These days, with the increased awareness pertaining to the benefits and security provided by a travel insurance policy, travellers seem to avail the same without giving it a miss. That said, many of us tend to struggle in determining the right or the best travel insurance cover.
At large, travellers tend to buy a travel policy online, preferably via a comparison or an aggregator website. While this is definitely a good idea as it helps you compare the features and premium offered by various insurance companies, it is not without its share of pitfalls. The problem that has emerged with the comparison websites is that due to the cut throat competition, insurance companies are compelled to lower the premiums at the cost of reduced coverage. For instance, it is seen that the upper limit for baggage loss is getting lower to counter the competition of offering an international travel policy at reduced premium. Another trend that is observed is with respect to the excess, the amount that needs to be shelled out by you during a claim settlement. Companies are seen increasing the excess to the point where the claim settlement figure becomes negligible.
Considering the above, it has become necessary that you shouldn’t blindly rely on the insurance aggregators. Choosing a policy based on your needs and prudent analysis is the need of the day. Thus, let us find out how to choose the right travel insurance policy
The first step is to always identify your requirements. It will ensure that you won’t be paying for something that you don’t need. This has to be decided on primarily two factors, the destination and the nature of your trip. For instance, if you are visiting the US or Canada, you need to purchase a policy that offers comprehensive travel medical insurance. This is because the medical treatment costs are very high in these countries.
Secondly, you need to understand the pre-defined limits for coverage. Many people wrongly presume that the sum insured is the only limiting factor to claim settlements. For example, if the sum insured is of 5 lacs, the default baggage cover can only be up to 1 lac. If you are carrying luggage that is worth a lot more than that, you need to opt for increased baggage cover.
Generally speaking, travel policy covers your pre-existing medical conditions. In order to ensure smooth claims, it is advisable to check the policy wordings in detail for coverage and exclusions. Also, it is essential that you intimate the insurer about the pre-existing medical condition beforehand.
Another factor to consider is the purpose of your trip. If you are planning an adventure trip that would involve outdoor sports such as bungee jumping, skiing or skydiving, it is important that you avail coverage for these activities. Generally, adventure sports are not covered in a normal travel plan due to the high-risk factor associated with them. Thus, you need to avail coverage against such activities as an add-on to the basic travel plan.
The bottom line in choosing a right travel insurance policy is to strike a right balance between the premium and coverage. In addition to the above pointers, you can also use an online travel insurance premium calculator to help you for the same.