How to Buy the Best Travel Insurance

I think you’ll agree with me when I say: Buying the BEST travel insurance can be a very confusing part of planning a trip to far-away lands.

In fact, whether you build your travel itinerary or just plan a backpacking trip from A to Z, it’s extremely difficult to think about things like buying travel insurance. Your mind is in a different place already!

In other words, when you book your flights, search for cheap accommodation and choose a travel credit card, it’s so easy to consider travel insurance as something useless, perceive it as a waste of money. Wrong!

Despite the common belief amongst certain groups around us, flight cancellations, family emergencies, sudden illnesses, and hiking accidents do occur from time to time and no one is immune to injuries.

If you’ve ever wondered “What type of travel insurance should I buy?”, “how travel insurance works?”, and “how to buy the best travel insurance?”, you’re in for a real treat.

Because today I’m going to pull back the curtain and show you exactly why travel insurance is important, which companies offer the best coverage and what type of travel insurance you need to cover your specific adventure.

Let’s dive right in!

What is Travel Insurance?

First things first, travel insurance provides financial protection if bad things happen. Travel insurance will generally cover unexpected medical emergencies, trip cancellations, stolen or damaged luggage by an airline, and many other related losses.

If something goes wrong and you’re covered by your travel insurance, your insurance provider will pay you back for any related money you have had to spend. Sometimes, it may pay the cost directly, for example to a health service provider.

It is important to have travel insurance if you are going abroad. But the decision about whether to buy travel insurance and how much travel insurance to buy to get is a personal one. It’s important to choose travel insurance based on your destination and possible risks to your health and stuff.

Read More: Budget Travel Guide to Backapacking China

Travel insurance is not a substitute for your health insurance in your home country. Whilst some travel insurance policies can cover accidents or sudden illnesses, the level of that cover depends on what plan and the provider you get. Sprain your ankle? Rupture of the appendix? Break a leg? Travel insurance has you covered. However, if you need to cover pre-existing conditions, normal checkups or pregnancy-related issues you’ll have to pay for it. Travel insurance is only designed for unexpected emergencies!

Why do You Need Travel Insurance?

I’m not going to pretend that you’ll need it 100% of cases. It really depends. But having it makes your entire trip look completely different. Makes you feel safe!

I’ve had to claim on my travel insurance five times over the last eight years of traveling. In Thailand, I had a sinus infection that had to be treated with antibiotics, which would have set me back $95. Multiple times I’ve suffered from flight delays, robberies, and digestive problems.

A great thing about travel insurance is that it will help cover all non-refundable things like plane tickets, rental cars, tours, hotels. You can also claim compensation if your bags get delayed or stolen. It can help if someone steals your expensive gadgets. It will help if your flights get canceled or you can’t go on your trip for some reason.

After three months of backpacking in Thailand, I thought it would be a good idea to save money and wait with extending another camera insurance. Boy, I was wrong! I was unlucky that just at that time I dropped my motorbike and had my $500 worthy camera lens broke! I learned my lesson and now I don’t travel anywhere without travel insurance.

How to Buy the Best Travel Insurance

I know I’ve mentioned it earlier, but choosing the right travel insurance can be pretty confusing. With so many travel insurance companies and options out there, it can be even more difficult to know what kind of cover you should go for and why. Given how important reducing risks when backpacking abroad, I want to cover the topic in depth. I have met many fellow travelers who have decided against travel insurance and ended up regretting it.

Travel insurance is something you definitely need to minimize the chances of losses. If you’re a savvy backpacker and traveling the world on a shoestring budget, then you will probably end up taking some risks. Using bad public transport and staying in cheap hostels that often don’t have lockers to store your stuff might involve additional risk. You need to protect yourself in these situations.

Before I left for my first backpacking trip I didn’t know much about comparing travel insurance. There are several price comparison sites to find good travel insurance. These websites are really useful if you want to have a detailed list of companies that offer the best deals and what they cover. Start your search with InsureMyTrip, SquareMouth or MoneySupermarket. Don’t choose a company on a whim. Check customer reviews on the web first before you choose the level of cover that best suits your needs.

Tips for Buying the Best Travel Insurance Policy

The first thing you should pay attention to is the coverage limit on medical expenses. The higher, the better, plain and simple. A good insurance company will offer anything from $50,000 to $100,000. Remember, the higher the coverage limit is, the more benefits for peace of mind you’ll get.

Since I already had several accidents I now opt for traveling with World Nomads as they offer coverage up to $100,000 on medical expenses and up to $500,000 on emergency evacuation depending on the destination. I consider them a reliable option that can cover me for nearly anything.

Think of what you would like to include. Are you an adventurous person and going to be doing dangerous things like extreme sports or parachute jumping? Are you going scuba diving or rock climbing? Make sure that you’re covered in case of accidents because many basic plans don’t offer such option and often you buy extra. Generally, you can buy travel insurance for a specific set of dates, but some providers, offer subscription models as well. The price can vary greatly depending on the type and extent of cover you want during your trip.

Along with your health, you can insure all your important valuables and expensive electronics. World Nomads cover almost $3000 of lost, stolen or damaged luggage, documents or gear with a maximum claim amount. In general, other companies usually offer around $500 worth of coverage on electronics.

The Best Travel Insurance Policies Will Usually Provide The Following:

1. 1. The insurance is valid worldwide;
   2. Cover injuries and sudden illnesses;
   3. Some coverage of electronics;
   4. It will offer worldwide support and 24-hour emergency services;
   5. Cover lost, damaged or stolen goods;
   6. Cover all non-refundable things like plane tickets, rental cars, tours, hotels;
   7. It won’t leave you alone in case of bankruptcy.

You can use the booking form below to get affordable travel insurance from World Nomads, at no extra cost to you. I will earn a small commission that I shall spend on admission to museums in far-flung destinations.

Important Considerations

Make sure that your insurance plan includes emergency evacuation and repatriation coverage. This is not only useful when you have an accident in remote and inaccessible places and have to be taken to the nearest appropriate health care facility, but also when you need medical treatment that is not available in the country you are currently exploring.

When it comes to long-term travel you need to be even more careful. Almost all insurance companies specify exactly the amount of time you can be outside your country of residence to be able to claim.

If you are a digital nomad or long-term traveler and haven’t been home for 12 months and need to make a claim on your insurance, you might not be able to do so. World Nomads offer their policyholders convenient options for covering you for 12 months and you don’t need to visit home in order to be covered.

Choosing good travel insurance doesn’t have to be confusing. The process doesn’t involve any travel agents, brokers, or other outside people. Therefore, there are no reasons why you should travel without insurance and risk being struck with unmanageable medical bills. Don’t save money on your health! It’s better to be safe than sorry!

Declaring Pre-Existing Conditions

Remember, almost any insurance company will refuse to pay your claim for medical treatment you receive as a result of a pre-existing condition. Ensure you declare any pre-existing medical conditions you may have or you won’t be covered in case of emergencies and hospital visits in relations to those conditions.

Failure to declare any pre-existing medical conditions may nullify the coverage. Be honest and vigilant in knowing the medical exclusions and conditions. Read the fine print first. You do not want to make a claim with a travel insurance company in expensive countries like the United States where just one doctor’s visit can cost you close to $250!

How to Make a Claim on your Travel Insurance Policy

If you need to make a claim, get all your documents in order as soon as possible. Once you have chosen an insurance provider, keep thorough documentation about your property, including an image inventory of your stuff, electronics, and other valuables. That can be a huge help in proving your losses in a claim.

Your insurance company likely will require a police report if you file a theft claim. In general, getting a police report tends to significantly speed up payment on your claim. In case of an accident, most insurance companies will require proper record keeping to prove the patient’s demand for medical expenses.

Documenting everything is a really good idea. Your insurance company will want to see that you actually owned the items in the first place before they pay out. Videotape or photograph your belongings. Especially expensive stuff. Take photos of serial numbers and barcodes, too. I use free cloud storage services to backup copies so they’re ready to send off if needed.

Australia Travel Guide

I know, taking photos of these can be tiresome. But trust me, if the time comes when you actually need that information on hand, you’ll sure be happy to have it.

Sometimes even the best travel insurers use delay tactics to avoid paying out on a claim in a timely matter. You need to be patient when it comes to actually getting paid. If the first offer that the travel insurer makes you is ludicrously low then dispute it. The second offer is usually a lot better.

Do you have any horror stories from traveling? I’d love to hear about them on my Facebook or Twitter pages and please feel free to share this post with any or all of the social media buttons! If you want to get more awesome backpacking tips, advice and inspiration, please subscribe to updates via email.