Travel Insurance – Planes, Uncertainty, and Your Trip

If you’re planning a trip any time soon, then some of the news about planes and airlines may have you feeling slightly concerned. It seems like there is currently a rush of headlines about one of the largest Airplane manufacturers in the world, Boeing, and the fact that their planes have encountered more than their fair share of issues over the last 12 months.

From Door Plugs Falling Out of Planes Mid-Flight, to Engine Issues, more and more passengers are looking at their options to avoid traveling on Boeing aircraft. On March 25 2024 it was revealed that the situation at the company is so bad that CEO, Dave Calhoun, will be stepping down to assist overall improvements in safety standards.

The issues with Boeing planes is causing a degree of anxiety when it comes to air travel, as Boeing makes more than 50% of all airplanes being used by global airlines. In certain locations, like the USA, Boeing actually makes up an even bigger share of the market which means that travelers in those countries are going to feel even more concerned about any upcoming trips.

While transport agencies worldwide are investigating the issues with Boeing planes, it doesn’t make people flying on Boeing aircraft any more comfortable that their trip will go safely – but unfortunately in the modern age, no travel has the guarantee of safety. So, whether you’re worried about a door falling out of the plane you’re on, or a 4-hour delay causing you to miss your rental car pickup at your destination, it is important to understand that you have options.

One of those options is Travel Insurance.

Protecting Your Journey with Travel Insurance

The first thing to understand about Travel Insurance is that, like all insurance, it is not a “preventative” or “cure-all” product. Travel Insurance will not be able to help you avoid all the pitfalls on your journey, but can offer invaluable support in the event of a worst-case scenario.

The second thing to understand is that there is a wide range of choice when it comes to the travel insurance policy that you purchase, and while many off-the-shelf solutions exist, it is possible to tailor a travel insurance plan to meet the exact needs of your trip.

So, let’s start with the pressing question: what type of Travel Insurance policy are you going to need?

Single Trip Travel Insurance vs Annual Travel Insurance

You’ve just booked a trip to the Philippines; you’re leaving Hong Kong for the first time in a year and are spending a week in Boracay. But you want some protection for your trip, in case anything goes wrong, so you’re looking at Travel Insurance.

In this case, with relatively limited overseas travel and a vacation that is relatively short, it would be sensible to obtain a Single Trip Travel Insurance policy. Single trip plans start on the day you leave your home country, or country of residence, and finish on the day you land back in your home country – this makes them effective, targeted solutions for the specific journey you are taking.

Single Trip travel insurance options are priced based on the length of the trip – so longer journeys will require a higher premium. But you are paying only for the time you are traveling, so there is no excess or “leftovers” to worry about, you pay for and receive coverage against claims on a single trip.

Annual Travel Insurance

You’re an account executive at your work, you’ve just booked your 6^th business trip overseas this year. This time you’ll be going to Jakarta for 2 days, and your company says that they will be sending you to the UK to research some potential opportunities next month for another 2 or 3 days.

In this situation, an Annual Travel Insurance plan may be better for your needs than a single trip policy. Setting up and paying for your insurance each time you travel can be a headache if you’re traveling a lot, which makes single trip options unwieldly.

An annual travel insurance plan is normally more expensive than a single trip plan, but will cover as many overseas journeys as you may make during the policy year. The limitation with this type of policy is that the duration of each individual journey is limited – so only trips lasting, typically, 30 days or less will be covered under an annual travel insurance plan.

This means that if you would foresee a trip lasting longer than 30 days, and would like to have that journey covered under a travel insurance plan, then you will normally need to purchase single trip coverage.

Travel Insurance Protection and Coverage

When it comes to the protection you’re going to receive under a travel insurance plan, you also have many options. But travel insurance is generally the name for a policy that has bundled a number of separate protections under the convenience of a single umbrella.

Within the travel insurance market will be some commonly encountered benefits, like health insurance, which are normally included on almost all the travel insurance options currently available in Hong Kong or elsewhere around the world.

Travel Health Insurance Coverage

Almost all travel insurance options available in Hong Kong will include medical insurance as a core component of the coverage. However, unlike most standalone medical insurance policies, which are specifically made to provide protection against the costs of medical treatment, the medical benefits offered under most travel insurance policies will be limited in scope.

In most cases medical coverage on Hong Kong travel insurance products can range from as low as HK$250,000 to well over HK$1,000,000. It is important to note that with this type of protection it is not intended to provide long term care overseas – the coverage is designed to patch you up and get you home to Hong Kong, where it is assumed you will enter the public system or use your Hong Kong Health Insurance for continuing treatment.

It is possible to obtain dedicated medical travel insurance products, which only cover medical concerns while overseas – but these tend to come in return for a much higher cost, and are typically no better than a full-blown International Health Insurance policy.

Baggage and Personal Effects Insurance

Showing up in a foreign land only to find your bags haven’t landed with you is the nightmare of many travelers. And in an age of frequent travel chaos, and seasonal travel spikes, your stuff going missing is a very real concern. With lost luggage incidents recently hitting a 10 year high, you may have a right to be worried.

Travel insurance won’t get your items to you any faster, or make them appear if they’ve been lost, but it will give you valuable financial support to purchase replacements or temporary clothes until your luggage does show up. Further to this, when people travel they often take expensive things like cameras, laptops, and even videogame consoles – which can be risky depending on the part of the world you may be traveling to.

Travel insurance which includes Baggage and Personal effects coverage is able to provide a blanket of protection, giving you the security that no matter if your things are lost, damaged, or stolen, while overseas you will have the financial assistance you need to obtain replacements or repairs.

Delay, Cancellation, and Curtailment Insurance

The final key benefit available on many Hong Kong Travel Insurance plans will be protection against losing irrecoverable and pre-paid deposits in the event of rescheduling of your trip due to reasons beyond your control.

Let’s say you’re on holiday, you’re scheduled to land at 3pm in your destination, plenty of time to get your bags and pick up the rental car. Your departing flight gets delayed by 2 hours, and then when it lands has to sit on the tarmac waiting for a boarding ramp to open up so you can deplane. By the time you’ve arrived at the gate it is 8pm, the rental car place is closed, and you’ve lost your money on the rental because you cannot collect your vehicle.

In many cases, a delay of 5 or more hours is covered under a travel insurance policy. Also covered are forced cancellations for things like Typhoons and Hurricanes, or even risks which prevent you from continuing your trip – like mechanical issues with the cruise ship’s engines.

Delays and Cancellations will still happen, but with a comprehensive travel insurance policy you are not going to financially suffer as a result.

Hong Kong Travel Insurance Advice

Travel insurance should be a straightforward and easy to understand type of coverage, but there are still lots of options and it can get confusing knowing what plan, or benefits, are needed in your exact situation.

CCW Global is able to provide in-depth assistance in helping you find your perfect travel insurance solution. Our expert brokers can offer you a comprehensive analysis of the plans which are best suited to meet your specific needs, with our dedicated support and policy administration teams set up to assist you across the lifetime of any plan you purchase.

For a no-cost, no-obligation consultation to discuss your travel insurance options, please Contact Us Today.

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