An annual travel insurance policy sounds good at first. You pay a fee once and all travel over the next twelve months is insured. This may be true in most cases, but if you look at your policy more closely you may find you are not covered for misfortune as completely as you might think.
Because people travel for a wide range of activities and reasons, travel insurance policies have evolved to address the diverse demands of the insurance customer. This article examines the different types of policies which are available and appropriate for varied kinds of trips.
If you are traveling for a winter vacation, you may want to invest in winter sports insurance. These policies cover activities like snowboarding, snowshoeing, downhill and cross-country skiing. Not only do they insure against injuries, they also cover damage to sports equipment, which can be very expensive. This is especially important if you are traveling abroad. For British citizens, for example, fewer than 60 countries have a reciprocal health care agreement with the United Kingdom. A broken leg during an Alpine ski vacation could cost £25,000.
If you plan to participate in high-risk activities like bungee jumping or whitewater rafting, you may want to take out an adventure vacation holiday policy. Adventure activities may not be covered by a traditional travel insurance policy. If you fail to take out enough insurance, you could face large bills over a minor accident. Make sure that the activities you plan to do are actually covered by the policy you buy.
Backpacking trips may also need special insurance policies. Backpackers’ insurance can be purchased to cover up to 18 months of travel. There are also policies to cover those working abroad which you may need if you plan to travel for a long period, especially if you are a student. Check carefully to make sure that your backpackers’ insurance policy covers the countries where you actually plan to travel, especially if you are going somewhere not covered by the EHIC card. Nations in the third world or suffering warlike conditions may also not be covered.
If you need to travel abroad for work, you may want to look into business insurance. These policies cover equipment like PDAs and computers as well as business documents. Sometimes the policies reimburse for travel expenses if one staff member falls ill and another has to travel to take his or her place—the insurance provided by an employer may not cover this.
Standard insurance policies often have an upper age limit, most often 65. Once this limit is reached, travel insurance can become more expensive because the customer is considered a higher risk. In this case, you should look to providers who specialize in the senior citizen market for travel insurance. No matter what your age, if you have pre-existing medical conditions it is very important to tell the insurance company before you purchase. Although it may increase the cost of the policy a little, it is a small price to pay—any medical conditions that were not declared at the outset will likely not be covered and high bills will result.