Travel insurance sounds simple until you read the policy and realise the cover is a set of separate pieces, each with its own limit, excess and conditions. Understand the four main blocks and the exclusions that sit around them, and most of the surprises disappear. As a companion, see the different policy types available if you have not decided which shape to buy.
Overseas medical cover
The medical block is usually the reason people buy travel insurance at all. It covers emergency medical treatment you need while overseas, including hospital stays, doctors and in some cases emergency transport or evacuation back to NZ. This matters most in countries where you would otherwise pay large medical bills directly.
Three things to check in this section of the wording:
- The medical limit. Policies cap how much they will pay. Compare the ceiling, not just the fact that medical cover exists.
- Pre existing conditions. Cover varies by policy. Some include them, some exclude them, and most require disclosure; an undisclosed condition is a common reason claims get declined.
- Attention before stabilisation. Some policies only cover treatment you receive once a condition is stabilised, or require you to contact them first. Read how emergency care is triggered.
Trip cancellation and delays
Cancellation cover reimburses prepaid, non refundable costs when a covered event stops the trip from happening. This is not a change-of-mind product. It responds to specific situations in the wording, commonly the sudden illness or injury of the traveller or a close family member, and certain unforeseen circumstances.
Travel delay cover works alongside it, typically paying some daily costs if transport is delayed past a set period, and trip interruption cover can step in if an event cuts a trip short. The trigger events are tightly defined, so check exactly which circumstances the policy counts as covered before you rely on them.
If a covered event looks likely, most policies expect you to contact them early and to take reasonable steps to reduce the loss. Waiting until the situation is worse can weaken the claim. Read the notification requirements in the wording.
Lost and delayed baggage
The baggage block covers the cost of personal belongings that are lost, damaged or stolen on a trip, subject to a limit and an excess. Delayed baggage cover pays for essential items if checked luggage is held up for a set period, usually a number of hours. Two practical points:
- Document the loss. For stolen or delayed items you usually need a police report or a written report from the airline, and receipts where possible.
- Check what counts as baggage. Some policies cap high value single items or exclude them unless separately declared, and limits differ between items in your luggage and items you are wearing or carrying.
The exclusions to check first
Every policy carries exclusions, and they do more to shape the real cover than the headline limits. The ones that trip most people up include:
- Alcohol and drugs. Claims linked to events that happen under the influence are commonly excluded or reduced.
- Reckless behaviour. Many policies exclude or limit claims arising from actions deemed risky, such as ignoring safety warnings.
- Adventure and extreme sport. Activities like skiing, diving or skydiving are often excluded or given their own extra premium and higher excess.
- Undisclosed medical conditions. A condition not declared in the application can void the related cover entirely.
The fuller picture on exclusions and what happens when you claim is in the companion guide on how claims work and common exclusions. Read that before you assume you are covered.
One last point that quietly changes the real value of any of these blocks: the excess. The excess is the amount you pay yourself before the policy pays, and it is often different for each type of claim. A policy with modest limits and a high excess can end up doing very little for a small or mid size loss, even though it looked fine on paper. When you compare, do not stop at the headline limit: check the limits against the likely cost of the medical and cancellation events that matter to you, and factor in the excess for the claims you are most likely to make, such as lost or delayed baggage.
Travel cover is four separate blocks, each with its own limits and conditions: medical, cancellation and delays, and baggage. The value is set as much by the exclusions as by the headline cover, so read the wording, declare pre existing conditions and risky activities honestly, and buy the cover that matches the trip you are actually taking.