Case Study: Travel Insurance for 1 week in Bali

So I've got a week of leave coming up and I wanted to take a relaxing holiday to Bali, Indonesia. This will be a slightly different holiday than I am used to. I'm usually heading for more adventurous locations and doing the whole backpacker thing but this is a chance to just to have a break and relax in the sun. I've bought some cheap airfares tickets from Jetstar (avoid their travel insurance) and booked my accommodation at Expedia. Got a great deal on a 4 star resort!

 

Now comes the tricky part. Buying travel insurance.

Jetstar offer travel insurance (which was selected by default) but I wanted to shop around so passed on that. There aren't any comparison websites that offer a wide selection of the major brands so I'll need to visit them individually.

 

First, lets work out what I need cover for:

- Medical and hospital is without doubt the most important. There have been many cases of people becoming sick or injured in Bali and it ranks as the most dangerous holiday location for Australians. Ideally I'll look for unlimited medical and repatriation (ie, getting flow home to an Australian hospital).

- Cancellation. I've only got a week for holidays so I don't want to risk it being ruined if the plane or accommodation is cancelled.

- Luggage. I'll be taking my HTC Android Smartphone ($800), iPad ($700) and Laptop ($1200) which I'd like to cover with travel insurance. Plus general cover for all my other baggage.

- Other things? Anything else is really just a bonus. I don't plan on renting a car or riding a scooter or motorcycle. No adventure sports are on the adgenda though I might do some kayaking and snorkeling.

 

Lets look at some travel insurance contenders

My trip details are: 1 week in Bali for a Single aged 30 years old.

Travel Insurance Direct
Cost: $39.00 ($63 with additional item cover)
Medical: Unlimited
Cancellation: Unlimited
Luggage: $12000 with per item limit of $700. Brings the cost to $63 to cover my laptop and phone.
Reviews of Travel Insurance Direct 

Worldcare
Cost: $33.30
Medical: Unlimited
 Cancellation: Unlimited
Luggage: $12000 with per item limit of $3000 for computers, $1000 for phones, and $750 for others.
Reviews of Worldcare Travel Insurance  

InsureandGo (Silver)
Cost: $45.15
Medical: Unlimited
Cancellation: $15,000
Luggage: $6000 with per item limit of $4000.
Reviews of InsureandGo

1Cover
Cost: $45.00
Medical: Unlimited
Cancellation: Unlimited
Luggage: $5000 with per item limit of $3000 for computers, $1000 for phones, and $750 for others. Reviews of 1Cover Travel Insurance  

iTrek Travel Insurance
Cost: $44.94
Medical: Unlimited
Cancellation: Unlimited
Luggage: $5000 with per item limit of $3000 for computers, $1000 for phones, and $750 for others. Reviews of iTrek Travel Insurance

 

Which travel insurance did I pick?

The stand out for me was Worldcare Travel Insurance. It was by far the cheapest and covered everything I could want and more. I was surprised that the item limits were so low on the Travel Insurance Direct policy and it costs a lot more than any other company to cover my laptop, phone, and tablet.

Remember to read the PDS and take your personal circumstances into account when buying travel insurance. This blog post is not financial advice but just my individual story.

New website for Travel Insurance Direct

Travel Insurance Direct have a new website that introduces a new look to the brand and emphasises the TID acronym. It features bold blue colours with the focal point being the online quote function. Policy coverage is not changing although there are small updates from time to time. Pricing may change frequently and is not related to the website update.

Also, Travel Insurance Direct recently  moved to a new underwriter, Loyds, after being with Allianz for a number of years. Their PDS and schedule of benefits are mostly the same but potential customers should read them fully to ensure they will be covered for what they need. Existing customers are covered under the policy in effect at the time of purchase. Travel Insurance Direct can supply the correct PDS and provide further information.

Read more about Travel Insurance Direct, including customer reviews: http://www.travel-insurance-reviews.com/travel-insurance-direct/

Air Australia collapse and Travel Insurance

Air Australia (formerly Strategic Airlines) hadn't been in business as a passenger airline for long before it was placed in administration, although it was a charter and freight airline for over 20 years.
Air Australia positioned itself as a low cost carrier (LCC) and was directly competing with the likes of Jetstar and Tiger Airways. It offered low fares to domestic and international destinations, notably Hawaii, Thailand, and Bali. When they were placed into administration many passengers were stranded overseas or left holding worthless tickets. More information can be found on Wikipedia: http://en.wikipedia.org/wiki/Air_Australia
What will Travel Insurance cover?
First place you need to check is the PDS. This spells out the terms and conditions of your travel insurance policy. Then go to the travel insurance company's website and check for any updates (or call them). If there are exceptions in place or your policy doesn't provide coverage you won't get any help from your insurance company.
Otherwise you will be covered for (up to the policy limits):

• Cost of re-booking flights
• Hotel accommodation
• Food and other incidentals

Ensure that you keep all receipts and check with the insurer the quality they will cover. They will generally only match your existing or previous level, eg if you booked economy seats you will only be covered for the cost of economy flights. Accommodation is usually at a 3 star level.
Remember that you will need to pay an excess for claiming. If you have future flights booked it might be best if you do a charge back via your credit card (if you paid with one) as this won't be reduced by an excess.

Need help finding the right travel insurance? Take a look at Allianz Travel Insurance Reviews and Travel Insurance Direct Reviews.

No Travel Insurance in Bali - $45,000+ cost

You may have recently read about the Australian Nurse who, while holidaying in Lombok (Bali), drank a poisoned cocktail. She become very sick and had to be flown back to Australia at a cost of over $45,000. She has terrible injuries and may be permanently affected. This is a terrible incident that also highlights the need for travel insurance.

The travellers took all reasonable precautions and certainly weren't expecting to need medical assistance. They went to a reputable restaurant and ordered a local cocktail. Disaster can strike when you least expect and it is best to always be prepared. Travel Insurance doesn't have to be expensive and many companies offer a budget or medial only travel insurance plan that would have been great in this circumstance for paying the medical bills in Bali and medical evacuation back to Australia.

Make sure you take out travel insurance on your next international holiday. An Australian going to Bali for a week can pay as little as $23.54 for Bronze cover with iTrek Travel Insurance which covers unlimited Medical costs. With iTrek Platinum cover costs $46.01 and also has coverage for luggage, cancellations, theft of document or cash. An alternate travel insurance company is Worldcare Travel Insurance whom offer a Budget plan for $28 and comprehensive travel insurance for $47.


*Note - prices correct at time of publishing for 1 adult under 60 travelling to Bali from Australia for 1 week and is an Australian citizen.

Travel Insurance Direct Coupon Discount Code

Travel Insurance Direct have released a new coupon for 10% off. Travel Insurance is vital for all overseas trips, be they for a holiday or business purposes. Even if you are only going on a domestic holiday in Australia it is still a good idea. Read reviews on travel insurance to help find the right one for you.

Want 10% off Travel Insurance Direct?

SPRING2011

The latest reviews on Travel Insurance Direct are online at www.travel-insurance-reviews.com/travel-insurance-direct/

Enjoy your trip!

Tiger Airways still grounded in Australia

It was just announced today that Tiger Airways in Australia was grounded until at least 1 August 2011. That will bring the total time to 1 month since they would have flown unless they are grounded further or deregistered.

What does this mean for people who have bought tickets through Tiger?

• If you are flying Internationally you won't be affected unless you need to make domestic connections.
• Tiger is refunding your domestic tickets if they have been canceled. But only up to when they are officially grounded. People have reported that it can take 6 weeks to get a refund but the airline is quoting 2 weeks.
• Tiger won't cover the cancellation or rebooking fees associated with the rest of your holiday.
• Travel Insurance won't cover these costs if you take out insurance after Tiger was grounded.
• If you already have Travel Insurance before the grounding announcement and will incur costs due to cancellation or rebooking, contact your Travel Insurer for advice. They will tell you what kind of documentation you need to submit for a claim.

Travel Insurance and Civil Unrest in Egypt

The recent troubles in Egypt highlight the need for taking out travel insurance. Thankfully it was rare for tourists to actually be injured and require medical attention as the protests were largely non-violent. However, it was still a potentially unsafe area and not a place you would want to go for holidays. Luckily there were several benefits of travel insurance that would help.

Cancellation - If you were yet to go to Egypt your Travel Insurance provider was more than likely happy to pay your cancellation costs so you weren't out of pocket. Alternately they could pay for the costs associated with moving your travel plans to another date. It is cheaper for them to do this than potentially have to spend a lot more if you get hurt over there or the situation gets even worse. If you were already in Egypt and wanted to fly out you could be reimbursed for cancellation charges of accommodation, flights, tours etc that you hadn't used.

Additional Costs - If you were in Egypt and wanted to get out then your travel insurance should pay for any additional costs that arise from this such as flights, accommodation, and transport.

Medical Costs - And of course if you are injured during an event like this you will be covered for your medical and hospital costs.

Always check with your travel insurance company if you are heading into an area that is potentially dangerous like the Egyptian crisis or it may involve volcano's, cyclones, or other natural disasters. You can also review your travel insurance policy to check what you will be covered for.