July 18, 2024
How to Choose the Right Travel Insurance: An Analytical Guide

Travel broadens horizons and creates unforgettable experiences. But what happens when unexpected events such as illness, accidents or travel interruptions occur?

Carefully selected travel insurance protects against such risks and can help you avoid immense costs. This article provides a brief analysis of how to choose the right travel insurance, with a special focus on Heymondo policies and understanding the small print.

Here is an overview:

Travel Insurance Overview

Before deciding, it’s important to understand the different types of travel insurance that are generally available. According to the Consumer Protection Center, several basic categories require your attention:

  1. International health insurance: Covers medical emergencies and hospitalization.
  2. Travel cancellation insurance: This covers you in case you have to cancel your trip for unforeseen reasons.
  3. Trip interruption insurance: Covers costs if you have to cut your trip short.
  4. Baggage insurance: Protects your baggage against loss, theft or damage.
  5. Accident insurance: Provides financial assistance in the event of an accident while traveling.

With these basics in mind, let’s look at the options Heymondo offers.

How to Choose the Right Travel Insurance: Compare Policies

Heymondo is characterized by flexible and comprehensive travel insurance solutions that can be adapted to the needs of different travelers.

They offer three main categories: Single-Trip, Annual Multi-Trip and Long-Stay insurance policies.

And it can be handy to have an insurance, who offers a 24/7 medical chat. The Medical Chat gives you peace of mind 24/7 while you travel. A team of doctors is just a message away in the app, ready to answer all your questions immediately. Send documents and images for immediate support and get expert advice on the best course of action in any situation.

Here’s a breakdown of the different travel insurance options:

1. Single Trip Insurance

The Single Trip insurance is specially designed for one-off trips and provides comprehensive cover for short and medium-haul trips.

  • Sum insured: Covers medical emergencies up to a maximum amount specified in the policy.
  • Benefits: Includes emergency repatriation, hospitalization, trip cancellation and baggage protection.
  • Cost Factor: This insurance is comparatively inexpensive and is designed for occasional travelers.

Example of a claim:
Anna from Munich is planning a one-week trip to Spain. Shortly before departure, she suffers acute appendicitis and needs an operation. Thanks to Heymondo’s travel cancellation insurance, she is reimbursed the full cancellation costs for her trip and has no financial disadvantages.

Heymondo - Machu Picchu, Peru
Heymondo – Machu Picchu, Peru
Alhambra in Granada, Spain.
Alhambra in Granada, Spain.

2. Annual Multi Trip Insurance

An Annual Multi-Trip Insurance is the ideal solution for frequent travelers. This policy covers multiple trips within one year, with each trip having a maximum duration of 60 days.

  • Sum insured: Increased amounts of coverage compared to single trip insurance, which can cover higher costs.
  • Benefits: Includes all the benefits of Single Trip plus additional benefits such as recreational and sports cover.
  • Cost Factor: Higher initial cost, but economical for people who take several trips a year.

Example of a claim:
Markus from Hamburg is a business traveler who attends international conferences several times a year. On a trip to New York, his luggage is lost during the flight. Thanks to Heymondo’s baggage insurance, he receives compensation for the loss and can easily re-equip himself at his destination. Markus had to report the incident to the airline and Heymondo within 24 hours and provide the relevant receipts.

Heymondo - Skyline NYC
Heymondo – Skyline NYC
Yellow cab in New York City, USA.
Yellow cab in New York City, USA.

3. Long Stay Insurance

Long Stay Insurance is designed for travelers who want to spend an extended period of time abroad, whether for a sabbatical, a semester abroad or a work-and-travel adventure.

  • Sum insured: Very high amounts of coverage to accommodate an extended stay.
  • Benefits: Comprehensive health cover, including medical check-ups and emergency evacuation.
  • Cost Factor: Higher-priced due to broader benefits and longer coverage period.

Example of a claim:
Lisa from Berlin is planning a semester abroad in Australia. After a few months, she develops severe toothache and needs emergency treatment. Heymondo’s Long Stay insurance covers the treatment and medication costs in full. Lisa had to submit a cost estimate and medical diagnosis before the treatment costs were approved.

Heymondo - Treasury in Petra, Jordan.
Heymondo – Treasury in Petra, Jordan.
Kangaroo in the Australian Outback.
Kangaroo in the Australian Outback.

Annual Travel Insurance: Why They Might Pay Off From Just One Trip

When does it make sense to take out annual insurance, and what advantages does it offer compared to individual insurance if you only travel once a year?

With most insurers, it’s actually worth taking out insurance from just one trip a year. The prices for annual insurance are often even lower than the price of individual insurance. Why is that? Of course, insurers want to win long-term customers.

From my point of view, the customer actually only has advantages if he disregards the cancellation. Basically, you don’t want to cancel an annual insurance policy all the time.

The advantages are:

  • You can spontaneously take as many vacations a year as you like. Because from the second trip, even if it’s only a short trip, the annual insurance might have already paid for itself. The more vacations you take, the lower the percentage per trip will be, of course.
  • You never have to worry about whether you have taken out the insurance in time because you are insured permanently.
  • Domestic trips (> 50 km from home with at least one overnight stay) are usually also included in the annual insurance policies. Very few people would take out individual insurance for this, especially if it’s only 200 km away.

The only thing you should remember is to check your sum insured. For example, if you have taken out annual insurance up to EUR 4000, but are now planning a more expensive trip, the amount must be increased, otherwise you will be underinsured.

Road trip - Road through a forest in autumn.
Road trip – Road through a forest in autumn.

The Importance of the Fine Print in Travel Insurance

Now that we’ve discussed the different policies, let’s move on to one of the most important aspects of buying travel insurance: the fine print.

The small print often contains critical information that can be easily overlooked, but is of the utmost importance in the event of a claim.

1. Sums Insured and Benefits

  • Medical costs: Make sure you have sufficient coverage for medical emergencies, especially when traveling to countries with high medical costs.
  • Trip cancellation and curtailment: Check the specific events that are covered. Often, only certain reasons, such as illness or death of a close relative, are covered.
  • Baggage: Find out the terms and conditions of baggage coverage and what you need to prove in the event of a claim.

Example of sums insured:
Stefan from Frankfurt falls ill with severe flu on a trip to Japan and has to go to hospital. His insurance covers medical emergencies up to a sum of 500,000 euros, which covers all treatment costs.

2. Exclusions and Limitations

Many insurance policies have specific exclusions. These may include sports and leisure activities, pre-existing medical conditions or failure to follow safety precautions.

Example of an exclusion:
Thomas from Cologne is a passionate climber and is planning a climbing tour in the Alps. However, his standard insurance package excludes dangerous sports such as climbing. An accident during the tour would therefore not be covered. Thomas would have had to take out an extended policy that includes such activities beforehand.

3. Deductibles

Deductibles are the amounts you are responsible for in the event of a claim. Deductibles can vary and have a direct impact on the amount of your benefit. Deductibles may vary depending on the type of claim (e.g. higher amounts for medical expenses than for baggage loss).

Example of a deductible:
Julia from Stuttgart is on a trip to Thailand when her smartphone is stolen. She has travel insurance with an excess of 100 euros for property damage. The value of the stolen smartphone is 500 euros. Julia is therefore reimbursed 400 euros by the insurance company.

4. Terms and Conditions

Please note the conditions for claiming benefits. Official or medical verification is often required. Time limits for reporting a claim may also be important.

Example of necessary proof:
Stefanie from Munich falls ill on a trip to Brazil and needs medical treatment. She must provide the insurer with a medical certificate and receipts for the treatment costs in order to be reimbursed. Without these documents, the claim could be rejected. With Heymondo, Stefanie was able to ensure that the necessary evidence was provided and the costs were reimbursed quickly.

The perfect luggage combination for digital nomads and other travelers.
The perfect luggage combination for digital nomads and other travelers.

Credit Card Travel Insurance: What You Should Look Out For

Many people already have travel insurance included in their credit card. But, what is the difference between this and the travel insurance products offered by independent travel insurers?

The travel insurance included in credit cards often has many conditions, deductibles and caps for insured events. In addition, often only people traveling with you count as risk persons and not parents or siblings at home. With the best insurers, the definition of risk persons even extends to nieces and nephews at home. Even relatives of your partner are insured at home with the best insurers. If you, as the cardholder, leave early for an insured reason, you are often the only one who can claim the trip interruption benefit. Your fellow travelers must bear the additional costs themselves or stay on site.

In addition, with many providers, all expenses must have been made with this credit card.

As you can see, the credit card insurance conditions are tricky, and you will notice this at the latest in the event of a claim. Although credit card providers have made some improvements in the meantime, there are still many loopholes. It is important to read the terms and conditions carefully.

Personally, I have a credit card with travel insurance cover, but that’s not the main reason why I have this card.

I mainly use it to pay abroad, as I find the many exclusions and conditions of credit card insurance too complicated and the excesses too high.

I always use my separately purchased annual insurance without an excess, so I never have to worry about whether and how well I’m covered.

A person holding a phone, who is paying with the credit card.
Pay with your credit card.

Ready to Get Travel Insurance?

The process of choosing the right travel insurance may seem complex, but it is well worth the time and effort.

Whether you’re taking a short trip, are a frequent traveler or a long-term adventurer, Heymondo’s flexible policies offer tailored options for every type of traveler.

Choose comprehensive coverage to be prepared for any situation.

Always read the fine print to avoid unpleasant surprises. Check the limits, exclusions, deductibles and evidence required to make sure the policy will do what it says when you need it.

A careful comparison and thorough reading of the terms and conditions is the key to a worry-free trip.

This will allow you to focus on what matters most: discovering the world and experiencing new adventures.

  • Heymondo

    In a world that’s always on the move, we’re here to make sure that when you travel, you can fully immerse yourself and enjoy every moment.

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    In a world that’s always on the move, we’re here to make sure that when you travel, you can fully immerse yourself and enjoy every moment.

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