Travelers Insurance – The essential guide to the UK and worldwide
Travelers insurance is vitally important when you are embarking on an overseas trip. However, Travelers Insurance can also be quite expensive for travellers either going to the UK, or travelling from the UK to other countries. Further, there exists an amazing array of products offered by insurance companies, either direct or through travel agencies. All this makes it easy to ‘over-insure’ yourself and it can therefore pay to do a bit of homework before you jump on the plane.
At the end of the day, the amount of insurance you take out is a personal choice.
Hundreds of thousands of travelers from Australia, New Zealand, South Africa, UK and Canada require travel insurance each year. This guide is designed for travellers and working holiday makers so that you can quickly get a handle on the basics and begin making wise insurance decisions.
Caveat Emptor - buyer beware! Consider what you need to insure and read your policy carefully.
Know what you want to insure
Knowing what you want to insure, and to what level, is the hardest
decision. There is risk inherent in everything we do. However, there
is acceptable risk and unacceptable risk. For each thing you need
to insure (your health, your belongings, your airline tickets etc)
assess how much risk you are willing to accept.
We hope you agree that travel health insurance
should be your number one priority. There are also other
types of travel related insurance you should consider. Once
you’ve narrowed it down, you then need to purchase
the right insurance policies so that “if push comes to
shove” you’re taken care of.
Apart from investing in travelers insurance we also suggest some important travel tips.
- Travel Health Insurance UK
- Travelling direct to the UK from your home country
- Travelling worldwide
- Other types of travel related insurance
- Cancellation Insurance
- Baggage Insurance
- Single Trip Insurance, Multi trip Insurance and Backpacker Travel Insurance
- Purchasing the right insurance at the right price
- Important travel tips
Travel Health Insurance UK
Travelling direct to the UK from your home country
"Under the current Regulations, anyone who is taking up or resuming permanent residence in the UK is entitled to free National Health Service (NHS) hospital treatment in England. If your intention is to live permanently in the UK you will be exempt from hospital charges from the date of your arrival in the country but you should expect to be asked to prove your intention or residing in England and that you are legally entitled to live here"
Source: Department of Health – http://www.dh.gov.uk/Important:
If you are just visiting the UK and have been living outside of the UK for more than 3 months; even if you are a British citizen you may have to pay for hospital treatment whilst in the UK. Anyone who comes to the UK on holiday or for a short term visit will have to pay for any NHS hospital treatment. There are a few exemptions – Visit the Department of Health's Information Page for Visitors.
This is excellent news for many HOWEVER
- You may still wish to consider cancellation insurance or baggage insurance
- You will also not be covered for countries where you have stopovers, transfers or if your plane is diverted.
- Many people in the UK, and most other countries around the world, also take out "private UK health insurance"; not to be confused with "travel health insurance". Travel heath insurance really only covers you for emergencies in a travel situation.
- If you have taken up residence in the UK, your 'travel health insurance' may cease to cover you - be sure to read the fine print or ask someone!
Travelling worldwide - Global Travel Health Insurance
Major Considerations
What you are covered for
Good healthcare is expensive and in some countries may not even exist; this means that in the event of an emergency you may need to be flown home or to another country where you can get proper care. Accidents, Sickness, Disability and even Death do occur and there are many different insurance products that cover you for different situations.
Some of the benefits often available in travelers health insurance policies include:
- emergency hospital
- prescriptions
- daily living expenses while you are sick or injured
- medical transfers to other countries
- costs of flights for you loved ones to be with you
- private nursing
- X-Rays
- prescription drugs
- ambulance cover
Pre-existing Conditions
“Health Insurance” and “Travel Health Insurance” should not be confused. Generally travelers health insurance will not require a medical examination. Basically you fill out a simple form and you are accepted or not, usually on the spot. The policy will spell out what you are covered and NOT covered for. Because of the lack of a medical exam there will be restrictions based on any “pre-existing conditions”. If you were to make a claim, any pre-existing medical conditions you have that may have contributed will be scrutinized and your insurance may become worthless; if in doubt – ask and have a note attached to your policy to prove you have informed the insurance company of the condition.
Activities
You will be amazed at how many travelers insurance policies do not cover activities that may seem fairly standard. Ask yourself what activities you will be doing whilst travelling: climbing in Nepal, trekking in Thailand, scuba diving in Fiji, river kayaking in Eastern Europe (note: no insurance company we know of covers Pamplona bull runs or swimming with sharks in SA!) – be absolutely sure those activities are covered by your policy.
Often, a premium is charged to cover you for such ‘high-risk’ (as calculated by insurance company quantifiers) activities. ‘High-Risk’ does not necessarily mean ‘highly likely to happen’; insurance companies simply need to have adequate ‘money in the bank’ based on the relative cost to them if injury should occur.
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Other types of travel related insurance
Cancellation Insurance
You can be insured for the cost of your flights and accommodation if you become medically unfit to travel. There are often many restrictions to this insurance. For example, it will not cover you if you simply change your mind or if a “pre-existing” medical condition prevents you from travelling. It may however cover you for an unexpected death in the family so you can attend the funeral. Read the fine print and ask the insurance salesperson.
Baggage Insurance
You can be insured for expenses like a change of clothing if your baggage does not arrive with you. Like cancellation insurance there are many restrictions. The amount you are covered for and the circumstances of your loss often determine if a claim will be successful. Your valuables like jewellery, sunglasses or electronic items for example will probably not be covered – unless you add them to your policy specifically. Also, if you do not take ‘reasonable care’ in packing things your insurance will not cover you.
Single Trip Insurance, Annual Multi-trip Insurance and Backpacker Travel Insurance
If you are backpacking around the world for a year or you are already living in the UK and need insurance for a trip - many insurance companies offer products specifically tailored to your needs. These insurance products generally keep costs lower and automatically provide many of the things you need such as activities and baggage insurance at a reasonable price.
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Purchasing the right insurance at the right price
Insurance brokers, insurance agents and direct sellers are the three most likely ways to purchase travellers insurance. The old approach is to purchase travelers insurance through your travel agent who essentially acts as an insurance agent. At the time you purchase tickets for your flight you will most likely be offered insurance. You should always do your homework (i.e. assess your needs and read the fine print), however, if you are dealing with a reputable travel agent chances are the insurance product offered will be managed and underwritten by a quality insurance provider. While this is the easy option, it can be worth shopping around. In today’s online world there are many alternatives - usually offered by insurance brokers carrying a number of insurance products and direct sellers with products specifically aimed at working travellers and backpackers. While shopping for insurance online can be cost-effective and get you the best insurance for your needs – be diligent not only in who you are dealing with but who they are dealing with (i.e. the insurance underwriters).
Questions to ask:
- Are the companies that manage and underwrite the insurance reputable?
- What is the procedure if I need to make a claim?
- Which countries are included in the coverage?
- What activities are included? (What is NOT included?)
- Is coverage for baggage or cancellation included?
- What is the excess I need to pay if I make a claim?
- If I decide to travel for longer, can and how do I renew?
- What are the rules used to determine a "pre-existing condition"?
- If I am in a country that cannot provide adequate care, what happens?
TIP: Many Credit Cards offer travellers insurance and this can be an excellent way to save money and get the coverage you need in exchange for purchasing your flights and/or accommodation using that credit card. However, like any other insurance policy you need to be sure you are getting the coverage you need. Ensure you have coverage for activities, baggage, and cancellation.
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Important travel tips
Missing a flight, having your things stolen or accidents requiring medical attention are usually be avoided if you take some time to appreciate and consider the country, customs and differences of the places you are visiting.
TOP TIPS
- Photocopy your passport, credit cards, travelers insurance policy number and contact number and any other important documents you may have with you. Give a copy of this to your travel buddy and your mum before you leave home. You can also keep a copy yourself - but do not keep it with the actual documents!
- Get your Vaccinations, Immunisations and Prescriptions sorted out before you leave home - some planning here can save you a lot of money and trouble.
- Wear a money belt (if you know you will not wear your money belt - hide emergency cash and credit cards in a hidden, interior pocket).
- Get information from your embassy about the risks associated with your destination countries.
- Carry a small first-aid kit. There are many prepared first aid kits available at travel stores. (Hint: look at the contents of a commercially available first aid kit - then save money by visiting your chemist and making your own up)
- Do not drink tap water, do not have drinks with ice cubes and do not eat salads washed with the water unless you know it is safe or has been purified correctly (if in doubt do not eat it!).
- Eat food that is prepared hygienically. If a restaurant looks clean, busy and full of travellers then you are probably OK. In general, if it is cooked, peeled or packaged it will be OK.
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