Insurance with franchise: for those who prefer to save

In fact, insurance is a very important point of safety and comfort on vacation. It is a policy that gives tourists the right to receive the necessary medical care abroad. However, very often travelers do not pay due attention to all the nuances concerning their own safety, and in vain – health insurance is often a vital document on the trip. In addition, other types of insurance help to avoid serious problems in traveling.

 

Anyone planning to travel abroad should know that health insurance is voluntary. The exception is visiting countries with a visa regime: without a policy, it will be impossible to obtain a document. At the same time, insurance is usually already included in the ticket price in advance.

 

Travel insurance can be three options. Category "A" is relevant for countries where the need for insurance of tourists is not legally fixed (for example, Egypt or Turkey). This insurance is an average of 15 thousand euros and can only reimburse the costs of medical care and transportation.

 

That is, if a tourist suddenly falls ill or gets injured, then he will necessarily be provided with emergency medical care and sent home by special transport, if necessary. To pay for such insurance, tourists will have an average of $ 1 for each day of stay abroad. However, it should be borne in mind that the insurance category "A" does not include compensation for moral and material damage, and if your tour does not take place or ends prematurely, you will not be able to return money for spoiled vacation.

 

More expensive options are insurance policies of category B and C (from 30,000 euros or more). They allow, for example, free treatment of a sick tooth or get help for a cold or a bite of a local exotic insect.

 

If you have such insurance, then in case of a sudden illness or accident, you can claim full treatment from transportation in an ambulance to compensation for telephone conversations with insurers. It costs a little more than a standard policy, but in case of an unforeseen situation it guarantees the provision of necessary medical services right at the place of stay.

 

In addition to health insurance, there are additional programs that can protect travelers. For example, if you are going to rent a vehicle, you can order civil liability insurance. If you are afraid of losing your luggage during a flight or transfer, you can insure it against loss. Tourists who prefer active rest, you can choose accident insurance with an extended program. If you go to a country with a visa regime, you can get insurance against not leaving (here it should be noted that most often it is already included in the price of the tour package).

 

A franchise is a contract between an insurance company and a tourist. This agreement guarantees the traveler’s willingness to reimburse a certain part of the costs if an insured event occurs, and travel companies provide substantial discounts on franchised policies in return.

 

A policy with a franchise can cost 20-30% cheaper than the standard. This is due to the fact that such a contract is beneficial to both parties: the tourist saves significantly, and insurers reduce claims for minor cases and thereby reduce losses. But it should be understood that if necessary, treatment from the insurance payment will be deducted a certain part.

 

The franchise works as follows: when an insured event occurs, the tourist undertakes to pay a certain amount or interest specified in the policy. If an unforeseen situation occurs, the tourist pays the cost of the franchise, and the remaining costs are covered by the insurance company. This is the benefit: the traveler saves on insurance, and if he gets into trouble, he will need to pay very little.

 

There are dozens of franchises, but only three are used in travel insurance.

If the traveler pays a conditional deductible, then he will not have to pay for medical care, provided that the cost of treatment is higher than the price of the insurance policy. For example, if the deductible is $ 100, the tourist with a bill of $ 60 will pay for insurance, and with an account of $ 130, the loss will be covered by the insurance company. This franchise is the most profitable, but Russian insurers do not currently practice it.

 

Unconditional franchise is considered the least unprofitable: if a tourist gets sick, then he will in any case have to pay for part of the treatment. But you can save more here – these policies are the cheapest.

 

Dynamic franchise has no fixed value, so with each subsequent insured event, payments on it become less – from 100% in the first case, to 80% in the third, etc.

 

If you are confident in your health or hope that nothing bad will happen to you, and at the same time still want to save a little – then a policy with a franchise is quite suitable for you. However, remember that when visiting some countries, insurance must be without a franchise, but when visiting countries where a visa is not required, a tourist can choose the type of insurance himself.

 

Before choosing an insurance policy, carefully study the contract, because the conditions of insurance for different companies may differ.