Travel Insurance Explained 2019 (tips for your first trip)

Travel Insurance Explained 2019 (tips for your first trip)

Hi, and welcome back to the channel. If you’re new here, my name is Megan and I create videos
with actionable tips and hacks to help you make the most
of your next trip. Speaking of which, where are you going? Let me know in the comments down below. And I know that you are taking a trip, because I highly doubt
that you are watching this video for the sheer joy of learning
about travel insurance. Not a fun topic, but super important. Which is why, in today’s video, I’ll be giving you an overview
of what travel insurance is – and what it isn’t – as well as the four main types, so you know what to look for
and can make an informed decision while getting a policy for your next trip. (Music) Travel insurance is emergency care
for when things go unexpectedly wrong when you are traveling
outside of your home country. It is designed to be there for accidents, both health and nonhealth related, and unexpected events
that you honestly thought would never happen to you. You can be the most
careful person in the world and something unexpected can still happen. Travel insurance is not a substitute
for your health insurance back home, and it’s often not going to cover you
for any preexisting conditions or any routine checkups. So, if you need a physical
or you need to just go to the dentist to check if you have any cavities, you will not be covered
by your travel insurance. It’s meant for emergencies,
the unexpected things. In Thailand, earlier this year, a friend of mine was
scratched by a stray cat and ended up getting
three rounds of rabies shots. There are stray dogs and cats
all over Thailand. And yes, it was highly unlikely
that this particular cat had rabies, but the risk is not worth it. Once you start showing
any signs of rabies, even just a mild headache as a symptom, the disease has most likely progressed
to a point where it’s fatal, so it’s definitely not worth the risk
of not getting the rabies shots. In Thailand they weren’t that expensive;
he was reimbursed for them, but it wasn’t that big of a deal. If this had happened in the US, it could’ve been tens
of thousand dollars for that hospital stay and the exact same shots. Usually how it works is,
something unexpected happens, like you break your leg
or your baggage is lost, you pay for what you need
to pay upfront, out of pocket, and then you contact your insurance and they’ll reimburse you
for eligible expenses later on. By contact your insurance
I mean submit a claim. You usually submit a claim
on the insurance provider’s website. You’ll likely be asked
to describe, in detail, what happened and then what all
of your expenses were. You’ll also probably need to support
these expenses with receipts, so keep absolutely everything. And often also a report
from the authority involved. So, if you’re in a bus accident, you would need a report
from the bus company or, if you’re at the hospital,
you would need a report from the doctor. You’ll also need to provide them
with your bank details and this is just so, if you are approved – which hopefully you are – they’ll be able
to reimburse you those costs. the process can the lengthy and involve a lot of information
from you and from other people. You’ll also need to submit a new claim for each individual event
and each type of expense. Once you’ve submitted your claim
and all of the documents, you’ll receive notice of if your claim
was approved or declined. If it’s approved, it could take
weeks or even months to actually get the money reimbursed
back into your bank account, and how much money
you’re getting reimbursed is going to depend
on the policy that you choose. If you are declined, don’t take it as a final answer. They’ll usually give you a reason why, and it may just be because you
didn’t provide enough documentation. So, if you can go out,
get that documentation or find some way
to make their reason invalid and resubmit the claim;
you may be approved later on. So, never take a decline
as a final answer. Some insurance companies
will actually pay the hospital directly. So, this way you’re not having to pay
out of pocket and being reimbursed; they’re paying upfront. What you’ll need
to look for in your policy is something called
“The direct pay clause,” and this will tell you how they will go
about paying for your expenses. There area a few universal rules
when it comes to travel insurance and every company and every policy
is going to be a little bit different. They also use all of these
fancy words in your policy and I swear they’re trying to confuse you
by neglecting to you simple human terms. For example, “premium.” Why don’t you just say,
“What the insurance is going to cost you”? Or “deductible,” which is the amount
that you’ll have to pay upfront before they start covering your insurance. So, for example, if your deductible
for a medical expense is $250, you will be required to pay for any
of your medical expenses up to $250 and then they’ll start paying after that. So, if you go to the hospital
and it costs you $500, 250 of that is what you’ll need to pay before they start covering
any of the insurance. Not only is every policy
a little bit different depending on the company that you go with, but it’s also different
depending on who you are and where you are traveling. We could get the same policy
with the same company and end up paying different amounts
and have different coverage based on our age,
our country of residence, and where we are traveling to. There’s a lot of other factors too. A lot of factors. Read that policy. Now that you know travel insurance
is meant to cover you for emergency health and
nonhealth-related expenses on your trip, Let’s break it down into the four
main types of travel insurance that you’ll probably come across
while looking for a policy. The main types of travel insurance
that you’ll come across include emergency medical, emergency evacuation, trip interruption and trip cancellation, and then loss of baggage or gear. You can buy policies
that cover all of these areas, which are typically called
comprehensive plans and are going to cost a lot more, or you can also get policies
that are going to cover just specifics based on what you need. You may think these different categories
sound self-explanatory… I personally did,
I figured “Gear coverage. Okay, so they’ll insure my stuff.” But… what does that really mean? It wasn’t until I started traveling
and really thinking, “Wait a second. So, gear coverage. If I go swimming with my iPhone
in my pocket and I destroy it, does that mean
they’ll pay me back for it? Will they pay for the whole thing? Can I tell them it was an iPhone X
when really it was my iPhone 6… with a cracked screen? What if I’m planning a trip
with my boyfriend and then we’re fighting, does that count as trip cancellation and I can get reimbursed
and not take the trip?” When you start looking in the details, and actually applied to the trip
that you’re going on, you’ll realize these different areas
are not self-explanatory. So, what I’ll be doing next is breaking down
the four different categories, so I hope you’ll join me back here
for that one next week. In the mean time, definitely check out
one of these videos over here as they’ll also help you
prepare for your trip. Have a good one, happy travels, and I can’t wait to see you
back here again next week. Bye.

13 thoughts on “Travel Insurance Explained 2019 (tips for your first trip)

  1. Always great information and content.
    I always purchase travel insurance but I forgot about obtaining and keeping all the receipts. As well as Dr. reports etc.
    looking forward to more on the 4 categories.

    Thank you.

  2. Currently in Lisbon headed to Spain soon! I have health insurance but definitely need to get smarter on travel insurance since I travel full time. Thanks for the vid!!!

  3. I will be participating in an English Immersion program with DIVERBO in April outside of Frankfurt, also traveling to Strasbourg, Prague and Vienna. I teach people how to travel frugally and specifically talk about Emergency Evacuation Insurance without which you can find yourself in serious debt.

  4. Actually, Megan, I did watch this video for the pure joy of learning about travel insurance even though I don't expect to be going anywhere anytime soon. Sorry. Hope you're not upset with me. If it helps, I am a subscriber.

  5. Interesting view on different aspects.. I can say for myself, that I travel with my Mastercard Gold insurance, and I travel quite much, and I have had to use the Insurance 3 times while travelling in Asia (2 times with regarding some hospital costs, and 1 time with lost baggage), and all the times there have been not 1 single issue with that kind of insurance.. I dont know if the different banks have different kind of insurances on their cards, but I can just say that mine is gold worth as the name goes 🙂

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