There are so many errands to take care of when you are planning to travel and that includes insurance. With the different kinds of insurance, how do you know when you are acquiring the correct excess travel insurance? Here’s a guideline to help you understand it.
First of all, you have to know what excess is in terms of travel insurance. Simply put, the excess is the part of the insurance that you agree to pay while the remaining amount will be covered by the insurer.
So, you have to take note of the amount you are paying as a policyholder. For example, if the insurance costs £600, the excess is £150, that means the insurer will pay £450 for the damages included in the insurance.
Short travels or single trips have cheaper excess travel insurance cost because they are low-risk. Annual trip travel insurance is also considered low-risk. This is the type of insurance business people use since it covers multiple trips in a year. Long stay travel insurance is for people who will stay from 3 to 18 months.
However, it is recommended to get an annual cover if you travel more than three times a year. According to Moneysavingexpert, constant travellers should get an annual coverage because it will cost you less compared to buying a separate travel insurance for every trip. But, you have to take note that annual policies do not cover extended trips. They usually cover travels that would last for a maximum of 31 days.
For independent travellers, it is recommended to get a scheduled airline failure cover. If you arrange your own accommodations, this coverage will help protect you if an airline, ferry firm or Villa Company goes bust after booking. But, you have to take not that most policies, even five-star policies, do not cover airline failures.
Most excess travel insurance include healthcare policies. It is recommended for those travelling to Europe to get an EHIC (European Health Insurance Card). This will give you a state-provided healthcare at a lower cost, sometimes free when having a temporary visit in an EU country like Liechtenstein, Norway, Iceland and Switzerland. To apply for an EHIC, which is valid for up to five years, go to their website ehic.org.uk and fill-in their application form. Otherwise, you can opt to call at 0845 606 2030 or get an application form from the Post Office. You must supply the surname, forenames and birth dates of applicants as well as the NHS (national insurance number).
A standard insurance policy will cover emergency medical treatment, hospital benefits, personal liability, legal expenses, loss of personal belongings/baggage, and missed departures. Every traveller has a different need but the standard policies will cover most of unprecedented needs.
While paying for an excess might sound risky, this is actually good for people who are looking to get low premiums. In case something will happen (accidents or an unexpected event), the excess is nothing compared to the amount the insurer will pay for.