How to compare travel insurance

When it comes to something as important as travel insurance, you should be confident that you’re protected by the level of cover you need. But not all travel insurance is made equal, and finding a policy to suit you can sometimes be a minefield of confusing jargon and lengthy T&Cs.

This guide to comparing travel insurance will outline the key things to look for in a policy, dive into how our insurance stacks up, and give you some tips on how to find the right cover for you.

What is travel insurance?

Travel insurance is a contract between you and an insurance provider. The travel insurance company agrees to compensate you for the cost of unexpected events (e.g. if your luggage is lost overseas). To receive this cover, you must adhere to the terms and conditions of your policy (e.g. not leaving your luggage unattended).

Travel insurers provide cover for many types of unexpected events, like medical emergencies, natural disasters and lost luggage. The amount of compensation they agree to provide is usually different for each of these types of events, and is often called a ‘benefit limit’.

Why buy travel insurance?

From slips and trips to lost luggage, there’s a lot that can go wrong when travelling. These unexpected events can end up costing you lots of money, especially if your destination is overseas and has expensive medical care, or you’re forced to extend your holiday before you can safely return home.

For example, some of our highest claims have come from unlucky travellers who have required emergency medical care, with many of these medical bills reaching over $100,000. In fact, our highest claim of 2017 totalled $682,000!

Travel insurance can give you the peace of mind that you’re protected if the unexpected happens.

Things covered by travel insurance

Different travel insurance policies offer different benefits. For example, our travel insurance can cover you for things like:

• Medical and evacuation
• Cancelling or changing your journey before you leave
• Lost or stolen items
• Bank cards, passport and travel documents
• Personal accident
• Personal liability
• Rental vehicle excess
• Cash allowance while in hospital
• Emergency dental treatment
• Overseas funeral expenses
• Changes to your journey once you have left

How to compare travel insurance benefits

When you’re comparing travel insurance policies, it’s important to compare the benefit limits, sub-limits, excess and terms outlined in each benefit type. You can find this information in the insurer's policy document or product disclosure statement. This will help you to learn:

• How much you’re covered for under that benefit category, like medical care
• If there’s a fee (known as an ‘excess’) involved should you need to make a claim
• If any exclusions apply to that cover
• If any sub-limits apply to that cover.

What isn’t covered by travel insurance?

When comparing travel insurance policies, it’s important to take note of any exclusions to your cover. Travel insurers usually outline a list of general exclusions in their policy documents.

For example, amongst other exclusions, you may not be covered if you’re:

• Breaking the law
• Under the influence of alcohol or drugs
• Gambling
• Hitchhiking

Travel insurance for activities

Comparing different types of travel insurers

During your research, you may come across different types of organisations that sell travel insurance. Let’s look at some of the most common types of travel insurance providers and some things to consider for each.

1. Direct travel insurance

Direct travel insurers, like us, provide travel insurance directly to customers without any middlemen. That means you don’t have to pay extra for a travel agent or broker’s fee, which may save you money.

2. Credit card travel insurance

Some credit cards may offer ‘complimentary’ travel insurance. However, it’s always important to check the benefits, cover limits and exclusions, so you have a full understanding of what you are and aren’t covered for.

You may be required to activate your travel insurance before you travel to ensure you’re covered. There may also be other rules that you have to follow to ensure you are covered, such as booking all your travel on that credit card.

3. Through travel agents

Travel agents may also offer to organise your travel insurance by dealing with an insurer themselves. This could cost you more, as some agents charge a fee for their service.

As insurance through a travel agent is usually purchased on the spot, alongside your travel plans, it removes the option to shop around for the most appropriate and competitive insurance for your needs.

4. Through airlines

Some airlines offer a travel insurance product, which you can add to your flight booking. As with any provider, pay special attention to the benefits they offer, their record of customer service and whether they provide 24/7 emergency assistance.

How to choose a travel insurer

When comparing travel insurance, as well as looking at cover benefits, it’s also good to look at whether they have been recognised by any industry awards and whether they have positive customer reviews. These things may give you a better picture of the level of service you can expect. When comparing travel insurers, ask yourself if they:

• Have great customer reviews
• Have won industry awards: we've won several industry awards through the years.
• Underwrite their own policies: we underwrite our own insurance, so we’re not reselling another company’s product.
• Have 24/7 emergency assistance: our 24/7 emergency assistance means we're just a phone call away if you need us.

If you’d like any more information on which SCTI policy is the right choice for your next adventure overseas, contact us at info@scti.co.nz.


*Data correct as of 29 November 2018