Travel Insurance for Backpackers

One could say that the days of “simple” travel are long gone. We have to admit that the travel industry is capable of giving us some unpleasant surprises with cancellations, delays, and other “unforeseen” circumstances. Or we can just get sick during our trip and miss the best part of it. Whatever the case is, there are some options available that can be of benefit in case some of these scenarios become part of our trip.

The common question is, do I need insurance?

First, you should look among the insurance policies you currently have to see what they cover. Some medical insurances cover medical emergencies overseas while others don’t. Some homeowner’s policies cover baggage loss and some credit cards offer some type of travel insurance that could cover, baggage loss, cancellations, and medical expenses among other things.

One of the factors that will influence your decision of taking insurance is the amount of money you are putting into your trip. Are your airline tickets, tours, or cruise expensive and non-refundable? If the answer is yes, then getting some type of insurance (like cancellation insurance) would be a wise decision.

Types of Insurance

You should know that there are various types of insurance. When deciding on what insurance you should take, please, read the fine prints before purchasing it to make sure what is ACTUALLY covered. These are the two most common insurances: Travel Insurance and International Medical Insurance.

Travel Insurance - These plans typically reimburse your non-refundable travel expenses in case of any unexpected “covered crisis” occurs before your trip causing it to be delayed, interrupted, or canceled. See the emphasis on “covered crisis”; not all apparent crises are covered by all insurances. Make sure which ones are actually covered by yours and for how much. Also, pay attention that is a difference between cancellation by the tour or airline company and cancellation by the traveler. Verify that you are covered for both. A few things normally covered in a regular Travel Insurance:

- Travel Documents Protection: helps you replace you important travel documents, like passport, when they are lost or stolen.

- Trip Cancellation/Interruption Insurance: Covers you for any unforeseen event that causes you to cancel your trip. Among the possible covered events or crises are illness, injury, death of traveler or immediate member of the insured traveler, war, civil disturbance, loss of job, change in financial status, and others.

Make sure that your insurance covers you at your destination. Some places are excluded since they are prone to civil and political unrest.

- Baggage Loss/Delay Insurance: Typically covers you with a cash payment if your bag is delayed, lost, or stolen.

- Flight Cancellation/Delay Insurance: Typically covers the expenses of accommodation, meals, and new travel arrangements once your flight has been delayed for a certain amount of hours (normally after 6 to 12 hours).

International Medical Insurance - Typically reimburses you for emergency medical expenses incurred when traveling or living in a foreign country.

- Guarantee of Hospital Admission: When hospitalization is necessary, they guarantee that medical service will be provided to you. Some even provide direct payment to the hospital.

- Medical Expenses: Could cover expenses incurred in case of emergency; like surgery and extended hospital stay (up to $5 million in some cases).

- Outpatient Medical Services: When hospitalization is not necessary, they reimburse you your covered expenses after you file a form.

- Medical consultation by phone: Some insurance provide you with a phone number to consult a physician while you are overseas. They even monitor you periodically via phone.

- Emergency Medical Evacuation: this insurance covers the costs of transportation if a qualified physician determines you must be evacuated for medical treatment for the nearest medical facility due to physical injury or sickness. This insurance is highly recommended if you are traveling by cruise or visiting remote areas.

- Repatriation of Remains: They cover reasonable expenses for repatriation of the insured’s remains in case of accidental death.

- Cash Payment to beneficiary: Some insurances pay the beneficiary in case of accidental death, loss of sight, or loss of limb.

Keep in mind that in nearly all cases you will have to pay upfront any expense incurred during your medical emergency. Then the insurance company will reimburse your claims according to what is covered.

Also, before purchasing a medical insurance, check if your current medical insurance covers you when traveling overseas. If traveling to a destination with socialized medical care, check if you could be covered in case of medical emergency. In many cases, you will not have to pay anything.

When you’re looking for a good insurance you should compare between different travel insurances and see which one of those fits best your needs. Here are a few things you should consider and compare in order to establish an informed decision at the time of buying.

Price

Price is obviously high on the list of consideration on every budget traveler. When comparing backpackers travel insurance, don’t focus only on the lowest price. Compare the price alongside with what’s covered.

Extent of Coverage

Read even the small prints to know exactly what is covered, what not, how much will it cover, and under what circumstances. Know what of your personal items it covers. Will it cover if you accidentally break your camera?

Most travel insurance policies wont cover theft if caused by your negligence or by leaving things “unattended”.

Medical Coverage

Does it cover pre-existing conditions? Most travel insurances don’t cover them.

What are the maximum hospital emergencies coverage limits? Hospital costs for emergencies are extremely expensive in most countries. Know the maximum coverage limits and know who disburses the money to the hospital during the emergency; you (to be later reimbursed by the travel insurance), or if the insurance cover it initially.

Activities Covered

Not all policies are designed the same way. What sort of traveler are you? Do you like extreme sports? Are you visiting dangerous countries? Are you doing a remote expedition?

Cancellation

Make sure that your policy has cancellation insurance. If it does, what types of cancellations does it cover? Does it cover if you have to suddenly cancel due to work? Or if a family member dies or gets sick? Or if you get sick? If it does cover, what does it cover?

Countries Covered

Today, most travel insurance for backpackers do provide coverage for most countries in the world. But, there are a few countries that are not covered for different reasons, whether it’s due to political unrest, current danger towards foreign visitors, or for other reasons. Always make sure you verify the list of countries covered by the policy against the list of countries your visiting.

In addition to these previously mentioned points, there are many other conditions you should consider when comparing travel insurance for backpackers. But, just looking at these will help you significantly in making an informed decision.

For more information, sites like Travel Insurance for Backpackers provide enough information on various travel insurances to guide you to make an intelligent decision when you decide to purchase your Backpackers Travel Insurance.