7 essential questions to ask when buying travel insurance

In recent years, there has been an increase in the purchase of travel insurance as more people are becoming aware of the importance of travel insurance to cover unforeseen events or circumstances such as accidents and natural disasters.

It can be overwhelming when attempting to digest all the information that an insurance policy entails. From outpatient medical expenses, emergency support, personal liability, loss or damage of personal belongings and more to take note of, how do you know which is the best travel insurance plan for you?

Here are 7 essential questions to help you.

1. How do I ensure that the policy covers my needs for the upcoming trip?

Identify the risk factors and list down your priorities. Are you participating in sport activities like skiing? Visiting a country that is politically unstable or prone to natural disasters? The kind of protection needed for a traveller who intends to go skiing in Japan, for example, vastly differs from that needed by a family taking a road trip in New Zealand. If you are renting a car in New Zealand, you would want to ensure the coverage for car rental is relatively higher and you can afford to forgo the coverage for sports equipment. The reverse applies if you are skiing in Japan.

Understanding these points helps you prioritise what to look out for when you’re doing your research and ensure that the policy provides a comprehensive coverage for your needs.

1. How much should I spend on my travel insurance?

. For example, the cost of travel insurance for a 1-week trip to Bali costs an average of $20 – which is about the price of lunch for one person at a nice café in Bali. The cost is dependent on a number of risk factors including, but not limited to:

• Length of trip

If you are travelling for more than 30 days, as opposed to only three, the risks of getting injured or having travel disruptions are much higher.

• Destination

Insurance companies have different ways of classifying the destinations they cover (termed as ‘zones’): while some classify as ‘Asia’ and ‘Worldwide’, some categorise them as ‘Zone 1’, ‘Zone 2’, ‘Zone 3’, with ‘Zone 3’ usually being the furthest. The cost for a trip to Thailand, for instance, falls in ‘Asia’ and would be significantly less expensive compared to a trip to Argentina, which would fall under ‘Worldwide’.

• Type of coverage

The price increases according to the level of cover you would like. For example, if you are planning to rent a car, selecting a policy that provides car rental collision coverage, medical expenses or medical evacuation increases the rate over a basic plan for a spa trip to Batam. In essence, the higher the risk of your activities, the higher the premium.

Now, is that not worthwhile? Considering the fact that it is a small amount to pay in exchange for a worry-free trip that protects you and your interests.

1. What is the claims process?

Be sure to fully understand the claims procedure prior to travelling. You wouldn’t wish to be caught in a situation where an incident happens and you are left stressing out on what the next steps are and how to proceed. Ideally, the claims process should be fast and fuss-free, so that you have the help and support you need as soon as possible.

In fact, we are Singapore’s first insurance company to offer an entirely online experience where customers are able to conveniently submit their flight and baggage delay claims through an efficient ‘Click-to-Claim’ functionality. Claims submissions can be done by sending a photo of the baggage slip or the flight delay notification board to the claims department via WhatsApp. This reduces the time needed to submit a claim and the function allows pay-outs to be made within 3 to 5 working days.

1. Will the policy cover me in the event of unforeseen circumstances?

With the increase in events like terrorist attacks, natural disasters, and bad weather, it is imperative that your travel insurance policy covers you in the event of unforeseen circumstances. At FWD, we strive to keep up all changing circumstances potentially affecting travel so that our travel insurance product is not only current, it caters to the needs of today’s customers.

For instance, Singaporeans are no strangers to being plagued by the haze that visits us every year. With low visibility during the haze period, there is a high chance of flights being delayed, diverted or cancelled. In fact, in 2015, many were not able to make claims for compensation under their respective policies. FWD’s travel insurance provides full coverage for haze-related flight delays or cancellations, so you will not have to worry about not being reimbursed in the event of a hazy situation.

1. What is the difference between medical coverage and medical evacuation cover?

Medical coverage covers outpatient medical expenses incurred while medical evacuation covers transportation costs to an appropriate medical facility or if you need an immediate flight home.

For medical evacuation cover, it is essential to take note of the policy limit as to how much the evacuations will be covered as an emergency evacuation would potentially cost thousands of dollars.

FWD is one of the insurers in Singapore that provides unlimited medical evacuation and repatriation for all levels of cover, so that our customers don’t need to worry about transportation costs in the event of a situation that requires medical evacuation. Furthermore, should you require assistance, we are always ready to help with our 24-hour emergency helpline. Regardless of the agent, it is crucial that you save the hotline number of your insurance company as you never know when it might come in handy.

1. If I am renting a car overseas and it gets damaged or stolen, what does the policy cover?

In the event that the car you rented gets accidentally damaged or stolen, “excess” is the total sum of money you are required to pay the car rental company. Hence, having car rental excess protects you from the excess costs you would otherwise have to pay for the damage incurred.

Claims can only be made with the provision of a valid license and you must either be the named driver or co-driver of the rental car. Additionally, all rules and regulations of any country you drive in must be followed and there must not be any violations to your car rental agreement. Lastly, be sure to note how much the policy covers and what it covers, as it could merely reduce the amount you would need to pay or a certain type of damage may not be covered.

Opting for car rental excess cover in your travel insurance will definitely offer you peace of mind and potentially, savings, should you damage the car on your driving holiday.

1. Does my policy cover medical expenses whilst I’m overseas and after returning to Singapore?

It is important to ensure that your policy covers medical expenses incurred when you are overseas AND those incurred after returning to Singapore. In the event that treatment is not straightforward and require several sessions, you would want to ensure that the follow-up treatments back in Singapore are also covered so as to not incur additional costs.

Conclusion

When evaluating which travel insurance policy to buy, it is essential to ensure that your priorities and needs are comprehensively covered. Prioritise your needs over the costs and do not be swayed by the price as a cheaper policy does not mean it will be better. Do your due diligence and never wait until the last minute to buy your travel insurance policy as you may end up purchasing something that is costly and/or irrelevant to your needs. Rather than spending your holiday stressing out, be prepared and get a quote now.