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Do You Need Insurance?
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Insurance costs for extended travel can get quite expensive and end up being a complete waste of money. I haven’t purchased insurance for the past year but only because I was moving around less and traveling within countries with lower petty crime rates. But if you’re even slightly worried I would purchase insurance and have the peace of mind that comes with it. I’m incredibly happy that I did when I did. There are many affordable plans out there so take into account where you plan to travel to and the types of activities you’ll engage in before making a decision.
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For Personal Belongings.
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Travel insurance contracts have a limited amount of coverage for belongings. So if you are carrying lots of expensive photography gear I would recommend purchasing separate renter’s insurance on top of your general travel insurance. I was able to get a quote for as low as $100/year through Geico and cover up to $12,000 worth of gear.
If you have two separate insurance contracts you can submit a claim to your secondary insurance to cover items that weren’t reimbursed by your primary.
Make sure to read the fine print on the contract as well. For example, World Nomads doesn’t cover sunglasses.
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For Health.
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I’ve had stitches, an eye infection, lung infection, and several bouts of food poisoning in three years abroad and usually the costs of the doctor and medicine never amounted to much. These medical costs amounted to less than the total cost of the travel insurance. But take this with a grain of salt as it could have been much worse.
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For Vehicles.
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I always purchase the collision damage waiver whenever I rent a car. I’ve had one major accident while traveling and it saved me from paying $12,000 in damages.
Check to see if your credit card company provides collision damage waiver if you rent a vehicle using their card. The card company requires you to decline the optional insurance rental companies provide but sometimes the extra paperwork isn’t worth it.
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The Claims Process.
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I’ve gone through this unfortunate mess several times. Here’s what I’ve got to pass along.
1. Make sure you have proof of ownership for your valuables
Email receipts are usually sufficient but for more expensive belongings try to have photos. For those with lots of camera gear these photos are a must. If you don’t have receipts then get your equipment appraised at a photography store. Not all stores do this so you’ll most likely have to ask around. Don’t let the insurance company have any reason to reject your claim. For health issues make sure you request specific paperwork for insurance purposes.
2. Report to the police immediately
This is the most important thing you can do for every claim if you’re the victim of a robbery or a car accident. Failure to do so will most likely void your claim.
3. Get prepared for paperwork and a long wait if your loss was substantial.
From my experience, if your claim is only a few hundred dollars or less the reimbursement process is fairly quick. However, if your loss is substantial be prepared for a lengthy and annoying process. My claim of several thousands of dollars wasn’t closed until 1.5 years after it was originally filed.
A company to avoid is Assurant. My adjusters were constantly being switched and unavailable. It was frustrating and terrible experience.
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Bottom Line.
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Don’t take anything you don’t mind losing or having stolen. Being stressed about your belongings is a huge distraction from enjoying your travels. But just take comfort in the fact that theft is still a pretty rare occurrence while traveling.