7 Myths Of Travel Insurance

Travel insurance is one of those things that people have different views on. Like most types of insurances, there are myths surrounding travel insurance. Here I will summarize the seven most absurd myths on travel insurance in general.

1) You don't need travel Insurance:
This is perhaps one of the top myths about travel insurance. If you are planning on travelling abroad, I mean anywhere abroad, you absolutely need travel insurance. In fact if you feel that you cannot afford travel insurance, I will go as far as saying then do not travel. It is indeed better to not travel than to travel without insurance. Why so? You might ask. Well, simply put travel insurance can save your life!
Travel insurance doesn't only cover you for the non critical aspects of your journey e.g., loss luggage, but it covers you for medical treatment while abroad. This is to say that if you were unfortunate enough to need emergency medical attention while on holiday, it is the medical part of your travel insurance that will be dealing and ensuring you receive appropriate care.

There is absolutely no excuse for not obtaining travel insurance because for most people (those without major medical conditions), the cost of travel insurance is very low. Some people can get comprehensive travel insurance for as little as £10! However the costs for urgent medical treatment while abroad can spiral to hundreds of thousands of pounds.

If these figures seem absurd to you, please do a simply Google search and you will soon find countless of "Go fund me" pages asking for financial support for a relative/friend in hospital overseas.   Travel insurance companies have dedicated medical department equipped with multi-lingual agents, doctors, nurses who have the expertise and the knowledge of a vast number of the hospitals around the globe. Furthermore almost all major travel insurance companies such as Virgin, Insure&Go, AXA etc., have representatives in the various countries who have detailed knowledge of not just the geography of the area but also the medical facilities, transport structure, language and local dialect. All these factors are absolutely crucial in providing you with the absolutely best care in the fastest possible way.

I do not believe that anyone wants to be stuck needing urgent medical care in a foreign country where one doesn't even speak the language! The truth is that when we are planning our holidays, we do not want to think of possibilities of needing emergency medical care while abroad. We want to think of the fun and sun we will be enjoying, and so we should. However, insurances are there for exactly those unfortunate moments we do not wish to think about. The reality is that it is better to take a few moments; travel insurance policies can be purchased online from most major insurers for less that five minutes, and have a complete peace of mind during your holiday than to risk been caught out.

2) Travel Insurance Companies Do Not Wish To Pay Out:
This is another common myth and it does seem to be one that some people believe of all insurance companies not just travel. Insurance companies are businesses that want to be competitive and to grow; this is a fact! Any business that wishes to prosper need to be highly rated by its customers i.e., You, the insured. There is therefore no logic in insurance companies not wanting to cover legitimate claims especially in an internet savvy world we live in. Rejecting legitimate claims can lead to such things as bad press, distrust in the company, lawsuits etc., all of which, will affect any growth potential for such a business. This could genuinely kill a business.

There are times when claims are inevitably regretted by insurance companies. In order for the companies to do so, especially if the claim is of a medical emergency nature and thus more critical than a loss pair of sunglasses for example, the company must be certain that the reasons for rejection are valid and meet the terms & conditions of the policy. In other words the decision to reject a claim is not one that is reached willy nilly by the companies; it is not one that they take pleasure in making either! You might find that hard to believe but think of it this way: when a company rejects a claim (even though there is a legitimate reason for the rejection) the customer/insured more often than not still feels disappointed by the decision. Travel insurance companies, like all companies, want positive feedback not disappointed customers. It is so much so that there have been cases whereby the insurance company was in its rights to decline a claim, however opted to paying out.

I am not suggesting that insurance companies will pay out regardless but what I am saying is that rejection of a claim by a reputable company is something the company does unwillingly rather than the myth that the company take great pleasure in finding ways not to pay out.
For ways you, the insured, can do to reduce the chances of your claim been rejected please see my other article.


3) You Don't Need Travel Insurance If You Are Young & Healthy: 
The chances of anyone needing emergency medical attention while on a foreign land are not affected by age. It is easy to associate illness with old age and thus think that they may be some truth in this myth. It is true to say that there is proof, which show an increased likelihood to ill health the older we get but this likelihood does not apply in regards to travel insurance. The reason for this is simply that the circumstances that often result in a need for emergency medical treatment are more behavioural than age related.

There is an increased likelihood of a younger person taking risks while on holiday than an older person. As an example, a teenager is more likely to hire a moped in Thailand despite limited experience with bikes than a sixty year old. Younger adults/teenagers also tend to take the sort of holidays to areas with high risk of certain illnesses such as gastro-enteritis; the gap year holiday to a remote area in the Amazons or a cheap camping holiday to a place with limited facilities and so on.
Older people tend, as a whole, to be more experienced, less adventurous and more likely to take precautions when overseas that their younger counterparts.

The other reason why the assumption that being young and healthy negates the need for travel insurance is a myth is that, the world at large has become a scarier place than it used to be. There are more terrorist attacks, muggings, stabbings and even shootings than there used to be. Therefore in some cases, it is a matter of been at a wrong place at a wrong time to suddenly finding yourself in need of emergency medical treatment. These unfortunate events are of course irrelevant in regards to one's physical wellbeing or age as a stabbing can happen to anyone.

4) You Don't Need Travel Insurance When Visiting European Countries:
This myth stems from a misunderstood actual health agreement between the UK and Europe. There is such a thing as a "European Health Agreement" which, basically is an agreement that allows UK nationals to have access to medical treatment in European countries for free, as though they were nationals of such country. The nationals of the European countries when visiting the UK, also have equal access to the NHS as though they were UK national. It is a reciprocal agreement commonly known as the EHIC.

There are a few things that one must note in order to utilize the benefits of the EHIC. Firstly, you must present a EHIC card at the European hospital you are to be treated. This is easy to do as you can apply for the card on the link here and it is usually issued to you within a few days. Some hospitals in Europe will not treat a UK national under the EHIC without this card, so it is important to actually have one. The EHIC does have an expiration date so make sure the one you have is actually up to date and thus valid.

Secondly, not all European countries have signed up for to this agreement. Please check that the country you are visiting is actually part of the agreement. The countries not under the agreement include Vatican City, San Marino and Monaco. If you are a EU national travelling to the UK please note that the Isle of Man and Channel Islands do not accept EHIC cards.

Thirdly the EHIC will cover costs for medical treatment only if one is admitted. In other words if you are seen for an outpatient appointment (one that doesn't require you to actually stay in the hospital) you will have to cover the costs yourself. The outpatient treatments are usually minor and pose no emergency need so the costs are usually very low.

The EHIC only works if you are been treated in a public hospital in the European member state. So if you choose to be seen by a private hospital while in Spain, you will not be able to have the costs covered for you under the EHIC even if you have a valid EHIC card.

Finally, the EHIC is not travel insurance but a health agreement between 32 European countries. It therefore does not cover for lost luggages, accommodation due to flight cancellations etc that an travel insurance policy would. However, there are some travel insurance companies who provide a policy at a very competitive price, which works with the EHIC. If you have one of these type of travel insurance, please make sure to read all the terms and conditions full. These policies will also not cover you if you do not have a valid EHIC with you at the time of your hospital admission. Of course with the pending Brexit, we do not know yet how the EHIC will change post Brexit. At this moment in time, the EHIC card can be used as it has been since its introductions as long as one follows the guidelines.


5) You Can Buy Travel Insurance After You Need It:
This is simply untrue for any insurance, travel insurance is no exception. You must purchase your travel insurance before you need it. Insurances work on basis of possibilities versus risk; so the possibility of something (that is covered under the policy) happening to the insured and the risk the company is willing to take for that possibility. Therefore once an event has occurred, say you have lost your suitcase, there is no longer a question on the possibility of you loosing your suitcase against the risk of them having to replace your belongings. In other words they haven't had the chance to assess whether they wish to take the risk and if so for how much or not. Thus you cannot be insured after the fact.

Travel insurance is slightly different from other insurances also in that you cannot purchase travel insurance outside the UK. This is because of the way travel insurance 'laws', if you will, operate. Travel insurance must be purchased from the UK (of course I am only speaking of UK nationals travelling abroad) before the insured has left the country. There is a small window of flexibility with most travel insurance companies regarding this rule in that some, will allow you to purchase the insurance as long as you do so before you physically land at your destination. This 'law' is as a result of trading restrictions on travel insurance i.e., travel insurance companies in the UK do not have licences to sell insurance in other countries.

You also cannot purchase insurance for someone else if that person is already abroad. Some parents have been caught out on this because they assumed that they can purchase insurance for their son/daughter a few days after he/she has started their holidays abroad. The reason for this is that as part of the application process, you must testify to the fact that you (the insured) are in fact in the UK at the time of your application and purchase.

6) You Can Lie About Your Medical History To Get Cheaper Insurance:
Yes, you can lie about your medical history and in many cases if you have an extensive medical history or certain 'high' risk medical conditions, this would lead to a reduced premium on your insurance. However, there is no point in doing so. One of the first things you will be asked to do once you have informed your insurance company of your hospital admission or need for emergency medical treatment, is to sign a medical declaration form. This form allows the insurance companies to contact your local GP for your medical records. Therefore if you choose not to declare a certain medical condition and it so happened that you are in a hospital abroad needing emergency care for the said condition, your insurance company will be able to see that you already had this condition from your GP notes but did not disclose it. Your claim will therefore be declined. Furthermore obtaining a service under deception, as this would be, is a form of fraud. In short it is not worth lying!

7) You Need To Scream & Shout At The Insurance Company To Get Things Done:
Travel insurance companies are run by people, not robots. It might seem tempting to want to assert one's authority over the phone by making bizarre demands or generally been difficult and even rude when speaking with insurance company but this never, ever works. I am not suggesting that there aren't situations that merit a less civilized interaction with an insurance representative when dealing with your claim but it is always best to remember that demeaning behaviour towards others does not illicit better corporation.

It is even more important when dealing with the medical departments of travel insurance. Normally we tend to be more likely to revert to been rude or aggressive when we are scared or under pressure. It is common to see people in emergency medical situations in foreign land or their next of kins dealing with the fear, vulnerability and uncertainty of the situation they find themselves in by been uncharacteristically rude.

In almost all travel insurance companies, the phone lines are constantly monitored and all calls recorded. It also the case in these companies that there are procedures to be strictly followed in regards to complaints, rudeness, aggression and so forth. Therefore when a representative is been subjected to such behaviour what happens is that the procedures are triggered. The rep will likely have to speak to manager/team leader, fill in forms, put extensive notes on the file regarding the incident and on and on. All these extra steps are achieving one main thing and that is further delaying the service/outcome you desire the most. It further means that the rep is not available, whilst she/he completes the procedures, to advance your case further or deal with other customers waiting on the queue. Depending on the extent of the situation, further investigations may be ordered by managers, calls might need to be pulled and listened to etc.

As a general rule of thumb, companies appreciate constructive criticisms. Complaints can indeed be a valuable source for training and service improvement for many companies and they regard it as such hence implementing measures such as call recording. However, my point here is to those who believe that they must be uncivil or rude to the rep in order to get something done when there has been no cause for them to have to do so.

Travel insurance companies are doing what they can, as fast as they can to assist you. In many claim cases different departments, agents and even countries work together to successfully and quickly handle claims. It might seem like things are slow but unless they really have been, do remember that there are many facets behind the scene dealing with your claim. It is more so for medical related claims. Also remember that no insurance company wants to upset you or cause you to distrust them because they need your business. It is a two way system that needs corporation from both parties; the insured and the insurance company. In the end both parties desire the same outcome.