insurance
Types of Travel Insurance Policy
For many people travel insurance used to be one of those last minute emergency things that they did before they went on a trip, like checking their passport was still in date and making sure they had cancelled the milk.
Covid has changed all that, in ways that are likely to stay with us all for many years to come. The uncertainty that Covid created in the world order, has made travel insurance a key element of peoples freedom to resume travelling, and explore the regions of the world in a safe and secure manner.
Understanding how travel insurance works, its different elements and how it affects different types of traveller has become a really important part of the preparation for any travel trip, whether it be a week, a year or a new life altogether.
There are two or three main types of travel insurance, with numerous different add-ons, additions and different ways to make sure the insurance cover is appropriate for someone’s needs.
Backpacker / Longer Stay Insurance
Specialist Travel Insurance Holidays and Trips :
There are various other types of travel insurance policy available, either as stand alone policies or as additions to one of the above types.
These normally include things like cruise insurance, winter sports insurance, sports and activities insurance, notably golfing trips, overseas weddings insurance as well as travel insurance for people over a certain age, normally 65/75-85.
There are also policies available for people based in the UK who live abroad for a certain amount of the year, although these are more health insurance policies than travel insurance.
The main ones are listed below :
- Business Insurance
- Credit Card Travel Insurance
- Travel Insurance Comparison Sites
- Nurses
- Age Related Travel Insurance
- Travel Insurance for Cruises
- Backpackers
- Expats
- Children
- Working Abroad including TEFL
- Travel Insurance for Moter Cyclists
- Anyone with a disability
- Travel Insurance for people who are pregnant
- Students
- Golfing holidays
- Skiing
- Snowboarding
- Winter Sports
- Extreme Sports
What is Annual Travel Insurance?
Annual Travel Insurance, sometimes referred to also as multiple trip travel insurance, is an insurance policy designed to provide cover for several different trips throughout the year, both for an individual and their family as well.
The number of trips is normally unlimited, but there will be limits on the number of days per trip, usually between 30 and 90 days, and also possibly an overall aggregate limit of days throughout the year.
The level of flexibility for this type of policy will vary from insurance company to insurance company, and from policy to policy.
Insurance companies like to offer a range of different plans, with differing levels of benefits and payments, normally with a range of different excesses or deductibles as well.
An annual travel insurance policy is especially attractive to people who have retired or are in their later years, as this is an ideal time for many people to travel overseas, visit family or simply explore areas of the world they have always wanted to.
Insurance companies will usually offer this type of policy to people in their 70s and 80s, but often with different levels of cover, and sometimes restricted destinations.
The insurance company is also likely to be more restricted in terms of how it sees, medical conditions and other complications that may occur as a result of someone’s age.
Level of Cover
The main areas of insurance covered under an annual travel insurance policy will be broadly similar to those offered under a single trip policy but with added benefits and a range of potential extras that are likely to be more attractive on a longer number of trips. Below is a summary of the main types of cover normally offered :
- Cancellation of trip
- Delay or missed departure
- Abandonment of trip whilst overseas
- Emergency medical treatment abroad
- Medical evacuation – need to be returned home
- Some financial benefits for time spent in hospital
- Delay or loss of baggage
- Loss or damage to valuables or gadgets
- Some type of personal accident insurance
The usual caveat about claims regarding cancellation or missed departure applies. There are so many reasons that this can happen that insurers can take what is seen as very punitive to potential claims.
It is worth checking the policy very carefully to see exactly what time limits and event limits are covered, and which ones are not.
Some of these may be in the control of the individual or their family, and some may not be.
The insurance company may also require that people try and seek redress from other parties in the first place, such as a tour operator, train company, airport or airline or credit card.
An annual travel insurance policy is crucial for anyone planning several overseas trips for themselves and/or their family.
National governments provide a lot of advice about travelling safely, and also strongly recommend taking out a travel insurance policy.
These are two examples from the UK and the Australian Government that specify the basic principles of what a travel insurance policy should cover, and why it is really necessary to have one.