Traveler's insurance?

bruce3404

Emergency travel insurance is particularly valuable if you're going to be in an isolated area. You'll be in Calcutta. There are good international hospitals in Calcutta, so emergency evac isn't really much of a factor. The main reason for purchasing health insurance would be if you had a catastrophic event, like a heart attack. If you're young and in good health, I wouldn't worry about it.

Mickey S

But travel insurance does not only cover medical issues at your destination.

It will also cover loss due to having to cancel the entire trip due to unforeseen events; it pays for returning home early due to unforeseen events; it pays for the cost of rescheduling your holiday due to missed flights for reasons beyond your control (although I doubt they would pay out if you forgot to get a visa!); it pays for full legal assistance if you were to get into a situation where it were needed; it pays for lost luggage and the immediate cost of replacing essential items; and it pays to replace items that are lost or stolen while travelling.

All these events are unlikely to happen, of course, but that is why travel insurance is so cheap. You are paying at most a couple of hundred dollars to insure against something which, if it happened, could cost you tens or hundreds of thousands of dollars.

I recently had to cancel three planned holidays due to an injury to a close family member. I had paid £65 for an annual travel insurance policy and it paid me over £1,100 in respect of air fares that had been non-refundable. The event was completely unforeseeable and extremely unlikely to happen, but it did. That's what insurance is for.

Travelling without insurance is foolhardy. I don't even take the train to Paris without it.

machadinha

Just a quick note (there's another more relevant thread on it running I think, mentioned above here? I just haven't been bothered to answer so far) that in my country the two are quite distinct: I.e., covering medical costs (and what kind precisely, depending on your package), and/or theft or loss.

The first I'd consider essential, esp. regarding repatriation or serious hospitalization, more mundane local costs will likely be manageable (or at least in a place like India; you don't want to know what a simple hospital procedure in Europe or the US etc. will cost you); the second I'd consider optional, but then again I don't carry much around that I couldn't do without anyway.

Another thing about medical travel insurance is that where I live again you can get year-round coverage, but the fine print will usually limit this to a couple of months per year. You'll really want to look into this if you're a frequent or long-term traveler.

ps Depending on your package you may well have to cover for canceled flights separately again. Or again at least that's how it works for me, it's not covered under my regular package. Here at least, it's usually offered together with your ticket.

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Nick-H

Good point! In my ex-country, when I last bought any a few years back, "travel" insurance covered a number of risks including cancellation, loss of property and medical stuff.

In more recent times, I've seen 'health' insurance offered, independent of the other risks.

Make sure that you know what you are buying! In insurance, the fine print is everything.

And, another good point that it might be an annual policy, for regular travellers, but still only cover a limited total period abroad: they are covering travellers, I guess, not long termers.

Insurance, like cocoa, is a wonderful product: but you have to know what you are buying!

(I was recently pleased to find a tin of Cadbury 'cocoa' on sale for much less than the previous one I bought. It tasted like one of those machine-made 'chocolate' drinks, and a proper look at the tin told me it contained natural and artificial this, that and the other.)

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bruce3404

To each their own. As a former owner of an insurance agency, I can tell you that insurance companies are in business to make a profit (now there's a bold statement, eh?). While I cover myself with a large umbrella policy, auto, home and life insurance, I've always thought travel insurance to be a bit of a rip off, not unlike extended warranties on goods. In 35 years of traveling, I can't think of one time I would have used traveler's insurance. I will say that a good reason for buying it is if a loss would be financially incapacitating to the point that you couldn't get home, for instance. But travel insurance for the train to Paris?

roopeeman

I didn't know you can get a traveller insurence? does it cost a lot?

Mickey S

Depends on what level of cover you need and for how long.

There is a very competitive insurance market in the UK and prices are low. You can get an annual insurance policy, which covers you for travel anywhere in the world for a year (with, usually, a maximum of 30 consecutive days away) for about £50 upwards.

You can also get policies for single trips, which are useful if you travel rarely or if you plan to be away for more than a month.

It's important to shop around. Never buy insurance from a travel agent as they are amongst the most expensive.

If it helps, I always shop around and currently find Norwich Union to be the most competitive. Their annual travel insurance (worldwide excluding the US and Canada, maximum single trip of 31 days) is £44; for a single 60-day trip to India it's £80.

Mickey S

Just in case I lose my passport, or my return ticket, or my wallet. Or I sustain an injury that is not fully covered by reciprocal EU healthcare.

That's what insurance is all about, after all - "just in case".

kmalik

Having argued very similar logic earlier, I wholeheartedly support the arguments made by bruce3404. That said, the attractiveness of the proposition offered by travel insurance to some seems like religion, where for those who believe, no proof is necessary!

I believe that on this thread, the cost is under-represented and benefits are over-represented. An instance of over-representation of benefits is "does not only cover medical issues at your destination..." To that I say - read the fine print. Travel insurance, especially the 50 pound variety mentioned in the same post, is not a substitute for medical insurance. Initial costs of emergency treatment are covered, with plenty of wiggle room to ensure the insurance company in not holding the bag for much. I have a personal/family experience where my uncle visited the US from India, had some issues on the flight for which he got treated in the US. The family ended up with nearly 100% of the costs, as the insurance wiggled out after paying for the first visit and none of the follow ups or prescriptions.

I continue to believe that the financially sound principle in insurance buying is: "if a loss would be financially incapacitating to the point that you couldn't get home..." - buy the insurance. Otherwise, hold on to your money.

Mickey S

Would you like me to post the "fine print" of my policy?

In the UK we tend not to have medical insurance, as everything is provided free of charge by the state. Our travel insurance generally offers very comprehensive medical cover - in my case, up to £2 million. I think that should cover almost all imaginable eventualities, even in the US.

kmalik

Last time I checked, Minnesota (where the OP whom you are ostensibly advising is located) is in the US and the health insurance here is anything but free of charge.
I did not know about the 'free lunch' in the UK. Around the rest of the world, you typically get what you pay for. Anyone underwriting 2M pound coverage for 50 pounds either has umpteen wiggle out clauses or some other way of ensuring a very low payout probability. Otherwise, they will not in business for too long.

Mickey S

You seem to be intent on personalising this debate, kmalik. I don't intend to continue contributing.

kmalik

No personal slight intended at all on my part. All the same, I regret whatever in my post caused you offense.

I do strongly disagree on the core advice, as I have attempted to point out in my posts.

PS: I did confuse this thread with another thread on pretty much the same topic. If my use of term free lunch was misunderstood, what I meant was this.

Dunc

its all to do with risk, nothing to do with affording to take out insurance.

kmalik

Two good discussion articles on travel insurance can be seen here and here. The 9 reasons to buy travel insurance listed in the second article are:
1. Your flight has been canceled.
2. Your bags are lost and your medication is in it. You need to have an emergency prescription filled.
3. Your passport and wallet are stolen, and you need emergency cash and a replacement passport.
4. You're involved in an accident and adequate medical treatment is not available. You need medical evacuation.
5. You need to cancel your trip due to illness.
6. Your cruise line, airline or tour operator goes bankrupt. You need your non-refundable expenses covered and to get to your destination.
7. You have a medical emergency in a foreign country.
8. A terrorist incident occurs in the city where you’re planning to visit and you want to cancel your trip.
9. A hurricane forces you to evacuate your resort, hotel or cruise.