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Oct 26, 2013, 12.36 PM IST | Source: Moneycontrol.com

Points to ponder on travel insurance for holiday

Holidays are expensive, which is why travel insurance is so essential. You may not expect things to go wrong while your kids build snowmen on the Alps or you soak in the sun on a virgin white sand beach.

Deepak Yohannan
MyInsuranceClub.com

Holidays are expensive, which is why travel insurance is so essential. You may not expect things to go wrong while your kids build snowmen on the Alps or you soak in the sun on a virgin white sand beach. But things do go wrong. Accidents, missed flights, cancellations, lost baggage, emergency evacuations, illness they can all occur when you least expect it. Travel insurance will not make the unexpected go away, but it will help you deal with the associated expenses.

What Coverage Do You Need?
The right kind of coverage can be a blessing when the unexpected happens while you are on holiday. Here are some common types of coverage that you should consider when buying a policy.

  • Medical Insurance Getting sick or sustaining an injury on an overseas trip can be a huge expense. Depending on where you are travelling, medical bills could be unaffordable. Insurance could help you pay the hospital bills or fly home, as needed.
  • Contents Insurance We all travel with our iPhones, fancy tablets and pricey cameras, and sometimes, with expensive jewellery as well. If any of these were to get lost, it would be a huge financial setback. Hence, contents insurance is a must!
  • Delay and Cancellation Every traveller worries about the costs of flight and tour delays and cancellations. A travel insurance policy that covers you against such possibilities is a great hedge against losing the money you spent on the travel bookings.
  • Airline and Tour Operator Insolvency Airlines and travel companies do go bust sometimes. An insurance policy that covers you for this will help you recover most of what you spent.
  • Sports Accidents General travel insurance plans may not cover you for sports like skiing or snowboarding, where the risk of accidents is high. So unless you are planning to do nothing more dangerous than building sandcastles on a beach, get coverage for possible sports injuries.
Types of Travel Insurance Plans:

Depending on how frequently you plan to travel, one of the following policies could be a better fit for your travel needs.

  • Multi-Trip Travel Insurance If you will be travelling extensively in the coming days, consider buying multi-trip insurance to cover them all. This should fall cheaper than buying single trip policies for each holiday. An annual cover could also prove helpful.
  • Single Trip Travel Insurance Occasional and infrequent travellers can benefit from buying single trip policies since their travel needs are lower.
Getting the Best Deals

Travel insurance plans are not always expensive. It all comes down to being smart about the policy you buy.

  • Shop Independently Your tour operator may offer travel insurance, but this is likely to be more expensive and provide less coverage than if you were to shop for insurance on your own.
  • Group Insurance Are you travelling with your family? Group insurance or even couple's insurance could lead to lower insurance costs.
  • Coverage Amount Not all travellers need all kinds of coverage. If you have a friend who will drive you around in his own car, you do not require car rental coverage.
  • Declare Medical Conditions This is essential to ensure that your insurer does not reject any claims you might file in the future.
So even as you plan your next holiday, remember to budget for a good travel insurance policy as well. Happy travelling!

The author is CEO of MyInsuranceClub.com and can be reach at deepak@myinsuranceclub.com

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