Travel Insurance: the easy guide

Travel insurance. Boring huh? It is ... until you need it. Then you probably wish you'd paid closer attention to the detail.

Are all the parts of a policy the same?

This was a question we got asked recently and the simple answer is no, they aren't. While actual policy benefits vary considerably between companies, there are several types of cover within most policies.

Medical emergencies & evacuation

From being squashed by an oversized Sumo in Japan to falling from the Rodeo in Texas, if there is one reason to buy travel insurance, this is it.
Hospital costs in the USA can approach $10,000 per day, while medical evacuations to Australia can easily exceed $100,000. The cost of a travel insurance policy suddenly seems like small change, and is infinitely better than having to re-mortgage your house to bring loved ones home.

Unlimited cover if you're travelling to the US, Canada or Japan.
Cover for Emergency evacuation.
An allowance for a relative to accompany you if you're ill or injured and travelling alone.
Cover for emergency dental work.
Cover for pre-existing medical conditions or pregnancy.

Regardless of who you buy a policy with, definitely take your time to read the policy wording carefully, particularly the exclusions, and if you have any questions, ask.

Cancellation

This section of a policy covers you for cancellation costs if you suddenly find you can't go on your trip for some unforeseen reason such as the serious illness of a close relative. The important thing to remember here is that for this section of the policy to be useful, you have to buy the policy when you start booking tickets and not the week before you leave.

Loss of non-refundable deposits and costs paid in advance if you cancel before departure due to illness or injury, compulsory jury duty, unforeseen retrenchment and natural disaster.
Cancellation in the event of a terrorist event. Most travel insurance companies won't provide cancellation cover in the event you decide not to go due to a terrorist incident. It is worth asking this specifically and checking the policy wording in detail for these specific exclusions.

Baggage

Baggage is the reason most people take out travel insurance and is actually probably the least important component; things can be replaced, health can't. There are usually per item limits and exclusions regarding the definition of ‘reasonable care' which means a claim will be denied if you leave your baggage unattended in a public place and it's stolen. Lastly, should you have to claim, you will usually be asked for proof of ownership in some form, so you might like to consider this before you go.

individual item limits
If your luggage is stolen from your hotel room.
If luggage is stolen from the boot of a locked car
Does it cover loss of cash

Personal liability

If you cause an accident when abroad and injure someone, insurance can cover your liability and legal expenses but most won't pay legal expenses if you have a car accident.

Rental cars

When you hire a car overseas, if you have an accident there is usually a policy excess that you have to pay to the car hire company. Travel insurance can cover the costs of this.

Delays

Flight delays aren't uncommon, but very occasionally delays can run into days which can quickly become expensive. The conditions and benefits vary considerably between policies so always read the policy wording carefully.

Resumption of journey

Most travel insurance policies end the minute you arrive home, so if you have bought a policy for 3 months and come home after 2 weeks, you probably aren't entitled to a refund on the 'unused' portion.

However, some policies allow for special circumstances where if you had to return home because of a sick relative or a death in the family, then not only will you be able to claim for some of these costs, but you can also resume your journey. Again, the conditions and benefits vary considerably between policies so always read the policy wording carefully.

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Customer Reviews

I have used Travel Insurance Direct several times now when travelling overseas. The last time we travelled with another family who the airline lost their baggage. They contacted Travel Insurance Direct and found them most helpful and assisted them. All of us were greatful for their assistance which may the holiday further stress free.

David | 4/09/2010

Travel insurance is something you take out and hope never to use, indeed dred the thought/act of using it at all... So when I was on an island resort off the sth east coast of Malaysia and was awoken at 1.30am by a stinging, biting sensation on my neck, which turned out to be a giant centipede 11cm long.... Well I was in shock, it continued to hurt/sting like hell for an hour or more and my wife, who was also scared/confused found various websites which contained conflicting info. It was Mary who suggested we call your travel insurance hotline and it was around 3am Malay time.

My experience goes as follows:

* we were put straight through to a nurse who listened, and asked questions in a methodical, calm and understanding way.
* His immediate advice to stay calm as there was a good chance any immediate danger period had passed. He asked what my strongest pain killer was and that it was ok to take 2. He asked if we had any antihistimine(?) Which we did so it was wise to take that and continue for around 48 hrs.
* He found the insect/scoundrel on a Uni Queensland website and proceeded to provide calming expectations of what I would be feeling over the next hrs, day and couple of days etc. He was absolutely spot-on.
* He asked about my last Tetinus shot of which I couldn't remember and he advised to get a shot in the next 48 hrs. I went that day to the mainland and had a shot.
* Finally, he said someone would call me later that day amd wished me well.
* to my surprise, someone actually called back exactly when they said they would. I was exhausted by this stage and they couldn't offer further assistance and I was by now still sore, tired swolen but mending well under competent advice.
* I was then followed up several days later and I was ok by then. Shaken not stirred.

To say I was impressed with the high standard of service would be an gross understatement. For starters my holiday and that for my wife and 3 children was saved by your nurse's swift, calm and accurate advice. We continued on and had a wonderful holiday creating further memories etc.

Your follow up weeks later is 'icing on the cake' as to the service you and your team provide. Though this did not lead to a claim, so I can't speak to that process, nonetheless I am happy to provide your services the highest recommendation.

Peter Dobson | 1/09/2010

So easy to get a quote and after much research went with TID for the price and coverage. Have used them 3 times now and have made 2 claims, reimbursed quickly and with no hassle.

Missa | 23/08/2010

TID is a travel company where I actually felt I was being looked after!!

Michael Cousins | 17/08/2010

Compared travel insurances and found Travel Insurance Direct to be the easiest and most comprehensive. I have now purchased it several times for our holiday insurance needs. Recommended and used by family members.
Would recommend this company to any travellers.

Martine | 5/08/2010

Had a great experience getting a quote with TID. Given that i was in early pregnancy (which was extremely healthy) i was being given the run-around and being asked to pay rediculous amounts to cover myself or not cover myself really at all. TID was a great option and the price was unbeatable!

katie | 20/07/2010

I have used TID many times and although I've not had to make a claim, I would still recommend it to anyone.

Emma | 12/07/2010

Good Morning

I am 63 years of age and wishing to travel to Cairo
I take blood pressure and cholesterol tables for precaution only, no pre medical conditions

Can you please advise if I can be covered for 2 months from 11 July to 11 Sept 2010

Thank you David

David Southern | 2/07/2010

We first started using Travel Insurance Direct a number of years ago because of the easy to use website and price. Two years ago my partner became ill and was hospitalised in Bali. Thanks to our policy and helpful staff we were guided thru the application process. I was very pleased with the speed of the service and very happy with the level of coverage. I have recommended TID to all of our friends based on easy to use, price , service and level of cover.

Mick | 15/06/2010

I know choosing a travel insurance company was a big question for me before going to South America, so I wanted to share a positive review of World Nomads for anyone going through the same process.

Basically, some property of mine was stolen on the street in Argentina at the beginning of my trip. I filed a police report, sent the receipts, and made a claim with World Nomads and within two weeks of receiving the documents had the $500 limit for the items transferred into my bank account. It was a really easy process, efficient, and while I didn't recover the total value of the losses, something is better than nothing. Cheers to having something positive to say about an insurance company for once!

Thorn Tree | 3/05/2010

TID was recommended by a friend that travels a lot. We were offered a rate by the travel agent, when booking our tickets, that was over 3 times the cost of TID. I went to their easy to use site, called their very helpful, efficient and polite service center, checked the easy to understand policy, extremely carefully, and decided that this company is well worth buying insurance from.

Macdesign | 12/04/2010

Not a bad word to say about Travel Insurance Direct. The cover is outstanding, the price is cheap and the level of service is top notch!

On a recent trip to Europe (my first overseas experience) my Fiancee was struck down with shingles in Paris. At the time though we were unaware it was only shingles and after finding an english speaking hospital, whilst they thought it was Shingles initially, also said it could have been a lung clot so done all the relevant testing to rule it out so that we could have a relatively worry free end to our trip. Travel Insurance Direct were nothing but supportive when we called them to let them know of our misfortune and called regularly to check on my Fiancee and when it came to paying out claim, they were prompt and hassle free. It will take an extremely bad future experience with Travel Insurance Direct for me to consider going with anyone else.

Matthew Flanagan | 30/03/2010

World Nomads insurance has been great for us. We have been travelling for 19 months now through the Americas and have updated our insurance online twice in that time with no problems. The price is good and we had one claim (dental) that was processed with no problems. We would definitely use them again.

Carol & Kent - Kiwis | 30/03/2010

I can't believe no one has anything bad to say about this company. The wording seems like its all written by the same person. something fishy going on here!

Editor: we leave you to decide the authenticity of these reviews, but with over 600 reviews it'd have to be a pretty dedicated person to write them all on his own.

bob | 23/03/2010

In November 2009, my father was admitted to hospital in Israel I contacted TID and the service received was outstanding. The care and compassion was second to none and contact was made with my Auntie in Israel to discuss the situation. It was handled so professionally that I have no hesitation in recommending TID to others who wish to travel. We have used TID for the last few years and wouldn't consider anything else.

bcalder | 10/02/2010