Travel Insurance with Expanded Coverage... A 'Must-Have' for Travelers

As more people travel abroad during the Chuseok holiday, interest in travel insurance is also growing.

According to the "2024 Chuseok Holiday Overseas Travel Intention Survey" conducted by Incheon International Airport Corporation from the 1st to the 7th of last month targeting 1,270 Korean nationals aged 18 or older who have traveled abroad through Incheon Airport within the past five years, 11.2% of all respondents said they plan to travel overseas during the holiday. This is the highest figure since the first survey was conducted in 2020. Incheon Airport Corporation expects more than 1.2 million people to use Incheon Airport from the day before until the 18th. This averages about 201,000 people per day, the highest number ever recorded during Chuseok.

Purchasing travel insurance can be helpful to cover damages caused by accidents occurring during domestic or overseas travel during the Chuseok holiday. Travel insurance compensates for injuries, illnesses, theft, and liability damages that occur during travel. It also covers damages caused by flight delays and cancellations, loss or damage of checked baggage and personal belongings, and delivery delays.

Travel insurance is broadly divided into short-term and long-term plans. Short-term travel insurance is recommended for trips planned for three months or less. Since short-term insurance premiums are cheaper, it is important to carefully check the coverage items needed for a short trip. Long-term travel insurance is more expensive than short-term but offers broader coverage. It is suitable for those going on long trips or studying abroad.

Those with indemnity insurance should be cautious about double coverage when purchasing overseas travel insurance. If an indemnity insurance holder adds domestic medical expense coverage to their overseas travel insurance, they will bear the premium cost twice. Therefore, it is necessary to check for overlapping domestic medical expense coverage before purchasing travel insurance. This can be verified through the Financial Supervisory Service’s fine “My Insurance Overview” service.

Since it is difficult to receive compensation immediately on-site if a problem occurs overseas, it is advisable to keep all related documents. For example, if theft occurs, a theft report should be filed at the police station and a theft certificate obtained. If treated at a local hospital, be sure to keep the diagnosis, receipts, and prescriptions.

Due to the recent increase in demand for travel insurance, insurance companies are also strengthening their services one after another. It is recommended to compare company services and choose a product that suits you. KakaoPay Insurance expanded the subscription period for overseas travel insurance from the previous one month to up to one year on the 4th. KakaoPay Insurance’s overseas travel insurance, launched in June last year, caused a sensation in the insurance industry, surpassing 1.8 million cumulative subscribers in just one year and three months. This year alone, an average of 150,000 people have used it monthly. Going forward, users can customize their coverage by adding or removing desired protections according to their travel period, from a minimum of one day to a maximum of one year, with personalized optimal pricing. They also offer a service that refunds 10% of the premium upon safe return from travel. Carrot Insurance offers a 3% discount if subscribed at least seven days before departure. There is a 10-20% discount when two or more people subscribe together. Carrot Insurance also refunds 10% of the premium as Carrot Points to those who return safely without accidents.