We all like to bag a bargain and save a few pennies, but while that might be great when you are shopping in the sales, the same principle doesn’t necessarily apply when it comes to getting travel insurance. We go through the common things that are covered and excluded from budget policies so you can see what your payment covers, and what it might cost you for the things it doesn’t.
What is budget travel insurance?
It’s likely the free travel insurance you got with your bank account or credit card, or a generic policy that asks very few questions. Ultimately it will have lower cover limits, higher excesses, and fewer inclusions. It will cover the basics that you will find in a more expensive policy but won’t be there for the heavy lifting if something goes really wrong, or is costly to rectify.
You can find out our thoughts about why Free Travel Insurance Doesn’t Always Pay Out, and in the essence of fairness, it is worth noting that Budget policies are better than NO insurance, but realistically only for solo travellers with no existing health conditions on short, low-risk trips without valuable belongings. More on that below!
What’s limited or not included in budget travel insurance policies?
Things like cover for pre-existing health conditions, individual valuable items, duration of flight disruption, repatriation, provisions for spouse or children, medical treatment, rescue, reasons for cancellation… basically anything beyond the usual, and things that are costly to cover.
Is budget travel insurance ok if I have a GHIC?
A Global Health Insurance Card, which has replaced the EHIC (European health insurance Card) only grants the traveller access to the same level of medical treatment for the same cost as it does locals. If the local community has to pay for crutches, medicines, hospital fees or any kind of add on, you will too. Comprehensive travel insurance covers the things a GHIC can’t.
What could that mean in the real world?
Scenario: Broken ankle in Mallorca
A traveller slips on a wet poolside and fractures their ankle. The hotel arranges a taxi to a nearby private clinic, which is common in tourist resorts. The GHIC isn’t accepted by this particular medical facility, but the traveller had no idea until they were presented with the bill. Here’s what could have been on the bill:
- A&E assessment, X-rays, specialist consultation – could cost as much as £1,000
- Surgery and a two-night hospital stay – in excess of £4,000
- Return flight with extra seats for raised leg – additional £500 – £1,000
- Possible total: £5,000 – £10,000
Budget policies may pay out here, minus the excess, but there would likely be a cap in the medical limit or the repatriation costs.
A comprehensive policy could cover it all, and with worldwideinsure.com you would have access to a 24/7 multilingual helpline to ensure that you understood everything about your medical care and what was covered.
Scenario: Heart attack in the Costa del Sol
An older traveller has a heart attack and is taken by ambulance to a state hospital. The GHIC works as it should, and emergency treatment is provided on the same terms as for Spanish residents. Even so, there are additional expenses that could only be covered by Comprehensive Travel Insurance.
- Medically escorted flight home – in the region of £3,000 – £6,000
- Air ambulance, if a scheduled flight isn’t safe – £10,000, possibly even over £20,000
- Extra nights in hotel for spouse – even a budget hotel could over £1,500 for a week
- Re-booked flights for spouse – £250 – £600
Again, a comprehensive policy could cover it all, bring peace of mind with the 24/7 helpline, and take the guess-work out of an already stressful situation.
When should you budget more for travel insurance?
For starters, anyone with a pre-existing health condition should get comprehensive travel insurance. It can cover a range of things including:
Also anyone travelling with their family should have adequate cover, as there is little that is more distressing than coping with an ill or injured family member in a foreign country.
To add to that, getting travel insurance is a matter of understanding risk:
- The more you travel, the higher the risk of something going wrong when you are travelling.
- The longer your trip, the higher the risk that something will go wrong during the trip.
- The further away your destination, the higher the risk of mishap.
- The more remote your destination, the higher the risk of mishaps being costly.
- The more adventurous your trip, the higher the risk of injury.
You get the picture? That said, you could be the healthiest person on the plant on a short trip to France and something costly could go wrong.
Long story short, with travel insurance you get what you pay for, and if the price seems too good to be true for your personal needs and the type of trips you have planned, it likely won’t provide adequate cover.
Speak to the people in the know about Travel Insurance
Call us on 01892833338 or take a look at our travel insurance policies online.