Purchasing travel insurance should never be a five-minute job. Sign-up for an agreement without careful consideration of your personal needs and planned activities, and you could end up travelling without sufficient cover or paying more than is necessary. Below we’ll answer the question ‘what is additional premium travel insurance?’, and detail the important considerations travellers need to make before agreeing on any policy.
● What is a travel insurance premium?
● How is a travel insurance premium calculated?
● So what is additional premium travel insurance?
What is a Travel Insurance Premium?
A travel insurance premium is legal speak for the cost of a travel insurance policy. As anyone who has done a little research will know, travel insurance is not a ‘one-size-fits-all’ purchase. Different policies come with different premiums.
Travel insurance should be tailored to individual needs and circumstances. Anyone considering travel insurance should be sure of what they need and pay a premium solely related to these factors.
How is a Travel Insurance Premium Calculated?
It’s worth knowing that travel insurance costs are not affected by your claim history, unlike many other forms of insurance. Instead, a premium is based on multiple other factors:
Age is a factor, as older travellers are deemed at a higher risk of falling ill or having an accident. GasanMamo covers individuals up until the age of 80, and age affects many different types of insurance for the same reason. However, sometimes it’s a role reversal.
For example, car insurance is usually higher for younger drivers who have just passed their test. Older, more experienced drivers often pay less.
● Pre-existing medical conditions
Long-term health conditions can affect your premium as well. Those with pre-existing conditions often carry a greater risk of being affected by illness whilst away. Not to mention potentially needing emergency medical treatments or medication. It’s essential to declare any health conditions to be covered should anything untoward occur.
One traveller who failed to declare a prescription had to pay hospital fees of more than £30,000 after falling ill.
Some destinations carry larger risks for the traveller than others. There may be more significant crime threats, more likelihood of freak weather or political unrest, and bigger dangers to health in certain parts of the world, and a premium will consider all this. Premiums can also be affected by costs abroad. For example, the United States has the most expensive healthcare system in the world.
● Dangerous/sporting/adventure-type activities
A beach holiday in mainland Europe will generally carry less risk than a trekking trip through the Amazonian rainforest, and such factors affect some premiums. Likewise, if you plan to participate in extreme sports, you must advise your insurer in advance. If you don’t, you risk your claim being denied should anything go wrong. Before you book your travel insurance policy, you must understand the full terms and level of coverage. This is because some companies, like GasanMamo, do not offer cover for dangerous sporting activities.
So What is Additional Premium Travel Insurance?
An additional premium is an extra cost on top of your standard cost, which gives the traveller additional benefits or cover. Additional premiums may be imposed due to high-risk factors or chosen by a payee for additional cover and peace of mind.
Whilst it’s advisable to research before taking your holiday and then taking out a policy that matches your needs, it may be possible to pay an additional premium mid-trip, should your circumstances change.
For instance, you may have planned to do little more than tan on a beach for seven days. Once there, you suddenly fancy trying your hand at kite surfing. Your existing travel insurance terms may not cover some activities. Essentially, it pays to speak to your advisor mid-holiday if any plans change.
You should inform your insurer of any shift in circumstances during your trip, however trivial and risk-free they may appear at first. You could decide at short notice to cross a country’s borders for a day trip – legally, of course. The second country you visit may be classed at a different risk level than those found in your principal destination.
For example, one country may be more prone to natural disasters. This could include a higher chance of earthquakes or volcanic activity than in a country adjacent to it. Likewise, those planning to visit multiple countries may require tailored coverage or backpacker insurance, which only some travel insurance companies offer.
GasanMamo additional premium travel insurance
Our travel insurance comes with many benefits as standard, many of which are considered an ‘additional premium’ by other insurers. For example, our standard cover includes Covid-19 insurance for cancellation of a trip and any additional travel or alternative accommodation needed should you catch Covid whilst away.
Other great benefits included as standard are golfing cover, excess cover for renting vehicles, and pet care cover. You’ll also benefit from emergency medical expenses, including a cash bonus, should you need to go to the hospital.
Travellers can be covered for cancellations due to natural disasters or adverse/extreme weather conditions for an additional premium. For an additional premium, you can also benefit from an excess waiver, cover for winter sports’ equipment and the likes of a piste closure, plus a higher level of personal accident benefits.
It really pays to do your research when it comes to booking travel insurance. A policy that matches your needs and individual circumstances will cover you for any opportunity and ensure that you won’t be paying for anything that you don’t need. Not all travellers need additional premium travel insurance, but it’s still a vital consideration for many and one that needs careful consideration before any policy is agreed upon.
To start, look at our competitive and comprehensive benefits, optional extras, and annual offer on our travel insurance page.
GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.