Make Sure You’re Not Slapped with the Bill From a Slip Up

Make Sure You’re Not Slapped with the Bill From a Holiday Slip-Up

As Kiwis, we all know how to protect ourselves with slip, slop, slap when the sun comes out but are we as good at making sure we’re covered financially when we’re abroad?

For a small population, Kiwis certainly know how to travel big! In 2016 we made 2.62 million visits overseas and in January 2017 alone, nearly 166,000 of us packed our bags and took off on a foreign trip. For many travellers, it goes exactly as planned. No major issues, bags arrived when they do and they got back home in one piece. But, unfortunately for some people, mishaps, accidents or illness can take the shine off their trip.

Canstar’s general manager, Jose George explains:

“Booking a trip overseas can be expensive and travel insurance can feel like an additional extra to sort out later but it’s important to keep it front of mind. The sooner you buy it, the earlier you are covered and that could mean that if you are unfortunate enough to fall ill or have an accident before you even go, you could get some or all of your money back.

“Some of the popular destinations for Kiwis can be very expensive if things go wrong. In Australia Kiwis are covered for emergency care but even the ambulance to get you to the hospital will cost you extra. In the USA, a broken limb can cost tens of thousands of dollars even for the most straight forward cases. That’s not the kind of holiday souvenir many of us either want or can afford.”

What you should consider when buying travel insurance

In 2016 our favourite destinations were Australia (1,176,140 trips), USA (197,000 trips) and China (101,180 trips). Trips were a combination of long, short, business or pleasure, and travellers ranged from singles to couples or families and senior travellers. Cruise holidays are also increasing in popularity, but obviously pose different risks to those travelling by plane, train and automobile. With so many variations, it will come as no surprise that there’s no ‘one size fits all’ when it comes to travel insurance, so to make sure you get the best value cover for you, here are a few things to consider:

• Have you worked out what you need? This may sound obvious but if you are planning to take part in activities such as skiing, mountain climbing or any other strenuous activity, you may need to take out additional cover to make sure you and your gear are covered. Also check if you plan to ride a moped or motorcycle. A lot of policies only give cover for accidents involving bikes up to a certain engine size, sometimes as small as 125cc.

• Did you buy travel insurance when you booked your trip? People tend to think travel insurance is only for the trip itself but if you take it out as soon as you book your trip, it may help you if you have to cancel at short notice due to unforseen illness, accident or even close family illness.

• Pregnant? Check you’re covered. Conditions vary between providers but some policies will exclude cover from as early as 20 weeks.

• Do you have any pre-existing conditions? This is usually considered to be any illness or injury for which you have received treatment for within the last three years (or are awaiting treatment). Tell your insurer and they can exclude it from your cover. Don’t tell them and you could put your whole policy in jeopardy.

• Do you know your limits? As with all insurance policies, there on limits on cover. If you have an expensive item such as a piece of jewellery, watch or even a wedding dress, seek advice as to whether you should buy additional cover.

What can you expect to pay?

Your age, number of people insured, destination and your plans once you get there all have an impact on what you can expect to pay. To give a rough idea, using data we’ve collected from 31 providers (across 43 products), we’ve illustrated typical customers heading to our most popular destinations of Australia, China and the USA.

George goes on to say:

“Don’t be tempted to be economical with your disclosure in order to keep your premium down. If you have a pre-existing medical condition or you are planning on taking part in a more risky activity such as scuba diving or mountain biking, declare it. It could bump up the price of your premium but it’ll mean you’re covered in the event of a claim.

“Premium levels and the policies themselves can vary hugely so it’s worth hoping online and checking out comparison sites to see where you can get the deal that gives you the best value.”

The top rated providers

This year, Canstar's annual travel insurance analysis considered 43 policies from 31 providers to determine which ones offer outstanding value for money. To reflect the different types of trips and travellers and policies available, Outstanding Value Awards were awarded across four distinct categories:

As with all insurance, it is important to check the policy details with the provider before purchasing to make sure they are suitable for an individual’s needs.

For further information please visit the Canstar website.

ENDS

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