Most people know the value of international travel insurance. But did you know it is just as important to have domestic cover when travelling around New Zealand?
What does it cover?
When it comes to protecting your trip, your travel insurance needs to cover you in more than one way. On the same trip, you could miss your flight, lose your bag or sprain your ankle. And then there is Covid...
Most insurances offer basic and more comprehensive plans that allow you to adjust the cover to your needs and include the things that are important to you.
Here’s an overview of what can be included:
The important stuff:
Trip cancellation and amendment costs: If due to circumstances outside of your control you have to cancel or amend your journey.
Travel delays: Additional accommodation and travel expenses as a result of certain events. When your flight is delayed, you miss your tour and have to travel elsewhere to meet your group.
Personal liability: If you become liable to pay compensation for damaging someone else’s property or causing the injury or death of someone else. Damage to E-bikes on our cycle trips can become expensive - check with your contents insurance if your travel insurance doesn't cover this.
Luggage and travel documents: Lost, stolen or damaged luggage or personal effects.
Medical expenses: If you suffer an unexpected injury, sickness, disease or require emergency dental treatment due to something that happened on your trip.
Loss of income: If due to an injury sustained during your journey, you are unable to return to your work.
Accidental death: If you die due to an injury sustained during your journey.
What does it cost?
The cost of travel insurance varies for individual travellers based on the options you select and your personal situation. Defining factors are
Age: The older you are, the higher the policy cost may be. However, some insurances offer special rates for seniors.
Level of coverage: You can opt for cheaper basic travel insurance as well as comprehensive, more expensive plans to cater to your individual needs.
Length of trip/s: A single trip policy is generally cheaper than a multi-trip policy and shorter trips often pose less risk of medical incidents and travel interruptions, resulting in lower costs. For frequent travellers and if you are planning multiple trips a year, annual or multi-trip policies can save you money while covering you for multiple short term trips.
Excess: A lower excess amount per claim usually increases the policy cost.
Existing medical conditions: Your policy will increase if your health and medical history indicate an increased risk of possible medical treatment requirements while travelling.
While a cheaper policy cost upfront may seem appealing, always read the Policy Wording to ensure your needs are adequately covered should an incident occur. Be sure to take into account the cost of your excess when looking at the cover limits, as it’s easy to get caught out.
Be aware – What might not be covered
Unfortunately, travel insurance can’t cover absolutely everything and there are situations you likely won’t be covered for.
Simply changing your mind prior to your trip may not be sufficient for a successful claim regarding cancellation costs.
If medical conditions aren’t disclosed or covered by the policy at the time of purchase, exclusions may apply to coverage related to those conditions.
You must take care of your belongings as you would at home – if your luggage is stolen while unattended, your insurance won’t pay.
Claims arising from reckless behaviour, excessive drinking or taking recreational drugs will likely be rejected.
Check what sports and activities are covered under your policy as certain high-risk activities might be excluded.
Travelling to specific regions against the advice of the government or your insurer, for example regarding lockdowns, security threats or extreme weather events, may result in unsuccessful claims because the events are no longer unforeseeable circumstances.
You won't be covered if boarding of transport is denied because of a failure to get the documents necessary for the journey, such as a COVID-19 vaccination history or a negative COVID-19 test.
Many travel insurance companies now offer some cover for events relating to Covid-19. As this is subject to change, we recommend you compare the details of several providers before purchase.
This highlights the importance to read the Policy Wording before purchasing to avoid becoming frustrated when claims are unsuccessful. There you will find the details of what’s included and excluded in your insurance.