Travel insurance: everything about it and how to choose the best

What is travel insurance

Travel insurance is designed to protect you against financial losses and risks associated with travel. It provides security and support in the event of unexpected events that may occur during your trip, such as illness, loss of luggage, etc. It is designed to mitigate the impact of these unforeseen events and to enable you to quickly and easily deal with problems that may occur outside your home country.

What travel insurance covers

Basic travel insurance options usually include only the following two types of services:

1. Medical treatment and medical assistance: Coverage for the cost of medical care abroad, including hospitalization, outpatient care, medications and possible repatriation.
2. Assistance services.

Among the additional services, which usually come at an extra cost, you can also find:

• Luggage insurance: compensation for lost, damaged or stolen luggage and personal belongings.
• Liability insurance.
• Flight delay or cancellation insurance.
• Risky sports and activities insurance: Coverage for medical expenses and liability while participating in adrenaline and extreme sports such as skiing, diving, rock climbing and more.
• Extended Health Insurance: Covers medical expenses beyond the basic health insurance, such as dental treatment or pregnancy-related costs.
• Legal assistance: Assistance and cover for the cost of legal services abroad in the event of legal problems.
• Travel insurance for animals: Cover for costs related to veterinary care, damage caused by animals, etc.
• Trip Interruption Insurance: Compensation for costs if you have to interrupt your trip due to illness, accident, major family event or other unforeseen circumstances.
• Calling a Guardian: Covering the cost of calling and transporting a loved one to come and visit you abroad if you are hospitalised or in another serious situation.

Why not forget about travel insurance

Simply because for a few tens of crowns a day you can save up to hundreds of thousands of dollars. Especially in some countries, healthcare is really expensive. For example, you can pay up to 22,000 crowns for an X-ray in the USA, and a one-day stay in hospital costs an average of 65,000 crowns. So how much will an acute appendectomy with a few days in hospital cost you? On average, you will pay CZK 300 000 for the operation alone , plus three to five nights in a hospital bed. And you’re half a million poorer!

And you’ll still be out of pocket in cheaper countries like Thailand. Here, you’ll have to go to a private clinic, otherwise you’re unlikely to get a deal. And in Thailand, you’re never far from a motorcycle accident or an encounter with an exotic disease you definitely don’t have the antibodies for.

You may think you don’t need travel insurance when travelling within the European Union, after all you have a universal blue insurance card(EHIC). However, this belief can be very expensive. Individual European countries can vary considerably in terms of local cover for medical expenses. As a result, many procedures may be charged for even if they are covered by your insurance company. The total amount can easily run into tens of thousands. In addition, it may happen that you need to be examined in a private hospital , in which case the EHIC is useless, as you will have to pay for the entire examination out of your own pocket. Within the EU, you are only entitled to basic essential healthcare. Repatriation and assistance services are not covered at all.

Although it may not be obvious at first glance, travel insurance is worthwhile even when travelling within the Czech Republic. This doesn’t apply to medical expenses, which are automatically covered, but normally additional services such as baggage, accident and liability insurance are included.

Price of travel insurance

Several factors affect the price of travel insurance. The main ones include:

• Destination: travel insurance is usually more expensive for travel to countries with higher healthcare costs (e.g. USA, Canada) or to areas with higher risks (e.g. countries with political instability or dangerous diseases).
• Length of trip: the cost of insurance also naturally increases with the length of the trip.
• Age of the insured: Older travellers usually pay higher premiums because they are at higher risk of health problems.
• Health: If the insured has pre-existing medical conditions, this may increase the cost of insurance or special cover may be required.
• Type and scope of insurance: Comprehensive insurance with higher coverage limits and more additional services will be more expensive than basic insurance.
• Activities during travel: Engaging in risky sports and activities (e.g. skiing, diving, climbing) increases the cost of insurance because these activities carry a higher risk of injury.

How to choose travel insurance abroad

Choosing and taking out travel insurance couldn’t be easier. In fact, nowadays most insurance companies already offer insurance online. You can therefore arrange it, for example, when you go on holiday. However, the choice is wide and many people are not sure what to choose. That’s why we’ve compiled a list of basic factors you should consider when making your choice:

• Specifics of the trip: is it a business trip, a holiday, a study trip or an adventure trip? Where are you travelling to? Some areas may require special coverage. Are you planning a short trip or a long stay?
• Scope of coverage: Check if the insurance covers acute medical treatment, hospitalization, transfer to home country, etc. Also assess whether it is worthwhile to take out insurance for other unexpected situations, such as loss of luggage or trip cancellation.
• Other specific requirements Make sure they are covered. If you’re travelling with your dog, it’s worth insuring him too. The veterinary costs can be staggering, as can the damage your pet can cause.
• Benefitlimits. Make sure these limits are sufficient for the destination and your needs.
• Exclusions and limitations: study carefully what is not covered (e.g. pre-existing medical conditions, certain activities or specific destinations).
• Assistance services: Find out exactly what assistance services are included (24/7 hotline, help with lost documents, legal advice, remote medical consultation, etc.).
• Price of insurance: Compare the prices of different insurance companies, but don’t forget to compare the coverage and conditions. Avoid the cheapest options if they do not provide sufficient cover. In this case, it might not really pay off and the difference is often only a few tens of crowns.
• Readreviews and other travellers’ experiences with the insurance company. Check how easy it is to make a claim with a particular insurance company.

Summary

Travel insurance is a must-have for any traveler who wants peace of mind and security when traveling. It covers unexpected medical expenses, emergency assistance and many other unforeseen situations that could otherwise cost you dearly. When choosing insurance, it’s important to consider the specifics of your trip, the scope of coverage, benefit limits and insurance company reviews. Remember that even a small investment in insurance can mean huge savings in the event of the unexpected.