When you go on holiday to Thailand, it is important to see if you Travel Insurance is tailored to the journey you are going to undertake. Many Dutch people do not do that and mainly look at the price and whether they get a package discount when taking out travel insurance.
Money wiser therefore calls on holidaymakers to always check whether they are properly insured when traveling and helps them on their way with the accessible tool 'Check your holiday insurance policies'.
Travel insurance is for emergencies
Ultimately, the most important parts of a travel insurance policy are coverage for major costs due to illness or an accident. This concerns costs for rescue operations, medical costs and repatriation. But not every travel insurance policy includes this coverage. Medical costs often have to be insured separately and a separate cover must be taken out for a trip outside Europe or doing an extreme sport.
The Dutch look at price and package discount
Representative research carried out by Money Wise shows that 25% of Dutch people select travel insurance mainly on the basis of the price and 21% mainly on the package discount they receive because they also have other insurance policies with an insurer.
'Tendency to only look at price typical human behavior'
According to emeritus professor of economic psychology Fred van Raaij, member of the program council of Money Wise, the tendency to only look at the price is typically human. “It's automatic. Do we have travel insurance? Yes, then it's good. But you accept too quickly that it is all right, while there are many exceptions in the policy conditions. You should go through it all but most people don't. It is our limited rationality. We are rational in the sense that we want to choose something good, but we don't want to go through all the details.”
Risks from behavioral science
From a behavioral perspective, short-term and continuous travel insurance both carry their own risks. Short-term travel insurance is often taken out quickly shortly before departure. The price is often the deciding factor in the choice. Comparison sites facilitate this because they mainly compare on price.
Also with continuous insurance
The comprehensive travel insurance leads to the risk that the holidaymaker does not check whether the holiday he is going to make is covered. An example is a consumer who travels to the United States without medical coverage and ends up paying most of the costs himself when he ends up in the emergency room.
Tool 'Check your holiday insurance'
76% of the Dutch have travel insurance. It is an insurance policy that can prevent a lot of misery at relatively little cost. But the diversity of the offer means that there is a risk of traveling with the wrong insurance. Wise in money matters therefore helps consumers with the tool 'Check your holiday insurance'.