How Travel Insurance Works?

LAnyFurtherDiscount on 29/08/2023 - 12:52

Hi experts,

I heading to Europe in December for 2 months and a lot of trains and flights booked. Got insurance from my credit card westpac. Never have travel insurance before, wondering how does it work?

Let's say, flight got cancel by the airlines. Do I out of pocket to book another airlines then insurance pay me back that amount? Scenario I paid for ryan air (low cost), it got cancelled, (woops shouldnt be jinxed it) then i book british airways ON THE SPOT, AT THE AIRPORT with my own money for €200, will travel insurance pay me back that €200? Do they care that I booked low cost and "self upgrade myself to BA full services? Will they find an excuse then refuse to pay me €200?). How about my ryan air monies or credit? Do I keep them myself and hand back to the insurer?

Similar to scenario above, flight cancelled and no other option until next day. Out of pocket for hotel stay overnight. Will they care you stay in a fancy 5 stars hotel or trash airport hotel? Will they find an excuse to refuse your claim?

Thank you thank you thank you

Travel Insurance Travel Insurance

Comments

  • bobbified on 29/08/2023 - 12:55
    +5

    The first thing you should do is read the PDS applicable for that insurance cover. That will tell you what's covered and what's not.

    • AnyFurtherDiscount on 29/08/2023 - 13:57
      -1

      I did read and go through the entire PDS. They all give out general information. My questions were very specific and only the calling up to find out is the only option?

  • JimmyF on 29/08/2023 - 13:36

    Never have travel insurance before, wondering how does it work?

    Read the PDS for what is covered, how it works, what the delay times are etc. As all policies are different.

  • ryefig on 29/08/2023 - 13:51

    I've read the PDS as I had a similar thought and I think you might be covered:

    Section 2.1 Cancellation: • your arranged travel is cancelled or delayed by the carrier because of mechanical breakdown of your means of transport, riots, strikes, civil commotion (but not an act of terrorism), weather conditions or natural disasters:

    If you reschedule your travel arrangements at the earliest possible opportunity after the unexpected event listed above, we will at our option pay for either:
    a] any part of your travel and accommodation arrangements scheduled to be used during the period of cover available for your journey, (for which you have previously paid but are unable to use and are non-refundable) that you have rescheduled; or
    b] the cost of a higher class of travel on the same type of means of transport scheduled to be used during the period of cover available for your journey, or increased seasonal rates for travel, if that is the only class or rate available.
    We will pay these costs minus the amount of any refundable part of your travel arrangements that you rescheduled

    The definition of higher class of travel is probably intentionally vague. Does 'higher class' mean class on a plane (business class vs economy) or class of carrier (budget airline vs full service). If you contact them, be sure to let us know !

    • AnyFurtherDiscount on 29/08/2023 - 14:02
      -1

      Yes I did read and went through the entire PDS and comes to this "higher class" but I assumed "eco class vs business class". They did not mention :low cost vs full services"

  • nephilim on 29/08/2023 - 13:58
    +1

    Most agencies just resell insurance from hollards or another company, so it's all web forms after the incident. Most companies like budget direct have excess fees of $500, so they barely pay anything.

  • mskeggs on 29/08/2023 - 20:24
    +3

    If you act as if you would were it your money, you will generally be ok.
    So if there is a budget flight 10 mins after the full service option they would be pretty dark on you spending more than necessary, but if it is the only option until tomorrow, you would be fine.
    In that sort of situation I would seek to take the cheapest option that still gets me there in time for my other plans/accommodation/onward travel etc.

    • 87percent on 30/08/2023 - 19:11

      Yep agree with this. Don’t expect the insurance to pay for your upgrade to 1st class, and take into account the excess you will need to pay

      I’ve used insurance once when my kid got sick while in the US. Cost nearly $500 to see the “low income” doctor, and the medication (god bless USA). After the excess was paid, still cost $150 out of pocket

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