significance of health insurance coverage, especially for pandemic-related incidents, to ensure that you are adequately protected during your travels.
- Be mindful of the terms and conditions related to travel insurance, such as Country-Specific Coverage, Length of Travel, Activities Coverage, Valuable Item Coverage, and Understanding Exclusions, to make an informed decision that caters to your lifestyle and travel needs.
- To maximize consumer rights and minimize potential financial burdens, be aware of policy pitfalls and gotchas, like Terrorism Exclusions, Pre-existing Condition Restrictions, Age and Medical Limitations, and Unforeseen Circumstances, to avoid any unpleasant surprises during your journey.
