By Jane E. Fraser
Illustration: Michael Mucci.
Your age, health and destination determine the cost of insurance and using comparison websites can help you make a decision.
IN LAST week's Sun-Herald Travel section, this column outlined some problems and queries travellers have with travel insurance and put them to Australia's main insurance providers. Today, we continue to ask questions on behalf of readers.
Being told you're old
For travellers over 60, even those who are fit and healthy, getting travel insurance can be a source of frustration. Older travellers, particularly those over 70, report having to pay big premiums and being asked to jump through hoops or they cannot get insurance at all.
The customer service manager for Travel Insurance Direct, Alison RexPaulin, says older travellers need to understand that they are among those most likely to put in a claim.
"No one would be shocked if a motor insurer regarded an 18-year-old Ferrari driver as a high risk," RexPaulin says.
"In the same way, an 80-year-old travelling to America for two months represents a higher risk than a 30-year-old doing the same trip."
The chief executive of Allianz Global Assistance, Ian Norris, says experience also shows travellers in higher age brackets are more likely to suffer medical complications that require extensive, and therefore more costly, treatment.
A spokeswoman for the travel insurance comparison website travelinsurancequotes.com.au, Celine Camelin, says those in good health can usually obtain coverage no matter how old they are, although they may have less choice when it comes to providers.
Camelin says premiums are not just determined by age but by overall health, destination and length of trip.
RexPaulin says premiums for older travellers can vary enormously, so it pays to shop around.
"If you're over 60, you will most likely find that your travel insurance costs a bit more but it doesn't have to be prohibitive," she says.
The marketing manager for CoverMore Travel Insurance, Lauren Cacciola, says travellers can reduce their premiums by considering the level of cover they need for other areas, such as cancellation, or by opting for a higher excess.
Getting credit
Several readers have reported issues with travel insurance provided through credit cards, particularly with getting confirmation that they are covered. Travellers reported being shuttled between the bank, the card provider and the insurance provider trying to ascertain that the insurance had been activated and to get documentation for the policy.
"Although I complied with the eligibility requirements, having paid almost all our travel costs with their card, I could not get the [bank] or their insurers to confirm that I was covered," one traveller wrote.
A spokeswoman for American Express, Jane Drew, says many credit card providers offer free travel insurance but the cover varies significantly.
It is important for travellers to read the terms and conditions and know how much they need to spend on their card to activate the cover.
"With some cards [such as the American Express platinum card], the cardholder is covered by the insurance policy simply by being a card member," Drew says.
"With others, travel expenses need to be purchased using the card for the insurance to be activated."
RexPaulin warns that insurance provided through credit cards can be "very limited in its scope" and travellers should check the details of coverage carefully.
Party limits
Drinking and partying is a big part of a holiday for many people but there can be serious implications when it comes to travel insurance.
One reader wrote about a battle to get a $50,000 hospital bill paid because there was a suggestion that alcohol could be a factor in the medical condition. The insurance company did eventually pay but only after a legal battle.
Norris says Allianz will refuse any claim where there is a "clear link" between alcohol consumption and the cause of the claim.
A spokesman for CGU says while many policies have alcohol-related exclusions, they "typically do not rule out a glass of wine with dinner".
"It is more targeted at the drinkers whose excessive consumption puts them at additional risk of causing injury either to themselves or to those around them," he says.
Cacciola says CoverMore only excludes claims where the alcohol consumption is related to the cause of the claim. "As an example, if you were drunk while driving a car and had an accident, the exclusion would apply; if on the other hand, while drunk you were hit by a car that ran off the road onto the footpath, this exclusion would not apply and we would cover you," she says.
Do your research
Social media is one of the best ways to get information about travel insurance providers and how they handle claims, says the customer service manager of Travel Insurance Direct, Alison RexPaulin.
"If you're worried about a company's reputation, the key thing is to do your research," she says.
"Social media is a pretty powerful tool in outing any companies with bad practices, as is word of mouth.
"Ask your friends and go online to get feedback about a company before you commit to a policy."
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