The Importance of Travel Insurance. How to Make the Right Choice
Travel insurance is often overlooked when travelling to different countries. While it is easy to assume that there will be no accidents or your health is in check, it never hurts to be sure. It is also a common misconception that travel insurance is only for medical protection. This is not true; it also provides coverage for things such as stolen items, broken belongings such as a camera, and emergency flight situations. For only a few dollars a day, you can be insured and at ease to enjoy your travels. Travel insurance is not for everyone but you should learn about it so you can make sure that you are making the right choice.
Current Pitfalls with Travel Insurance
Unfortunately, travel insurance can be very complicated and confusing. There are simply too many options out there with many not written in plain-English making them hard to interpret and understand. As a result, in choosing any travel insurance plan, it is important to take your time to read and clarify anything you don’t understand. Recently, a couple from British Columbia were shocked to receive a $341,000 bill for emergency heart surgery performed in Florida while travelling. They were insured by Manulife, however, due to the confusing application form, they failed to fill out the proper requirements. This couple is a part of the 15,000 that are denied travel insurance claims every year out of the 500,000 filed.
Whether you are looking to purchase travel insurance for the first time, or want to avoid having your travel insurance denied, there are a few things to look out for that will help you determine whether your plan is good or not.
Coverage Limit
The first thing to look out for is the coverage limit. Generally, you want to look for a plan that provides high coverage on medical expenses. A suitable number is generally in the range of $100,000; however, there are policies that cover up to $1,000,000 which can be purchased for a higher cost. The importance of high coverage limit cannot be understated. Hospitals can charge ridiculously high fees, especially in the US, for sickness, injury, or any other medical related circumstance. It would be very unfortunate to for example, break an arm, and only have a $10,000 coverage limit when the bill is much higher. It is never a good idea to be cheap when it comes to your health.
Extended Coverage
The second thing to look out for is coverage beyond medical coverage. This includes things such as evacuation to a hospital should you be in a remote location. For this coverage, it is recommended you look for coverage to be above $100,000 and in the $250,000 to $500,000 range. Be sure to double check and see if evacuation includes evacuation from the hospital to your home country as this may sometimes be necessary and extremely expensive.
Other things that may be important to you in terms of coverage include:
- Personal accident coverage
- Lost, damaged, or stolen personal possession coverage i.e. cameras, cell phones
- On call emergency services
- Cancellation and emergency flight and accommodation coverage
It is important to know that most policies do not provide high coverage on personal belongings such as electronics. Be sure to read the fine print and to see whether or not the specific coverage you’re looking for is provided in the country you are travelling in. Your home insurance policy may also already include personal belonging coverage, so it is worth speaking to your home insurance representative with regards to this.
Other things to check
It is easy to assume that injuries or medical circumstances incurred while performing activities are covered under your policy. However, it is important to know that many policies specifically indicate circumstances that they do not cover. For example, injuries or accidents occurring during extreme activities such as hang gliding or even during periods of intoxication such as alcohol or drug induced accidents may not be covered. Furthermore, some policies refuse coverage on carelessness and negligence. Just because you are insured, doesn’t mean you can act in an unreasonable manner. If you do, you may face substantial costs for which you simply cannot receive coverage.
Understand that when making a claim, it can take some time to receive payment. Insurance companies tend to take their time in order to ensure that they are not paying more than they have to.
Recommendation for Travel Insurance Provider for Canadians to US
Medipac
Medipac Travel Insurance is the number one travel insurance provider recommended by the Canadian Snowbird Association for the past 22 years. They provide comprehensive coverage and provide a good balance in terms of price, medical coverage, and emergency assistance services. In addition, the Medipac Plan covers most pre-existing conditions, regardless of age. The policy is also written in an easy to understand manner. They also provide discounts for claim free individuals, loyal customers, and early bird travelers. Lastly, they provide 24 hour emergency assistance provided by in-house medical experts compared to most companies using third-party call centers. Be sure to check with multiple providers and do some research to ensure you are working with the provider that best suits your needs.
About the author: KnightsbridgeFX is an independent foreign exchange services provider. They guarantee the lowest exchange rates at an uncompromising high level of service. To learn more visit their website at www.KnightsbridgeFX.com or call 1-877-355-5239.