Travel Insurance

What is travel insurance?

If something goes wrong while travelling around New Zealand or internationally, travel insurance will provide cover that protects you financially.

There are various types of travel insurance policies available that usually fall into two categories:

Comprehensive policies offer higher coverage limits compared to budget policies.

Budget policies may only cover medical expenses and personal liability.

Single-trip policies suit most travellers, while an annual multi-trip policy can save money for those with multiple trips within 12 months.

Some credit cards offer travel insurance as a perk of their benefits and rewards program. Credit card travel insurance usually has similar benefits and limitations as comprehensive policies.

What does travel insurance cover?

Depending on the type of policy you choose, many events can be covered; here are the most common ones:

Trip cancellation: If you have to cancel your trip for unforeseen circumstances, you can recoup some or all of the costs paid to date or the cancellation costs if you have cancellation cover.

Medical costs: Getting sick or injured while travelling can be very expensive if you don’t have overseas medical cover. Particularly if travelling overseas, medical assistance can be quite costly. Medical cover may provide funding for your medical and dental expenses and emergency evacuation, depending on the policy. Make sure you check if your policy covers COVID-19.

Lost baggage: Don’t let lost luggage ruin your trip. This type of insurance covers claims related to lost, stolen, or damaged items during your trip.

Death or injury on a flight: You’ll be covered in an accident or other event that causes injury or death while on a flight.

Adventure sports: If you’re a thrill seeker, this type of insurance is a must. It provides coverage for injuries that happen during activities such as skiing, snowboarding, or rock climbing.

Personal liability: A travel insurance policy can cover your legal expenses if you accidentally injure someone or damage their property while travelling. It can even cover your rental vehicle insurance excess if you happen to bang up the rental car.

5 things to look for when buying travel insurance

Here are the key things to consider when comparing travel insurance options:

Coverage: Compare the coverage offered by different policies to ensure it meets your needs. Figuring out what you actually need coverage for will save you money. For instance, if you’re not going skiing, you don’t need to pay extra for snow insurance. And if you’re going to be taking public transportation, you don’t need rental vehicle excess insurance.

Exclusions: Understand what is not covered in your policy — exclusions can vary widely between policies. Pre-existing medical conditions, certain activities and travel to some destinations are commonly not covered.

Cost: Compare the price of each policy, but don’t opt for the cheapest coverage without carefully considering what is included. If you’re not properly insured, trying to save money upfront could cost much more in the long run. Keep an eye out for any discounts or special offers.

Limits: Check the policy limits for each type of coverage. Generally, there is a benefit limit for each type of coverage. For example, you may be limited on the amount you can claim for medical expenses, lost or stolen baggage, or coverage provided for trip cancellation.

Customer service: Check out reviews for the provider you’re considering. Look for those that mention the ease of making a claim and the level of customer service the insurer provides.

A lot of negative reviews can be a red flag — it’s best to steer clear of that insurance provider.

Don’t skip over the Product Disclosure Statement (PDS)

When you’re getting insurance, be sure to check out the Product Disclosure Statement (PDS) carefully. It has all the details about what’s covered and what’s not.

By buying a policy, you’re acknowledging that you’ve read and understood the PDS and accept its terms and conditions. Taking a little time to review your policy can save you money and give you peace of mind later.

If you need extra coverage like snow protection or rental car insurance, add that to your policy. And remember to let them know if you have any pre-existing conditions because that could affect your coverage.