Should You Pack Travel Insurance?

Packing for a trip abroad is one of my favorite things to do – it adds to the anticipation of that departure date. But some things are less fun to pack and plan – yeah, you guessed it: travel insurance. It can be a daunting task to prepare when travelling, but one of the most important one. Apart from my passport, my #1 packing essential is always my travel insurance policy.

HERE’S WHY:

When you leave Canada or even your province of residence, your health coverage seizes and doesn’t cover you in case of a medical emergency abroad. Every traveller, tourist and adventurer should be aware and informed about being covered for emergencies abroad. As a Canadian, I am used to having most of my medical emergencies taken care of by our provincial health care coverage, however when I leave my province, that’s where my coverage ends. When you leave your home country, you shouldn’t expect it to be the same everywhere. So, do you really need to spend those extra few $ to buy that travel insurance policy?

UNDERSTANDING TRAVEL INSURANCE OPTIONS

The most important part is to understand what travel insurance really is and see if it’s a right fit for you as a traveller. As with any insurance policy, travel insurance does not cover everything. This is where travel insurance gets a bad reputation. But knowing what you are covered for by reading and understanding your policy can prevent many issues and misconceptions. And if you do decide on travelling without proper coverage, you should have the basic knowledge that you are at risk of incurring very expensive treatments and expenses shall something happen to you or to your travel plans. Many of us have travel coverage through credit cards or work benefits. But do they really cover adequately? Again, it’s all about understanding that policy and knowing what it covers. Here’s some of the most popular coverage:

CANCELLATION & INTERRUPTION

This coverage is meant to reimburse you in the event of non-refundable expenses in case of a trip delay, cancellation or interruption. However, it’s not a “coverage for everything” policy. There are multiple reasons that are covered, yet even more reasons that are NOT covered. The important part is to understand the terms & conditions and the exclusions of this travel insurance option. For example, if your pet dies suddenly before your trip, you most likely won’t be covered, unless it is specified on your policy that it is. It is also important to understand the Terms & Conditions of the tour operator, airline or accommodations that you have reserved with, as most have cancelation policies and you shouldn’t assume that you can cancel without any penalties. Even major airline delay expenses are often not covered by airlines, so what if that big snow storm prevents you from catching your next connection? Never assume that the airline is liable, they also have fine prints in their terms & conditions. Having the proper interruption package can save you from incurring extra expenses to get you on the next flight.

BAGGAGE

Oh the horror stories of lost baggage; we hear them all the time. Lost, stolen or damaged luggage and belongings can be a pain to deal with. With the proper coverage, this can be one less headache to deal with while travelling.

MEDICAL EMERGENCY

Nobody wants to get sick or hurt on holidays. Mishaps do happen and so do emergencies. This policy is meant to protect you shall a medical emergency happen during your trip. Don’t assume because we have pretty good emergency coverage in Canada that a simple hospital visit won’t cost you much. In some countries, you can get pretty good health care for cheap, however would you chance it? Unless you have major savings in your bank account and aren’t afraid of spending it on a medical emergency, the right policy can cost you a fraction of the price of that hospital bill. As with any insurance policy, don’t assume everything is covered. Especially if you have an existing medical condition – that most likely won’t be covered, but again it’s all about understanding your policy’s inclusions and exclusions. So what’s the chance of a medical emergency being covered? Well I’ve experienced first hand the need to use it in Mexico. I’ve always bought a travel insurance policy for every trip I took out of my country. After many years of not having to use it, it still would not cross my mind to forgoe this important part of my travel budget and plans.

HOW DID MY TRAVEL INSURANCE POLICY HELP ME IN MEXICO?

During my stay in Akumal, Mexico last December, I had a medical emergency. As I was riding my bicycle in a residential condo development, the tire guard got caught in the back tire causing the bike to halt to an abrupt stop – causing me to fall off the bike and hit my head on the cobblestone road. I hit hard, didn’t loose consciousness, but it did cause an open gash. Luckily, there were security staff driving by who took me to the medical clinic on site. The Dr. examined me and recommended I go to the Hospiten in Playa del Carmen for stitches (as they are affiliated). What???? Noooo! I was just starting out my holidays….. The first thing I did was call Allianz Global Assistance, my travel insurance provider. P.S. I always carry my travel insurance wallet card with me – and it came in handy as I had my policy # and their 24hrs emergency contact information. They asked a few questions, I answered and they directed me to go to the recommended hospital. Again, there was a bit of paper work to be filled out by the attendant at the medical office on site, but they spoke very good English and were very accommodating of my medical needs. Just a side note, the visit alone to the medical office was $125USD. An EMS vehicle then took me to Playa del Carmen – pre-arranged by the medical clinic and the transfer cost was covered and pre-arranged to be paid by my insurance provider.  

THE HOSPITAL VISIT

Once I got to the hospital, that’s where it got a bit complicated and overwhelming. Fortunately, I was aware of my surroundings and could communicate clearly. There was some paper work to fill out before even being admitted and unfortunately, I had to pay a pretty hefty deposit for them to even admit and look at my wound. Are you ready for this? $2,500USD had to be held on my credit card for my admission. Why so expensive? The attendee on site told me that head stitches in Mexico are expensive because they had to call a specialty surgeon to perform the sutures and to make sure I didn’t have a concussion. Hum? Ok, I am not too familiar with the system, so I won’t argue, but I did call my travel insurance provider again and asked them if this was normal and if there was a way for them to pay the hospital directly. They informed me to proceed and as it ended, it was a Sunday afternoon and they explained to me that it could take up to 24hrs before the funds were directly sent to the Hospital, therefore I would have to stay for that duration until the bill was paid. Well that wasn’t happening, so I decided to go ahead and pre-pay the deposit. After being admitted, it took a little over an hour or so for the whole process at the hospital; from the examination to finishing the medical procedure. Once all was done, my final invoice came out to approx. $1,800USD. I was a bit shocked at the sticker price but I can honestly say that the facility was very clean and I received excellent medical service from the nurse and Dr. who performed my stitches. I returned 9 days later (as I was staying for 3 weeks) and the same Dr. took them out without any issues and provided me with a clearance to fly letter. I made sure to keep all my receipts, the medical statements and the accident report taken from the security staff to send in with my claim. Once I got back home, it took just over 3 weeks after sending it in the mail to get my full refund. Another tip is to keep your flight tickets. With my claim, they asked for proof of travelling to that area, so I needed to validate proof of travel (e.i. flight tickets).

WAS I GIPPED BY THE HOSPITEN IN PLAYA DEL CARMEN?

Maybe, maybe not (my Insurance provider covered the costs). I know for a fact that I could have gotten cheaper services at a Red Cross medical facility in the area, but this was my first time needing medical attention, so I didn’t take time to really think about my options, as I was in a bit of shock and in an unfamiliar territory. I followed my travel insurance provider’s advice and I can say that I received excellent service from all who I encountered on my medical emergency situation and was really glad that I had purchased that medical emergency policy that cost a fraction of the medical expenses – even if I had to pay up front. And this is where there seems to be a lot of confusion. Most people (as I did) think that all is covered and will be paid for on the spot. Not so, while some have experienced all expenses prepaid under a covered reason, I on the other hand, did not. Was it because it was a Sunday? Maybe, but what I do know is that there is a chance that your medical emergency can cost you up front and to be aware of that when you travel. Tip: bring an emergency credit card with you in the event that you do need to pre-pay for some services.

MEDICAL SERVICES CAN COST YOU ANYWHERE

And this is not just in Mexico; did you know that visitors to Canada experience the same medical expenses while they visit here? I was shocked when one of our clients from the UK had to visit our local hospital for a minor medical emergency. He was actually charged a similar amount to mine for minor medical services. While lots of stories are going around about medical fraud in Mexico, this kinda put it into perspective. Medical emergencies and services are expensive everywhere! So it doesn’t really matter which country you travel to, there’s a price to pay for medical services and it ain’t free! For me, medical emergency insurance is always an important part of my travel budget and should be planned accordingly. It’s a small price to pay for keeping your medical emergencies covered abroad. So will you pack your travel insurance on your next trip? You’re only one click away from getting your personalized quote HERE.