Travel insurance: Should you skip it?

May 2, 2014

Should you really skimp out on travel insurance? How useful can it be anyway?

 

By Michelle Brohier

We all wish travelling was an easy process, but not only do we have to look out for the many costs and regulations involved in it, there’s always that possibility of something going terribly wrong no matter how well we have planned and prepared for it.

Still, with the desire to save costs and keep that little bit of extra money you could use as part of your travel expenses, many of us tend to opt out of travel insurance.

But as much as we believe in saving money; should you really skimp out on travel insurance? How useful can it be anyway?

The low-down on travel insurance
In the same manner that health insurance gives you coverage in the possible moment you need hospitalisation and such, travel insurance gives you a protection plan when something goes wrong with your travels.

They can cover the bad circumstances you may get into such as a personal accident, medical expenses, loss of luggage and personal effects or even travel documents, baggage and travel delay, travel cancellation, missing departure and more.

Each policy varies widely, depending on the kind of travel insurance you opt for.

There are three ways you can get travel insurance, which is either through a travel agent, provided by the airlines and even banks.

Most insurance companies provide at least one travel insurance, but if you travel at least once a year you can consider using the airlines travel insurance instead.

 Travel insurances provided by airline companies and banks are usually underwritten by insurance companies that are being re-sold.

These travel insurance provide coverage and charge you depending on where you’re going (domestic, Asia or worldwide) and how frequently you travel.

What are the costs like?
Many of us may be more familiar with the travel insurance costs when you buy a return air ticket from a particular low cost carrier airline, with it being about RM18 to RM34, depending on whether your flight is domestic or regional.

It seems reasonable enough, but if you’re a frequent traveller, the cost will add up quite a bit!

Especially since you can actually find cheaper travel insurances that will cater to your travel itinerary a lot better.

You can get travel insurance for as low as RM11 for domestic travel to RM25 worldwide.

The more days you plan to travel, the higher the cost will be but if you’re travelling once a year this can be worth it.

If you plan to travel frequently, especially worldwide, the costs range between RM255 to RM638, depending on the kind of coverage you want as well as the insurance company you’ve chosen.

If you think that sounds expensive, consider the fact that if you opt for travel insurance via an airline for RM34, the cost can come up to RM456 a year.

So for frequent travellers, it’s best to opt for an annual plan rather than constantly choosing the airline insurance.

 In the end, the cost of your travel insurance depends on how much research you’re willing to make to find the best price and coverage for you.

Should you still buy travel insurance?
Okay, so the likeliness of things going very wrong can seem small if you believe you’ve made the right choices with your airlines, hotels, location and more.

But like a lot of things in life, there are possibilities of things going wrong no matter what you do and rather than live in regret, it’s best to take precaution.

If cost is a problem, do some shopping to see which coverage works for you with a cost that is both reasonable and most importantly, affordable.

Better that than having to pay a lot of accidents, theft or even loss of items.

Whilst incidences are few and far between – you’ll certainly be glad you opted for it when you find the airline has left your bag in another country.

This was brought you by Michelle Brohier from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.