While you might be reluctant to buy travel insurance, you’ll be glad to have it when things go wrong.
As a natural catastrophiser, I spend a lot of time thinking about things that could go wrong – even on holiday. Perhaps I’ll be caught up in a life-threatening multi-car pileup on the motorway on the way from the airport, or I’ll slip in the shower on my first night and spend the next 10 days in a foreign hospital or be pick-pocketed by a street urchin while I’m temporarily distracted by the astonishing sight of a gold-painted human statue who appears to be floating in mid-air. Those guys really are mesmerising.
Luckily for worrywarts like me, there’s a thing called travel insurance. Nobody knows the ins and outs of travel insurance better than Greig Leighton, Chief Partnerships Officer at AA New Zealand, and while he couldn’t promise that I won’t ever be attacked and bitten by a feral squirrel while strolling through Central Park, he did confirm that travel insurance would help if I was.
Travel insurance can act as a back-up plan against unforeseen illnesses, accidents and travel disruptions while you’re away from home – and even before you depart for your trip. While insurance is a product people might not like to buy (nobody likes to pay for something they might not use, Leighton reckons), it’s a necessity if anything goes wrong. “Ninety-five percent of people pay an insurance premium, and their holiday goes absolutely seamlessly,” he says. “It’s only 5% who come unstuck – but the people who do, they need help.”
So, in a world full of danger and disasters, will travel insurance help me when I chip my tooth and need emergency dental treatment, or if I slip and break my coccyx at La Tomatina? Leighton assures me that travel insurance can cover accidental medical events and some related treatment costs that can quickly add up to hundreds of thousands of dollars. In the worst-case scenario, your insurer can medevac you to hospital to receive critical life-saving healthcare.
Leighton stresses the importance of declaring any pre-existing medical conditions when buying a travel insurance policy. “You don’t want to have a claim declined for a pre-existing medical condition you did not declare. By declaring your condition, it doesn’t always result in an increased premium, but sometimes it does”.
What if I’m stuck in a traffic jam from the result of a fatal multi-car accident on the way to the airport and I miss my flight? Missed connections and travel disruptions may be covered, but Leighton points out that “you’ve really got to read those terms and conditions to understand what the airline should cover, and what your travel insurance policy should cover.”
What if you’re pick-pocketed on public transport and your belongings are stolen? You’re covered* – as long as you weren’t being negligent with your property. What if a huge typhoon comes through, the airport is a washout, and my flight is cancelled? Leighton says coverage for natural disasters depends on what type of event it is and the effect on your travel.
And if the worst happened and I was squished to death by a falling window (this nearly happened to me in London – true story), would travel insurance help my flattened carcass get home to Aotearoa? You bet. Leighton cheerily confirms that body repatriation or funeral expenses where the death occurred are covered, as is accidental death or permanent disablement.
Leighton also stresses that travel insurance is “a must”, but before he could answer my long list of hypothetical (some might say hysterical) travel mishaps, he shared some key things to know about travel insurance.
Buy your policy as soon as you book your travel plans. If you trip over the cat and break your leg one week before your skiing trip to Japan, you’re covered* – but only if you have already purchased your travel insurance. “It’s a really important point, because a lot of people will go through that sequence of booking air travel, then accommodation and tours, and travel insurance comes later,” Leighton says. Buying insurance immediately means you’ll be covered for unforeseen disasters that happen before you leave.
Choose the policy that’s right for you. Are you travelling domestically or internationally? Is it for leisure or work? Are you heading across the Tasman for a weekend of shopping, or planning a round-the-world adventure trip? Different policies have different levels of cover, and it’s important to choose the package that suits your needs. “If you’re doing something that’s got a little more risk around it, then look at the general and section exclusions in the policy wording around the cover you’re covered* for,” Leighton advises.
Always read the terms and conditions. This is a big one. “Our strongest recommendation is for people to read the policy wording so they know what is covered, but more importantly, the exclusions as well,” Leighton says.
Seriously, read the terms and conditions. Every travel insurance policy has exclusions (things or activities that won’t be covered), and it’s important that you know what these are in advance – for example, some policies don’t cover off-piste skiing, while others will only cover motorbike accidents up to a particular CC level. If you’re in any doubt, Leighton recommends contacting your insurer to seek clarity.
There’s a 14 day “cooling off” period. Every customer has 14 days to change their mind, cancel their policy and get a refund. “If you suddenly decide to read your policy and go, ‘I wonder what that means?’, you can exit, or get some clarity from us within that 14-day period,” Leighton says, adding that this is a great “backstop” for consumers.
Thankfully, probability suggests most of us will be part of the lucky 95% who don’t need to claim travel insurance – but if you do have a disaster while you’re away from home, it’s clear that the right insurance policy is invaluable, as peace of mind is priceless. I have one more question before Leighton departs: what if I’ve booked a trip to Australia but booked accommodation in Austria? Out of all my hypothetical travel troubles, Leighton’s not sure about this one. “I think we cover most things, but I think silliness probably isn’t one of them.”
*Please consider the Policy Wording before making any decisions about AA Travel Insurance. Terms, conditions, limits, sub-limits and exclusions apply.
