Comprehensive Travel Insurance Policies – What is Covered?
Travelling is an exciting, but an uncertain time. You aren’t quite sure what you’ll find when you get to your destination – there is only so much a dictionary and a guidebook can prepare you for. One of the most valuable ways that travellers have to help quell that feeling of uncertainty is by taking out a travel insurance policy. If you’re taking an extended trip overseas, making many stops, or have other unusual facets of your trip including driving and working, then comprehensive insurance is the safest route you can take. We look at what is covered under most comprehensive travel insurance policies, and what is not.
You should firstly be aware that not all travel insurers call their highest level cover a ‘comprehensive travel insurance’ policy. There is no policy out there that covers everything! Marketing and branding has led many to define their own terms, and you may find reference to policies named ‘Extra’, ‘Excel Plus’, or ‘Executive’, among others. The comprehensive policies are usually distinguishable by the higher levels of cover, and additional events covered.
The following events are ones that are commonly covered by all types of travel insurance, including comprehensive policies.
- Cancellation and curtailment: Having to involuntarily cancel or curtail your trip
- Emergency medical expenses
- Personal liability
- Missed departure / connection: Due to public transport failure or other factors beyond your control
- Personal baggage
- Personal money
You’ll generally also find benefits for health-event related expense, such as: accidental death or permanent disability benefits, and hospital out-of-pocket expenses in comprehensive policies. Some crime related events are covered by comprehensive travel insurance policies – although be aware that wide-scale events are often not covered by insurance. Check the section below for common exclusions to travel insurance policies. Comprehensive policies often cover hijacking, mugging, natural disasters and search/rescue expenses. Good policies will also cover you for some occurrences that could be seen to be your fault, including motor vehicle accidents..
Due to the nature of insurance, there are some events that even the best comprehensive travel insurance companies cannot cover. Fear of terrorism, or the collapse of an airline company, are usually not covered by your insurance. Additionally, if you are seen to be engaging in risky behaviour, you will likely not be covered for any adverse effects of that. For example, if you have an accident whilst under the influence of drugs or alcohol , travel insurance generally doesn’t cover that. Leaving your valuables or luggage unattended is another common claim excluded, when they are in a public place or a hire car. If you cancel your plans because of personal circumstances (such as a change in your financial situation, even if it is beyond your control), comprehensive travel insurance cannot cover that.
Comprehensive travel insurance is an excellent travel tool, and a great way to help you feel comfortable enough to fully relax overseas. In some destinations, and for some types of travelers, it is a must. It does have its limitations though – make sure you familiarize yourself with them to avoid disappointment.
