Going on a much-anticipated vacation often means that all we think about is relaxation. It’s understandable—taking a break from work, spending time in an enjoyable way, and having no obligations. However, don't forget that illnesses or accidents don’t take vacations. This is especially true if you plan to engage in extreme sports, travel extensively, or suffer from a chronic illness.
The cost of medical treatment abroad without travel insurance can be staggering. How many times have you heard about enormous hospital bills in the USA, patients being held in the country of travel until they pay, and fundraisers set up to cover these expenses?
Meanwhile, all it takes is to purchase travel insurance with appropriately chosen coverage. It's not that expensive (though it depends), and you can enjoy your vacation with peace of mind.
When Does Travel Insurance Protect Us?
Travel insurance protects us during—no surprise here—our travels. This includes the day of departure (such as the journey within Poland to the destination) and lasts until the day of return.
Such a policy is meant to protect us in the event of illness or an accident abroad and the resulting costs. Some might think, "I have an EHIC (European Health Insurance Card), so I don’t need to worry when traveling in Europe." This is definitely a mistaken belief.
While both the EHIC and travel insurance provide funds for treatment in emergencies, the EHIC does not cover rescue costs or the cost of returning to your home country due to illness. Additionally, the EHIC does not work outside of Europe. Therefore, even if you plan to travel to a neighboring country, it’s better to invest a small amount in a good policy and have protection from EVERY angle.
What Does Travel Insurance Typically Cover?
Travel insurance usually includes the following coverage:
- Medical expenses abroad,
- Civil liability,
- Personal accident coverage,
- Assistance,
- Additional coverage options such as trip cancellation insurance, baggage protection, etc.
The scope of protection offered by the policy largely depends on what you choose and the policy you purchase. Additional risks (such as extreme sports or chronic illnesses) are also important considerations.
Medical Expenses Insurance
This coverage pays for any medical expenses incurred abroad due to an unexpected accident, illness, or exacerbation of a chronic condition. The chronic condition must be disclosed when taking out the insurance; otherwise, the insurance company may refuse to cover it.
This can include both small expenses and large ones—from a simple prescription at a pharmacy or a doctor’s visit to covering hospital bills that often amount to thousands.
The most important "exclusion" regarding medical expenses is that the insurance company will not reimburse costs if the visit/surgery/procedure is not due to an accidental situation. So, you can’t expect funds in your account for something like a planned cosmetic surgery.
If you are abroad and an unexpected health need arises that generates costs, don’t forget to keep all documentation. Only with this documentation will insurance companies cover all costs. In more serious cases, you can usually count on cashless claims processing between the hospital and the insurance company.
Trip Cancellation Insurance
This coverage guarantees reimbursement for the cost of tickets/travel/hotel and other expenses incurred if, due to a SUDDEN and UNFORESEEN event, you cannot take part in the trip. As you can see, I emphasized two adjectives because it cannot be based on the insured’s whims. It must be an actual situation (such as illness, accident, or deterioration in health) that prevents you from traveling.
Additionally, this type of insurance often has several limitations and rules. One of them is the requirement to take out the policy within a certain period (e.g., 14 days) from purchasing the tickets. This is intended to reduce the number of fraudulent claims and last-minute "changes."
The information on when you can expect reimbursement for a canceled trip is usually found in the general insurance terms. Anyone who buys insurance should carefully review these terms.
Civil Liability
Civil liability insurance guarantees the payment of compensation if a third party makes a claim against you. Here are a few examples to best illustrate when this insurance would apply:
- Accidentally bumping into and breaking a vase in a store,
- Hitting a pedestrian while riding a rented bicycle,
- Colliding with another person while skiing (of course, provided you purchased the appropriate extension for sports coverage).
There are countless examples, but they all revolve around unintentionally causing damage to someone else’s property or health. One of the most frequently asked questions in this case is, "Will the insurance cover costs if I caused an accident while intoxicated?"
For several years now, all insurance companies have been covering incidents even if alcohol was involved. However, don't abuse this rule because if the damage is caused by stupidity or recklessness, you may face a cost recovery claim.
What about driving a vehicle, such as a rented car? Car insurance can be tricky because additional contracts usually aren’t very attractive. They typically cover only a small portion of the costs. It’s straightforward if you’re driving your vehicle within Europe—mandatory car insurance protects you.
If you’re renting a car outside the EU, it’s worth looking into the options offered by the rental companies themselves.
Baggage Insurance
As the name suggests, this coverage protects your baggage in case of unforeseen events. The definition of baggage is usually the same across all insurance companies: suitcases, backpacks, bags, briefcases, parcels along with their contents in the form of clothing and personal items belonging to the insured, as well as bicycles, strollers, and wheelchairs, tents, sleeping bags, mats, mattresses during international or domestic travel.
When does this insurance protect us? A direct quote from the general terms of Allianz Your Travel Insurance best explains it.
"Allianz will pay compensation if the travel baggage is lost, damaged, or destroyed due to the following unforeseen events occurring during the coverage period:
- fire,
- lightning strike,
- explosion,
- airplane crash,
- strong wind,
- torrential rain,
- hail,
- flood,
- tsunami,
- earthquake,
- volcanic eruption,
- theft with burglary from the rooms and places mentioned in paragraph 2 above,
- robbery,
- accident or disaster of the means of transport,
- sudden illness or accident as a result of which the insured person suddenly lost the ability to supervise the baggage.
Within the insurance sum specified in the Allianz policy, the company also covers damage to travel baggage:
- resulting from contamination or dirt caused by an unforeseen event listed in paragraph 3 above, covered by the insurance,
- resulting from a rescue operation conducted as a result of an unforeseen event listed in paragraph 3 above, covered by the insurance,
- in every case where the travel baggage was entrusted to a professional carrier based on the appropriate transport document."
Personal Accident Insurance
I wrote a comprehensive article about personal accident insurance. It outlines various types of impairments and possible benefits. In short, this is additional insurance that guarantees financial means in the event of permanent impairment resulting from an accident during travel.
This could include a broken leg, arm, severe burns, and many other incidents listed in the table of impairments in the general terms.
It’s important to remember that even abroad, EVERY personal accident insurance policy covers us. If you have insurance linked to your home, you can also claim compensation from it.
Travel Insurance and Chronic Illnesses
If you suffer from any chronic illness, you’re probably aware that it could worsen while you’re abroad. In such cases, the insurance company will also protect you and cover all costs—provided you disclose this information before taking out the travel insurance.
Once you report a chronic illness, your premium will increase, but if you want full protection and a safe trip, you must account for higher risks and costs. If, for example, one person in a large group has a chronic illness, it’s worth separating the insurance (even in the case of families). This way, others won’t pay an inflated premium.
In this case, it’s not worth lying to save a few dozen zlotys. It could affect not only your health but also your wallet abroad.
Extreme Sports
As with chronic illnesses, if you plan to engage in extreme sports (often listed in the general terms), it’s worth mentioning this upfront and preparing for a slightly higher policy cost. Travel insurance for skiing, skydiving, diving, or mountaineering will be more expensive. However, by extending your insurance coverage, you can enjoy all the attractions without worry.
What Else Does Travel Insurance Cover?
Travel insurance typically includes additional benefits such as:
- Assistance: Access to a helpline, help organizing alternative transport, treatment, accommodation,
- Home burglary insurance during absence: (although this is usually an add-on).
The coverage depends on the primary benefits mentioned in the points above and any additional provisions in the insurance terms. It’s not as flexible as life insurance, for example. You can choose from several different packages, covering various sums insured.
I’m Going Abroad to Work—Should I Get Travel Insurance?
If you’re going abroad for work, you can still protect yourself by purchasing appropriate travel insurance. However, there are special provisions that may change the price, for example. Travel insurance can be long-term, with or without returns to Poland, but it covers all events abroad—whether work-related or not. Buying travel insurance for work trips is a very standard and common practice.
Is It Worth Buying Travel Insurance Online?
There are many travel insurance comparison websites online. As with any insurance, if you decide to buy a travel policy online, make sure to read all the terms, fine print, and check how different insurance offers differ. Don’t be tempted by a low price.
If you want to be sure that travel insurance will cover all possible risks, it’s best to seek the help of an insurance advisor who can help tailor the travel insurance to your needs.
