Why do I need travel insurance?

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Why do I need travel insurance?

If there’s one thing we believe in at Map My Plan, it’s making sure you have adequate insurance in place to protect yourself from financial ruin.

So yes, you do need travel insurance. An accident overseas that requires medical treatment can run a bill into the hundreds of thousands very quickly – and create financial hardship for you.

Here’s five very good reasons you need travel insurance:

  1. Medical emergencies and evacuation: This is the biggy. Reports claim hospital stays in the US cost USD$10,000 a day, and an emergency evacuation could cost you USD$100,000.
  2. Trip cancellation: Provides a payout in case you’re unable to go on your planned trip due to an illness, accident or death of a loved one.
  3. Personal effects: Covers loss of baggage and personal belongings such as phones, laptops and cameras.
  4. Personal liability: If you’re involved in an accident (excluding motor vehicle and air and water craft accidents) and found to be responsible for damage to someone else’s property, this covers your liability and legal expenses.
  5. Trip interruption: Some policies provide cover if your trip is cut short and you have to resume at a later date, under certain conditions.

As with all insurance policies, its imperative you read the product disclosure statement (PDS - it outlines the detail of what is covered) to make sure you’re covered for what you think you’re covered for, to an adequate level. Read the ‘specific exclusions’ and ‘general exclusions’ sections in full. The devil is in the detail.

You must also make sure you know any conditions you need to satisfy when making certain claims. For instance, when renting a car overseas, some policies will only cover your excess if you have purchased vehicle insurance through the rental company.

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