Expert tips on travel insurance

FROM annual and family policies to buying online, experts reveal their travel insurance tips to Donna Kramer.

Make sure you purchase travel insurance before your trip. Picture: Supplied

WHEN on holiday it's safe to say that you should embrace the unexpected, after all it's often that hidden art gallery, rural cafe or last-minute change in plans that delivers the most memorable holiday moments.

On the flip side, it's the unexpected such as lost luggage and flight cancellations that can turn a dream holiday on its head and why most of us lock in travel insurance before we pack our bags.

Before our last family holiday I contacted a few different insurance companies including my local travel agent, an insurance website, my credit card provider and health insurance company for quotes.

The wide range of responses shocked me.

While all four policies offered the same level of cover, the price varied greatly, with the most expensive being triple the price of the cheapest.

When it comes to buying travel insurance it truly does pay to shop around to find the best policy to suit your needs, so I asked a range of experts to offer advice on what to look out for and how to save when purchasing travel insurance.

1. ANNUAL POLICIES

If you are a frequent traveller, look into an Annual Multi-Trip policy that offers year-round cover for unlimited trips anywhere in the world. These annual policies may work out cheaper and you'll save time on arranging individual insurance policies for each trip.

While an annual policy will save you time, be sure to read the fine print.

Allianz Global Assistance recommends you check the minimum distance you need to travel away from home. "In order to be covered it usually has to be a minimum of 250km away from your place of residence and there are maximum periods of cover for any one journey - typically 37 days for leisure travel and 90 days for business travel," says an Allianz Global Assistance spokesperson.

"Families can also get more mileage out of an annual policy by checking if spouses and dependent children or grandchildren under 21 are covered, as they often are at no extra cost."

2. FAMILIES

Cover-More's Zac Brookes says families can save up front by selecting their excess level.

"By choosing different excess levels, families can purchase a cheaper option, which has higher excess fees if and when they make a claim," he says.

"Families should also consider a travel insurance policy that allows an unlimited number of children under the age of 21 to sit on the same policy as the adult. This means children will be covered at no extra cost under parents or grandparents policy."

Check your memberships

Dust off those membership and loyalty program cards in your wallet and give the providers a call. Many memberships offer discounts of up to 20 per cent on a range of affiliated services including travel insurance.

Lilith Bohler from CANSTAR, which compares domestic and international travel insurance star ratings and benefits each year as part of the Travel Insurance Awards for outstanding value, suggests giving your gold credit cards a closer examination.

"Many gold credit cards are now offering free travel insurance for you, your spouse and dependent children for up to four months of travel per year," Ms Bohler says.

"Many gold cards also come with other benefits for travellers such as extended warranty on purchases, lost luggage assistance, legal and medical referrals and commission-free travellers cheques. "Do your research, as some cards will require you to pay for flights and possibly other expenses on the card before you leave."

3. LOOK ONLINE

You may be able to avoid paying commissions and aged-based premiums by purchasing travel insurance online.

CHOICE head of campaigns Matt Levey offers the following advice on buying travel insurance from a website.

"Before buying travel insurance, check the website has an Australian Financial Services Licence with ASIC and make sure you take the time to understand the policy and what it insures. While cover is sometimes cheaper with online policies, make sure a lower price doesn't necessarily mean reduced cover," Mr Levey says.

"Check exclusions carefully, pay attention to official travel advice and review the Product Disclosure Statement. It's not just an extra piece of paper, it's your product."

4. ASK AN EXPERT

If you find a cheaper travel insurance policy, take it to your travel agent. They may be able to match the price and advise if the policy you have in mind is suitable for your travel plans.

Flight Centre's Colin Bowman says the most important thing is to ensure you have travel insurance that meets your needs.

"A cheap policy that fails to cover your trip is a waste of money. Ask your travel agent for advice; they are experienced travellers and will be able to help you find the travel insurance to suit your needs based on what you intend to do on your holiday," says Bowman.

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