While many people decide to splurge on new baggage or on extra fancy hotel accommodations, the smart traveller will tell you that the first thing you should consider is your travel insurance. Since you are off to a foreign destination, you should make sure that you are covered for medical or emergency expenses. Travel insurance is something that every person should invest in before a trip.
Some people may think that this is a waste of money, without considering what sort of protection this type of investment brings. Please note that if you cannot afford decent travel insurance, you should not go on the trip. This is a safety net that you will be glad you invested in, should anything go wrong.
Understanding the Excess travel policy
Basic travel insurance covers the essentials. This should include medical and emergency coverage, cancellation and delay, passport and documents, personal possessions and personal money. With this policy, you provide yourself with security and confidence that if you did misplace something or needed medical assistance, you would not have to pay for everything out of your own pocket.
If you are looking for travel insurance that will allow you to pay a lesser premium, you might want to consider excess travel insurance instead. This type of policy is considerably cheaper and may be a better option. Just remember that this is the part of the insurance you agree to pay in case of a claim.
As soon as you pay the agreed-upon excess, the insurance company will cover the remaining cost, up to the limit of your policy, of course. While the usual policy makes companies pay right away from any losses, this type of insurance will have you pay the set amount first before paying the maximum coverage.
Is this policy best for me?
You might think that most people prefer the usual travel insurance policies. However, you will be shocked to find out that many people prefer the excess travel insurance. And why shouldn’t they? This allows you to travel without having to pay a hefty sum for your premiums. You get to choose your set amount as well. Please note that if you choose a higher set amount, you will conversely enjoy even lower premiums.
While the excess insurance policy sounds very appealing, make sure you can afford to take the risk. If you are abroad and you lose all your personal possessions, including your traveller’s cheques and credit cards, you might find that it would have been better to invest in the regular travel insurance. Please keep in mind that you should have the set amount on your person all the time, should anything go wrong. You might want to keep your money and credit cards in a secret pocket, instead of putting these in your bag, as most pickpockets usually target people who look like tourists.
The excess travel policy is great, due to its low premiums. However, before you decide to choose this policy instead of the regular one, make certain that you understand what it entails and have the set amount ready in case you need it.