Whether you’re travelling domestically or flying to the other side of the world, there are many unpredictable things that could happen during your travels. From losing your luggage at the airport to being involved in a motor vehicle accident, to a natural disaster occuring - no one can ever predict what you may encounter during travelling.
None of us like to think about the worst case scenarios - especially in a foreign country - but it’s so important to prepare for them! That’s where travel insurance comes in.
Let’s take a deeper look into travel insurance, why you should have it and how it can contribute to making your travels hassle and stress free.
What is travel insurance?
Let’s start with the basics; what exactly is travel insurance? According to Wikipedia; travel insurance is insurance that is intended to cover medical expenses, flight accident, lost luggage, trip cancellation and any other losses incurred while travelling, either domestically or internationally.
The best way to look at it is to think of travel insurance as financial protection; it covers you during your travels if things unexpectedly go wrong. Travel insurance allows you to protect yourself and your belongings during a trip, providing you with peace of mind that you’re covered if the worst were to happen.
Depending on which travel insurance company you take out your policy with, you can get additional cover for the things you love, such as adventure activities, ski insurance and specific items you just can’t leave behind.
As with any type of insurance, it’s always best to shop around and find a policy that best matches your needs and requirements. It’s best to get cover before you leave for your trip - luckily, nowadays it’s easy to research travel insurance and compare policies to find the best type of cover.
Why would you need travel insurance
Whether you’re a first time flyer or you’re a well seasoned adventurer, it’s a given that you’ll embark on an exciting new adventure that you’ll treasure and remember for years to come. Travel should always be celebrated and encouraged, however the truth is that even the most sort out plans can go awry.
The old saying goes that “if you can’t afford travel insurance, then you can’t afford to travel” - and this is very much true. Anyone who travels regularly, who is travelling overseas or is travelling from island to island should invest in travel insurance.
Without insurance, you could be facing expensive medical bills, lost luggage and belongings or even losing your entire travel plans due to unexpected illness.
The only time you may not require travel insurance is if you’re only travelling a very short distance for a very short time. For example, a businessman travelling from Wellington to Auckland just for the day for a meeting may not require insurance. However, he would still be at risk of having to replace any lost items/luggage during his travels.
How travel insurance can make your holiday stress free
When it comes to travel, leaving your comfort zone can bring you exciting experiences; but regrets should definitely not be one of them. With adventure comes risk, and your holidays are too precious to spend time trying to deal with damage control if an accident were to occur.
Investing in travel insurance is the key to safeguarding your trip, giving you peace of mind and allowing for a stress free holiday.
What does travel insurance cover?
Medical and hospital expenses
When you start to compare travel insurance quotes, you’ll soon see that the majority of policies cover ‘medical and hospital expenses’. This can cover a variety of medical needs, from getting prescription medicine for a stomach bug to surgery expenses if you’re injured during your travels.
Hospital fees in the United States, for example, can reach as much as $10,000 per day, with transport back home to New Zealand costing anywhere up to $300,000. Having travel insurance will help to cover these medical costs, eliminating stress from both you and your family by not having to come up with a large sum of money at once.
With comprehensive travel insurance, you can travel with complete peace of mind, knowing any medical expenses are taken care of if the unexpected happens.
Cancellation cover and alteration
From time to time, there are people unlucky enough to have to cancel their holiday and return home due to an accident, sickness or the passing of a loved one. The last thing anyone wants in this situation is the stress and financial burden of securing and paying for last minute flights.
Travel insurance helps to recuperate any lost costs and deposits during this type of event. Your insurance will also help with expenses involved with canceled or delayed flights, such as meals and nearby overnight accommodation.
Without travel insurance, you may find yourself having to sleep in the airport overnight while you wait for a flight the next day!
Personal items like luggage
Whether your luggage has financial or sentimental value, it’s only a given that you want to come home with more than you left with - not less. Too often travellers can have their holiday ruined by the case of delayed luggage, damaged or stolen items and lost luggage.
That’s where travel insurance comes in - it will provide cover for personal items and baggage if anything were to happen to them. Insurance will provide cover generally anywhere from $10,000 to $25,000, depending on your chosen policy.
If you have an accident while travelling and become liable for damages, legal expenses and compensation, the costs for you and your family can end up being very high.
With personal liability travel insurance, you will be covered for any third-party insurance claims. This includes the cost of damages, injury or loss you may cause to someone; such as breaking something expensive in a shop or causing a vehicle accident.
Ensuring you have personal liability included in your travel insurance provides additional protection and peace of mind, so you can get on with enjoying your holiday.
Other forms of cover
Your average travel insurance policy will cover the basics - like medical expenses, canceled flights and lost luggage - however, there are other forms of cover that some insurers may include in their policies.
For example, Southern Cross Travel Insurance provide bank card, passport and travel document cover as part of their travel insurance packages. This means if you were to have your wallet stolen, your passport badly damaged or lost/stolen travel documents, Southern Cross will cover the costs (up to $1,000) to replace the items.
When you’re choosing between NZ’s top travel insurance companies - like AMI, AA, Southern Cross and more - be sure to compare the policy details and features, as some will provide more cover than others.
Get the best price on your travel insurance today
Some of the top insurance claims in New Zealand have been made while Kiwis are travelling overseas - that’s why it’s so important to get cover before you leave for your holiday.
If you’d in the midst of planning your overseas trip, we can help you get the best price on your travel insurance, no matter where you’re travelling to!
With our online comparison tool, you can compare all of the best travel insurance providers in New Zealand - all in one place! Simply provide us with a few details about your upcoming trip, and we’ll present you with the best travel insurance quotes available.