Travel Insurance for Backpackers
Backpacker travel insurance differs from standard travel insurance in a number of ways. Firstly it will cover you for a longer period of time, perhaps up to 18 months from the departure date. Secondly, it should cover you for activities that standard insurance policies do not. For example, scuba diving, bungee jumping, skydiving, trekking etc.
From experience, it is not something you should decide to skip on just to save money. Travel insurance can be expensive, however by shopping around an examining the small print, the savings can be fairly substantial. Also remember that in some countries (for example the UK), insurance products come with a “cooling off period”, which entitles you to cancel within 14 days if you change your mind.
Good reasons to buy travel insurance
Your Health is important
Your own health is certainly not something you should put at risk, so emergency medical cover is probably the single most important part of a backpacker insurance policy. This will cover you for any costs you have to make in the event that you need medical attention.
Up to half of all travellers suffer illness or become injured while they're away. "Delhi belly" is a common problem for backpackers, but the very nature of backpacker travel puts you more at risk to other health issues compared with simply staying at home.
Activities such as scuba diving, trekking or bungee jumping put you more at risk of injury, but a good backpacker insurance policy should cover injury while taking part in activities like this.
Ensure the policy will also cover you for medical emergency rescue, so that if you need airlifting out of a remote location it will be done.
Your belongings are valuable
For many backpackers it’s a trip of a lifetime, so expensive cameras are great to record your travels for the future. Unfortunately cameras and personal music players are high value items and can be attractive to a thief.
Also, backpackers generally travel on a budget staying in shared accommodation. This obviously leaves your belongings open to theft, as it is simply not possible to be with your backpack 24-7.
The risk also applies when travelling on transport – many forms of travel require your backpack to be stored away from the passenger while in transit. Air, bus and taxi transport all put you at risk of having your backpack stolen.
Although you should avoid carrying large amounts of currency with you, ensure that the policy covers you in the event your money is stolen. Insurers will usually only pay up to a certain limit however, but travellers cheques can usually be cancelled and then reissued.
Most insurance companies will only pay out on a theft claim if you reported it to the local police at the time. Look out for any clause of this nature in the policy wording.
Airlines have delays and lose luggage
Most travel policies also cover you for a delayed departure, though this usually only comes into effect after a set period of time. Check the small print carefully before you buy.
In the event that your luggage is lost, there is usually an amount of money that you can claim back for the items you had to buy before your bag was recovered. This again is usually limited to a set amount, so check the policy wording carefully.