Do I need Travel Insurance?

Many of us consider going away overseas whether it be for a holiday or to work. There are many things to consider and one of these things is travel insurance.

Is Travel Insurance really necessary or can you travel without it?

To be frank there is no law that says you have to have travel insurance however you do take a big risk travelling without it. For example lost luggage or cancellation of flight can make a holiday memorable for all the wrong reasons. And of course you can always fall sick whilst your away and falling sick can be quite a big expense for you if you consider the costs of say having to be flown home for surgery or medical treatment. If you take precaution from the start and take out travel insurance it just means that you can relax more and be covered.

Many companies provide Travel Insurance and there are a lot of cheap deals out there?

There certainly are cheap deals and not many people know this but a lot of banks offer a credit card that provides Travel insurance. The way it works is that you purchase the tickets on your credit card so that the total cost or 75 percent of the cost of the ticket is through your card and automatically you are approved for travel insurance. The downside to this is the credit card fee you pay every year can be quite high. I think its $100 with Westpac gold card.
What’s important is that you actually do your research and check out what really is a good deal for you. You can do your research on the internet and read what other people have to say about the travel insurance company, compare the policies on offer and prices.

What about people with Pre-Existing Medical Problems?

Some policies don’t cover pre-existing medical conditions like World Nomads for instance, so if you do have a medical condition check your policy to make sure it actually covers your pre-existing medical condition.

What about things that cause inconvenience to you such as lost or stolen luggage?

This is a pretty common scenario and you’ll find most policies will offer cover for that under personal baggage claim. what is imperative is that your most expensive items, such as your laptop, jewellery, camera, that you take with you. Therefore it is advised that you find out the level of cover that you have on your policy for those items incase you have to take out extra cover. Most importantly ALWAYS read the fine print especially looking at what the actual criteria is around the travel insurance paying out.

Claims Paying Ability

Insurance Companies (Ratings & Inspections) Act 1994.

Does your insurance company have the financial strength to be able to pay out on any claims you might make? That’s the question which big ratings firms like Standard & Poor’s or AM Best ask. Each of the six travel insurance companies reviewed here have been given a letter rating shown in the table above.
The rating scale is:
AAA  Extremely Strong   BB  Marginal
AA Very Strong               B  Weak
A Strong                         CCC  Very Weak
BBB  Good                       CC Extremely Weak
                                       R  Regulatory Action
The ratings from ‘A’ to ‘B’ may be modified by the addition of a plus or minus sign to show relative standing within the major categories.

AA state that emergency assistance is available 24 hours a day so it would appear that filing a claim would be practically easy. You can make a claim by requesting a claim form or print out a Claim Form from their website. It’s important that you submit relevant documentation with your claim as this will reduce delays with your claim, e.g. doctors certificate, hospital reports, booking confirmation, documents for any items lost, stolen or damaged.

Another benefit of using AA is the fact that Recreational sports are covered free of charge which includes winter sports, bungee jumping, white water rafting, however it’s important to note that AA will not cover you if you are partaking in a football tournament which sounds a bit crazy.

Good Points

• Quick easy web site
• Very fast to get a quote
• No problem to Claim
• Very Helpful
• Discount if member of AA recovery etc.
• Good cover – Annuals in particular offer great value.
• Unlimited Medical Cover
• Loss of Deposits, Cancellation & Curtailment is unlimited
• Unlimited Travel Delay or Missed Connection
• Free cover for depended children under 21 years
• Recreational sports covered free of charge including leisure skiing, snowboarding, bungee jump,  white water rafting etc.

Bad Points

• Expensive

Travel Insurance Types

Leisure Travel – Travel undertaken for pleasure, often used to specify a trip of sevens days or longer, regardless of its purpose.
Business Travel

Note: it is worth noting that you are able to take leisure trips whilst on the business policy, provided that the policy has been purchased for mainly business purposes.

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Policy Benefits

Listed below are some of the main features and benefits I picked up from the AA Travel Insurance website:

• 24-hour emergency assistance / 7 days a week
• Medical expenses up to £10 million pounds
• Cancellation cover up to £5,000
• Discounts for couples & families
• Discounts for those people that don’t require baggage or money cover.
• Special rates for single-parent families
• Kids go free*
• Delayed departure up to £100
• 14 day money back guarantee*
• Save £££s Online
• Optional cover for weddings, golf or winter sports
• Cover for frequent flyer points or equivalent airfare.

Contacts

Visit AA Travel Insurance for a quote.

Customer Helpline: 0845 092 0555
Customer Services E-mail: enquiries@aa-travelinsurance.com
Sales: 0845 092 0555

24-hour Emergency Assistance
From Worldwide Collect: 64 9 4866868
From Australia Toll Free: 1800 554 114
From UK Toll Free: 0500 893 893
From USA Toll Free: 1800 326 1543
From Within New Zealand: 64 9 4866868 / 0800 486 686

If you wish to make a Claim: 0870 850 5025
USA Medical Claims Emergency Hotline: 1800 326 1543
Complaints: 0870 850 5025

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Things you should know

If you take a laptop with you and you have it lost or stolen and need to claim, you can only value it for what it’s worth now and not what it cost you when you purchased it.
AA will only pay the current day value.

You are covered for working overseas including manual work as long as it is not heavy manual or hazardous work. (n that whilst working, Section 3 Accidental death and Permanent Disablement & Section 6 Personal Liability are excluded). There is no cover for loss of wages in New Zealand except under the Business policy.

With regards to making a claim, AA office should be advised of a claim within 30 days of the loss.

If you require cover for any pre-Existing medical condition you will be required to complete the self –assessment form to check if cover is automatically provided under your policy option. If its not provided and you are under 80 years of age you can contact the medical hotline on toll free 0800 886 620 to apply for written acceptance of your condition(s)

For more FAQ visit the AA Travel Insurance website

How to make a claim

You can make a claim by requesting a claim form or print out a Claim Form from their website.
For all claims, supporting documentation is required to prove your claim, such as original copies of receipts, doctor’s papers, airline reports, proof of ownership.

Testimonials

I and my husband had Annual Travel Insurance. and were due to go away for a weekend trip to Bulgaria. We both fell ill, couldn’t go away and after sending AA our doctor’s paper, we were compensated for the full amount of the trip. I found AA to be very helpful with no problems to claim. You also get a discount if you are a member of AA recovery etc. The bad point for me would be it was expensive.

The website is easy to use with all the information you need. Details of all AA travel insurance policies and how to claim are available at your fingertips. What’s more, they can provide you with a quote online in seconds and you can then buy online or ask them to email the quote to you so you can come back to it later. You can also give them a call to buy over the phone.

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