HOW TO BUY GOOD TRAVEL INSURANCE
Travel insurance is much more than just medical protection – it covers you when your camera breaks, your flight is cancelled, a family member dies and you have to come home, or if something is stolen. It is the single most important thing you should get but hope to never have to use. And for the little money it costs a day, you’re foolish not to get it. Travel insurance is something you absolutely need on the road. You never know what could happen.
Because of the myriad types of plans and companies out there, travel insurance is one of the most complex and confusing aspects of trip planning. Travel insurance is accident insurance. It is there to protect you in case of emergency.
The kind of insurance depends on a lot of factors. You’ll have to ask yourself a few questions. Are you a short-term traveler going away for a few weeks/months? Or are you a long-term traveler leaving for a year or more?
Do you carry a lot of very expensive gear, or not? Do you have pre-existing conditions? Are you the type of person who books hotels/flights/activities in advance? Or do you just wing it and pay for services as you use them? If you never book flights more than a few days in advance, then trip cancellation insurance may not be necessary.
What to look for in a great plan
There are a lot of options out there, and, often, in the fine print, you’ll find that plans aren’t as good as you thought. They should cover most countries in the world.
1. Travel Health Insurance is coverage for accidents, injuries, and hospital visits while you are away from home. Most health plans don’t cover you overseas. Travel medical insurance covers your medical expenses for injury, sudden accident and sudden illnesses and 24-hour emergency services but not preexisting diseases, routine health care like check-ups or regularly prescribed medications (like insulin). For example, if you have a heart condition and develop a problem on the road, you will likely not be covered. The medical portion of travel insurance is more about emergency care than being a replacement for your normal health care.
Make sure they have a high coverage limit – good companies provide at least $100,000, and many plans have a maximum of $one million. Hospital bills can be very expensive especially in the United States (travel insurance for the US will be more expensive than other countries).
2. Medical Evacuation Insurance is coverage for transporting you to a major hospital for treatment. This means evacuation from a natural disaster, to a hospital, or from the hospital back to your home country. Some evacuation insurance may cover emergencies, strife or civil war in the country visited, etc., that cause you to head home early.
3. Baggage/Property Insurance is coverage for theft or damage to your gear while traveling. It covers lost, damaged or stolen possessions like jewelry, baggage, documents, cameras, and your electronics (most companies only cover a small amount, usually up to $500 USD as part of their basic coverage for electronics. You can often buy supplemental insurance to get a higher amount of coverage. Clements Insurance offers special coverage for your electronics with prices varying depending on the country you visit (between $145-195 per plan) but they don’t have worldwide coverage. You have to get coverage for your specific country. Moreover, many regular and home insurance companies such as State Farm offer plans that can help you cover your electronics.)
4. Trip Cancellation Insurance is coverage for unexpected interruptions in your travel plans. It covers cancellations such as hotel bookings, flight, and other transportation bookings if you have a sudden illness, death in the family, or some other emergency. Have financial protection if any company you are using goes bankrupt and you are stuck in another country.
5. Legal Expenses. Some plans may cover any legal expenses that may be incurred.
6. Coverage for Countries with Travel Advisories
Traveling in countries with travel advisories can invaludate Nowhere do some of the issues of exclusion clauses come into play more than in Africa.
The Canadian Government issues four categories of travel advisory. What follows are the categories as applied to this trip from Morocco to South Africa.
1. Avoid all travel: Mali, and the Democratic Republic of Congo.
2. Avoid non-essential travel: Mauritania, Nigeria, Republic of Congo.
3. High Degree of Caution (some with regional exceptions where it is safer): Senegal, Guinea, Sierra Leone, Liberia, Cote d’Ivoire, Togo, Ghana, Benin, Gabon, Cameroon and Angola.
4. No restrictions: Morocco, Namibia, South Africa.
The government of the UK has different classifications and different warnings.
No travel insurance company covers acts of terrorism, war or political upheaval in addition to all the usual multitude of exclusions. Basically all insurance covers normal illness and accidents.
Oasis Overland has an affiliation with Campbell Irvine Insurance of the UK that offers travel insurance for these countries. Several clients on this trip purchased this insurance. It was at least twice the price of the insurance I had. But many others didn’t as the sales pitch for their policies stated they covered every country when in fact they didn’t. Not many people go to Mauritania, Mali or all these dodgy places.
It certainly was not clear that it was mandatory to have insurance for every country we pass through. Without it, it appeared that continuing on the trip would not have been possible. We all came to understand this about two weeks into the trip as we approached Mauritania. Nine clients purchased a supplemental policy through Campbell Irvine then over the phone via Oasis. The average cost was 83£.
Personally, I started the trip with two policies. One is a 31-day, multiple trip policy that I used for the first 31 days. I hadn’t bothered reading it closely, but exclusion #23 cited any country with a travel advisory. The category of advisory was not stated. As a result, I would not have been covered until December 11.
My second policy (TuGo offered through the BCAA) however covered them all and I was able to top up the policy to the beginning of December for a small fee, before we were to enter Mauritania. TuGo covers diving.
Travel insurance, especially since 9/11, has become increasingly expensive. At age 60, prices climb appreciably until they are almost unaffordable by 70. For Canadians, it is also almost impossible to buy travel insurance if you are not a member of your provincial health plan. I never purchase trip cancellation insurance. Most of my flights are not booked long before and exclusions often prevent payouts anyway. I avoid extreme adventure activities and don’t purchase insurance for my electronics.
What isn’t covered is just as important as what is.
Most policies do not cover accidents sustained while participating in extreme adventure activities such as hang gliding, paragliding, diving or bungee jumping unless you pay extra. The majority of companies won’t cover you if you injure someone on the road (called third-party liability). Policies do not normally cover alcohol- or drug-related incidents, or carelessness in handling your possessions and baggage. You won’t get reimbursed if the problem happened because you were reckless, and how “reckless” is defined is a matter up to each company. Simply put, if a reasonable person wouldn’t partake in what caused your accident, you won’t be covered.
Travel advisories (see above) may invalidate insurance.
Making a claim
If you make a claim, remember that any travel insurance company, no matter how good, is there to make money and will try to avoid paying out as much as they can. Good medical insurance will not require the bills to be paid by the claimant. In order to ensure that you do get paid your claim, make sure you have all your receipts, necessary forms, and proper documentation like police reports (Keep the story simple. The longer & more in-depth the report, the easier it will be for the insurance company to find a loophole that they can use to deny your claim!).
Insurance Providers.
Shop around before you make your final purchase. All plans are different and you want one to suit the type of trip you are taking. For example, if you don’t participate in high-risk activities, avoid expensive plans that cover those. Or if your credit card has trip cancellation insurance on purchases made with the card, or you don’t book your tickets months ahead but just before you need them, you do not need trip cancellation insurance.
Here are a few of the top travel, medical, and personal property insurance providers with a short description of what they do & do not cover. These are definitely not the only insurance options out there though.
There are many available plans that are more specific for your country. For example, for Canadians: surehealth.ca, bcaa.com, skymed.com,
Example quotes were obtained using these details: 30 year old single male with no pre-existing conditions. This list is very American-centric.
IMG Global – This plan specializes in long-term worldwide medical coverage, but does not cover theft or trip cancelation. Coverage inside the United States is included, but to qualify you must spend at least 6 months of the year living abroad. You can choose a deductible from $250-$10,000. Dave from GoBackpacking.com, Mathew Karsten from Expertvagabond.com and the Vogel’s from FamilyOnBikes.com are happy customers.
Health Coverage Worldwide: Yes.
Coverage at Home: Yes.
Medical Evacuation: Yes.
Trip Cancelation: No.
Theft/Damage Insurance: No.
Example Quote: Global Gold (1 year policy) = $74/month with $1000 deductible
World Nomads – They specialize in short-term travel coverage, including theft, and are very popular. They are very reputable, and claims are quickly and fairly processed. Buying insurance with them is quick & easy and done online, so you can extend coverage online from anywhere. They have a very friendly and responsive staff who answer questions and help solve problems via social media, have great customer feedback, and most importantly, they provide a lot of coverage at a good price. They do not cover anyone over age 59 as they do not have a medical questionnaire. They do not fully cover expensive items like DSLR cameras & computers.
Matt from NomadicMatt.com, Ayngelina from BaconIsMagic.ca, Gareth from Tourist2Townie.com, and Gary from Everything-Everywhere.com are happy customers.
Health Coverage Worldwide: Yes.
Coverage at Home: No.
Medical Evacuation: Yes.
Trip Cancellation: Yes.
Theft/Damage Insurance: Yes. ($500 per-item limit)
Example Quote: Basic Plan (6 month policy) = $49/month
Clements Global Care – They specialize in medical insurance for professionals moving abroad. You must use a foreign address to qualify for coverage. Deductible ranges from $250-$5000. Akila from TheRoadForks.com is a happy customer.
Health Coverage Worldwide: Yes.
Coverage at Home: Yes.
Medical Evacuation: Yes.
Trip Cancelation: No.
Theft/Damage Insurance: No.
Example Quote: Global Basic (1 year policy) = $83/month with $1000 deductible.
Clements Property – Along with medical Clements also offers property insurance for theft/damage of gear. Both scheduled (receipts) and unscheduled. It seems to be geared for working professionals moving abroad, not full-time travelers. But some travel bloggers use it. Dave from GoBackpacking.com, Jodi from LegalNomads.com, Mathew Karsten from Expertvagabond.com and Akila from TheRoadForks.com are happy customers.
Health Coverage Worldwide: No.
Medical Evacuation: No.
Trip Cancelation: No.
Theft/Damage Insurance: Yes.
Example Quote: Plan 1 (1 year policy) = $19/month for $7500 worth of gear.
HTH Worldwide – Full international medical insurance, including the United States. No limits as to how long you are in the US. Deductible waived for regular doctor checkups. Excellent insurance, but pricey. Sherry from OttsWorld.com is a happy customer.
Health Coverage Worldwide: Yes.
Coverage at Home: Yes.
Medical Evacuation: Yes.
Trip Cancelation: No.
Theft/Damage Insurance: No.
Example Quote: Global Citizen (1 year policy) = $269/month with $1000 deductible
AMEX Travel – Multiple-trip travel insurance that covers you for up to 60 days in each location. Baggage coverage has a maximum of $2500, so it might not cover expensive electronics if everything is stolen. For US & Canadian residents only. Plan details differ depending on your country of residence. Dave & Deb from ThePlanetD.com are happy customers.
Health Coverage Worldwide: Yes.
Coverage at Home: No.
Medical Evacuation: Yes.
Trip Cancelation: Yes.
Theft/Damage Insurance: Yes.
Example Quote: Annual Coverage (1 year policy) = $50/month
State Farm Personal Article – I know many photographers who purchase this policy to cover their expensive gear from damage/theft. It’s cheap and covers a lot. But your claim will be denied if they investigate & find you make ANY money with your gear. Must be purchased in home state, but coverage is worldwide.
Health Coverage Worldwide: No.
Medical Evacuation: No.
Trip Cancelation: No.
Theft/Damage Insurance: Yes.
Example Quote: Personal Article (1 year policy) = $10/month for $5000 worth of gear.
State Farm Business – This policy will cover all your gear from damage/theft if you use it to make any sort of living. Also covers general liability up to $1m, a nice perk. Must be purchased in home state, but coverage is worldwide.
Health Coverage Worldwide: No.
Medical Evacuation: No.
Trip Cancelation: No.
Theft/Damage Insurance: Yes.
Example Quote: Business Property (1 year policy) = $41/month for $12,000 worth of gear.
Special Types of Travel Insurance
Dive insurance: diversalertnetwork.org DAN
More Insurance Options
• If you already have health insurance in your home country, check to see if they provide you with coverage internationally too.
• Credit card companies often include some type of travel/theft insurance for their members.
• If you own a home, your homeowner’s insurance may cover your gear while traveling abroad.
• If you have apartment rental insurance, it may cover your gear as well.
Some long-term travelers draft a contract with their parents for “renting” a room in their home for $5 a month, which they use to buy cheap renter’s insurance from State Farm that covers personal property. Crafty!
• Insuremytrip.com compares policies from a number of providers and a wide range of policies at once functioning like a global insurance search site. They have a high age limit as not enough companies cover seniors!
Travel Insurance Tips
• Read the fine print first! Know what you’re covered for. For example, some policies don’t cover extreme sports or theft of unattended items.
• Take photos of all your gear with a date stamp.
• Save PDF copies of all gear purchase & hospital receipts. Keep originals too.
• Write down serial numbers, policy numbers, and insurance contact information.
• Store this information online in a secure, easy to access place. I use Evernote. Another good option is Dropbox or Google Drive.
File a police report immediately after any theft or accident.
But no matter who you choose, there’s a 99.99% chance you will never need to use the policy you bought. But accidents happen and life on the road is uncertain. It’s better to be safe than sorry, especially when you are in a different country, thousands of miles from home.
Medical Insurance for Expatriates
www.insurance-expatfocus.com
