Insurers sell different policy options, such as comprehensive or budget cover. Some premium credit cards also come with built-in travel insurance. So which should you choose?
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Most insurers offer comprehensive and budget travel insurance. Comprehensive policies are more expensive, but they have higher cover limits and provide cover in circumstances where budget policies don’t. Here’s how one insurer’s comprehensive policy compares with its basic policy.
|Benefits||Maximum cover limit: Comprehensive||Maximum cover limit: Budget|
|Your health if you’re injured or fall sick|
|Your belongings if they’re lost, stolen or damaged|
|Luggage – total||$25,000||$2500|
|Luggage – per item||$1500||$500|
|Electronic equipment (e.g. cameras)||$2500||$500|
|Your bookings if you have to cancel or change your trip|
|Loss of deposit (e.g. non-refundable flights)||Unlimited||$5000|
|Additional expenses (e.g. if you need to return home)||Unlimited||$5000|
|Your liability if you accidentally cause damage|
|Personal liability||$2.5 million||$500,000|
|Rental vehicle excess||$6000||Nil|
If you can only afford a budget policy, make sure it covers medical expenses and personal liability (in case you accidentally injure someone or damage something).
Most travellers heading overseas will be well served by a single-trip policy. But if you’ve got multiple trips planned in the year ahead, you may save money with a multi-trip policy. These provide cover for unlimited trips within a 12-month period. Drawbacks? Each trip is restricted to a maximum period – for instance, 60 days.
Some premium credit cards (think gold or platinum) have built-in travel insurance. Credit card travel insurance has similar benefits and limitations to comprehensive policies. There are additional fish-hooks to watch for: