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How does travel insurance work? |
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Let us suppose that you pay £100 for your travel insurance and you have a bad accident. This leads to £300,000 of medical expenses. Does your travel insurance policy pay for it?
As long as you are 'covered' for such an accident then your travel insurancy policy should compensate you. Travel insurance companies sell many travel insurance policies and most travellers do not claim. For example, if 50,000 travelers pay £100 they stand to take £5 million. If total claims reach £4.5 million then the travel insurance company makes half a million pounds profit. The travel insurance companies also have insurance, so that even if there are an unusually large number of claims for a given period - you always receive financial help.
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