If you’re sick or injured
If you need a medivac
If you need to cancel your trip
If an unexpected event messes with your plans
If your important documents are lost or stolen
If your luggage doesn’t make it
If you have to return home early
If you have an accident in your rental car
Your credit cards are lost or stolen
Someone sues you
Accidental death
You suffer a total permanent disability
You go skiing or snowboarding
Had a few drinks? Jumped on a moped after a few drinks and ended up hitting a ditch in downtown Kuta? Yep, you’re not covered. Insurers do not pay claims that arise if you were under the influence of drugs or alcohol.
Renting a motorcycle or moped? You’re only covered if you have a valid driver’s licence as required by your home country, ie New Zealand; you have a valid driver’s license as required by the country you’re visiting for the class of moped or motorbike you’re riding, and wear a helmet. Also, the moped’s engine needs to be the capacity specified by the insurer, usually under 50cc.
Hang-gliding or jumping out of a plane? Not all activities are automatically covered. Each insurer has a list of high-risk pursuits that it excludes from cover, which are specified in the PDS. Find out what these are and if you need to purchase additional cover.
Lost an expensive item? Policies have limits applied to what can be paid for an item, which may not measure up to what it’s worth. Consider getting specified cover to protect expensive items.
Had to pay more once you returned home? You’re only covered for expenses incurred while on your trip overseas, not once you return home to New Zealand. For example, Will was surprised to discover his policy did not cover physiotherapist and specialist appointments after he returned to Australia.
Ended up in a war zone or a riot? Very few insurers cover claims that are the result of you travelling to a country under a travel advisory issued by MFAT or other warnings issued by the government or mass media. These warnings may include strikes; riots; bad weather; civil unrest; contagious diseases; epidemics; pandemics, or threats of epidemics or pandemics. Claims that arise when you’re in a country under a do-not-travel warning are not covered.
Left your bag in the back of the taxi? Most insurers do not cover theft if you did not take reasonable care to protect your belongings. Insurers do not cover theft of expensive items that have been left unattended.
Final stages of pregnancy? Typically, insurers exclude cover for complications that arise past the 26th week of pregnancy, although the specifics of cover do vary from one insurer to the next. Some insurers only provide cover for up to 23 weeks while others may cover up to 32 weeks. Always check the policy’s PDS before purchasing.
Waited too long before contacting your insurer or making a claim? Most insurers require you to notify them of any event leading to a claim within a specific period, some as quickly as 24 hours after the event. Find out what this period is and the maximum time following your journey that you can lodge a claim (usually about 30 days).- Tell the truth
It’s really not worth leaving out details of an old medical condition or an activity you might be doing to save a few extra dollars. Insurance companies take the time to ensure your claim is genuine and that you were truthful at the time of application.
- Read the important stuff
You might not read ten different product disclosure statements cover to cover, but at the very least read through the exclusions and cover benefits section, so you know what is and isn’t covered. It’s also worth checking out the claims section, so you know what you need to provide and who to contact in the event of a claim.
- Know the excess you will be charged
Excess charges can vary significantly between insurers and will generally range between $50 and $250. You are charged an excess for each claim you make under the policy.
- Want to avoid the excess altogether?
Specific policies may offer an excess buyout, commonly known as an excess eliminator, which gives you the opportunity of paying a flat fee when you purchase the policy, so you no longer have to pay an excess.
- Know what will be paid for the loss of valuable items
Most policies have a sub-limit for individual items, such as $500 per item. If you are taking out additional cover for expensive items, make sure you know the maximum amount your insurer pays for multiple items in the event of a claim.
- Keep an eye out for discounts
Competition between insurers for your business means there are some chances to lock down great savings and bonus gifts.
