As I posted yesterday, I have been over in the United States over the past month and during that period I had to hire a car twice. The first time they asked if I wanted to buy down the deductible and I said no, I have travel insurance for this.
As part of our corporate travel cover we have A$5,000 which is more than enough for any rental agreements I have seen in Australia.
The second time, I needed the car longer but just to be sure I mentioned I had $5,000 cover and I was then told the self retention was US$17,500. My first thought was how could it be so high, the second was thank goodness I did not have an accident with the first vehicle.
Morale of the story is double check the self retention of any hire car, in any country and pay the extra for the buy down if you do not have sufficient coverage under your own travel insurance.
Also, like an insurance policy, a hire car contract is a legal document and you should read it before you sign it so you are not caught!
I thank my lucky stars I wasn’t.
Following my article yesterday about the increase in security at the airport due to terrorism, I can see that others are thinking the same way as per the article shared with me here.
Airline passengers undergoing a security check
“New provisions from the UK government means that those travelling to the UK on a flight originating from any country on the banned list will not be permitted to bring personal electronic devices (PEDs) larger than 16cm in length, 9.3cm in width and 1.5cm in depth (or thickness) into the cabin, needing to place these items in their checked luggage instead. The US does not give specifications for the PEDs banned from flights but requires any device larger than a cell phone or smartphone to be placed in checked baggage.”
It is not uncommon for a Travel Insurance Policy to exclude damage to “Luggage and Personal Effects” that are checked into cargo hold. However, with recent bans being put in place by the US and UK whereby flights to certain Middle Eastern countries have banned any PED’s in any carry on luggage, forcing travelers to check in these devices to the cargo hold.
One such exclusion is worded as follows:
your valuables or their accessories are checked in to be transported in the cargo hold of any aircraft, ship, train, tram or bus (including any loss from the point of check in until collection by you from the baggage carousel or collection area at the end of your flight, voyage or trip);
What does this mean for the Policy holder, forced to check in their items?
Section 54 of the Insurance Contracts Act states that the insurer may not refuse to pay claims in certain circumstances, including where:
- The act was necessary to protect the safety of a person or to preserve property.
- It was not reasonably possible for the insured or other person not to do the act.
If the airline gives you no alternative other than placing the device in checked luggage, then Section 54 of the Insurance Contracts Act should prevent the travel insurer from rejecting your claim on those grounds.
A list of countries affected by the ban for both the US and UK can be found here: https://www.finder.com.au/us-and-uk-in-cabin-laptop-ban
Travel Insurance – Do not leave home without it
WAtoday.com.au has warned consumers that the airlines are marking up the cost of travel insurance by a significant amount. The article I refer to can be found here.
I have written a great many articles on the pitfalls of travel insurance over the years and my advice remains unaltered.
This advice is as follows:
The cover is important to have regardless of your age.
You need to answer any questions, particularly on pre-existing illnesses and injuries honestly.
The covers offered are not the same and you should carefully review the coverage on offer compared to your own needs and risk appetite.
If you have any doubt please speak with a licenced and experienced general insurance broker who will provide advice on the most appropriate cover for you.
Perhaps with more than any product or service insurance should not be purchased on price alone. It is the quality and breadth of the coverage, the service offered should an event occur and the overall claims service that is paramount when a loss does occur.
Well, it has been a few weeks now since the launch of the LMI Group YouTube channel. I am pleased to say that it is going great for the team, the videos are a hit and very educational. The aim of demystify insurance jargon helps assist the public to better understand the insurance products that they will encounter and most likely have to purchase at some point in their lives.
Steven, the face of the YouTube series, has been working very hard with our Media Manager, Andrew to bring these episodes to you each week and we are glad that you are enjoying them.
Please make sure you check out all the videos here!