Travel insurance can be a lifesaver when things go wrong on your trip, but choosing the right level of coverage can be confusing because there are different types of coverage offered by insurers.
In essence, travel policies are divided into two types — full and common coverage — which most average travellers cannot tell apart. Hence, we’ve simplified the differences between the two in this article, to enable you to understand them better and choose your ideal policy for future travels.
Full Coverage
Full coverage, also known as comprehensive coverage, is the most robust type of travel travel insurance because it provides protection against a wide range of risks, including, but not limited to:
- Trip cancellation or interruption
- Medical expenses
- Emergency evacuation
- Lost or stolen luggage
- Rental car damage
- Personal liability
- Missed departure
- Benefits: With full coverage, travellers can enjoy peace of mind knowing that they’re protected against a variety of potential problems that might happen during their trip. This can be especially important when travelling to a remote or unfamiliar destination, or if you have a lot of expensive pre-paid travel arrangements.
- Drawbacks: The disadvantage of full coverage is that it is typically the most expensive type of travel policy you can purchase. Due to its price point, full coverage may not be ideal for everyone, especially if you’re taking a short trip or to a familiar destination.
Common Coverage
Common coverage, also known as basic coverage, is a more limited type of travel insurance. It typically covers the most common travel risks, such as:
- Trip cancellation or interruption
- Medical expenses
- Emergency evacuation
- Lost or stolen luggage
- Benefits: Common coverage is a more affordable option compared to full coverage. Due to this, it can be a good choice for backpackers and those who are taking a low-risk trip, such as a domestic vacation.
- Drawbacks: Since common coverage is more affordable, it may not protect against all of the potential risks you might encounter on your trip. For example, it may not cover rental car damage or personal liabilities, among others, which are typically included in full coverage.
Which coverage is right for you?
Since there are obvious differences between full and common coverage, choosing the best flight insurance for yourself has to take some of the factors below into account:
- The length and destination of your trip: If you’re taking a long trip or to a remote destination, you may want to consider full coverage over common coverage.
- The value of your pre-paid travel arrangements: If you have a lot of expensive pre-paid travel arrangements, such as flights and hotels, consider full coverage to protect your investment.
- Your risk tolerance: If you’re risk-averse, you should consider full coverage. But if you’re more comfortable with taking risks during your trip, you may then go with common coverage for the more important matters.
Ultimately, the best way to decide which type of travel coverage is right for you is to consult an insurance agent, who can help you assess your needs and recommend the best policy for you. Additionally, always make it a practice to read the policy terms and conditions to fully understand what is and isn’t covered. You should also compare prices from different insurers using platforms like Bjak, instead of going with the first insurer you find.
Bjak is one of Malaysia’s biggest insurance comparison websites, offering policies from over 10 brands. Get your free insurance quote from Bjak today!
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