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So you’ve decided to protect your trip by purchasing travel insurance. Good for you! But there are so many travel insurance and coverage options out there, from flight delays and cancellations, accidents and injuries, lost baggage and of course, Covid-19. 

 

Which one is right for you? Make sure to answer these questions before you decide on one. 

What is covered by your existing policy or credit cards?

Do you have personal insurance or a travel credit card? Then check these first. Some personal insurance policies may offer some amount of travel protection, which could be in the form of hospitalisation or medical claims. Check the geographical range covered in your policy if this is the case.

 

Some credit cards also provide insurance coverage when you charge the full fare of your plane tickets to the card. CIMB World Mastercard credit card, for example, offers complimentary up to RM1mil travel insurance coverage that includes loss luggage, flight delays, loss of deposit or cancellation (inclusive due to Covid), overseas hospitalisation allowance, car rental excess and more for you and your family members who travel with you. 

 

In comparison, travel insurance policies allow you to purchase add-on coverage and provide a more comprehensive coverage such as hospital allowance (different from hospitalisation costs), loss of travel documents, and emergency evacuation*.

 

If your credit card or personal insurance policy already covers some aspects of travel, you can simply purchase add-on coverage if needed.

What type of trip is it?

Will you be travelling in a group, with a partner, or flying solo? Family travel insurance offers the benefit of lower premiums, with coverage shared among family members. However, policy options can be limited compared to more customisable individual plans.

 

Multi-trip or single-trip? If you travel frequently, an annual travel insurance plan rather than one-off coverage may be more cost-effective and convenient for trip planning**.

What type of coverage do you need?

 

Your trip itinerary matters. If you’re planning to engage in extreme sports during your trip, you can consider getting extra protection for living on the edge. 

 

Perhaps you want to find a travel insurance that offers coverage for flu-related medical emergencies (for example: Covid), such as monetary claims or compensations for hospitalisation.   

 

Your location also matters. If the crime rate is high at your destination, get coverage for theft of personal belongings, including travel documents.

 

The weather could also play a part in choosing the right travel insurance. For instance, the Shamal season in the Arabian Peninsula, known for sandstorms which lower visibility, could result in delayed flights in and out of Dubai. In such a case, having insurance that covers flight delays and missed connections due to weather-related events could save you from unexpected expenses.

 

 

A lot of consideration goes into getting the right travel insurance, but the effort spent is a fraction of your trip’s cost by mitigating unnecessary expenses and hassle. No matter the destination, we hope that you stay safe always. Be sure to adhere to the Covid SOPs and travel protocols, and keep a lookout for the latest news and updates to keep you and your family protected and safe. Travel safe, travel smart!

 

This article is brought to you by CIMB as part of our ongoing efforts to raise the level of financial literacy among Malaysians. Financial knowledge and understanding are key to making well-informed and meaningful financial decisions that will improve all our well-being. This, in turn, achieves CIMB’s purpose of advancing customers and society.

 

Source:

 

* https://loanstreet.com.my/learning-centre/travel-insurance-credit-card-or-conventional

 

** https://www.gobear.com/sg/blog/travel-insurance/annual-vs-single-trip-travel-insurance-how-to-choose-the-right-plan