Complete Travel Insurance Guide
by John Claeys
Do you have plans for Summer travel? The summer is the most popular season for destination-traveling among US residents. This may be due to Summer Vacation that most schools employ in the US. Also, the weather is less-likely to affect travel conditions.
Many things can happen before your departure or when traveling. You can fall sick, for example, and have to cancel your trip. You could lose your baggage, or your possessions can be damaged while on a trip.
Such incidences can be frustrating, and they can cause considerable monetary loss. Travel insurance provides a financial safety net to ease the pain of travel interruptions.
Many companies that sell travel packages and tickets allow their customers to purchase travel insurance. Some policies can even extend coverage to rented property like cars.
Read on to learn more!
Types Of Travel Insurance Coverage
Travel insurance protects you against various risks. The following are the most sought after types of coverage.
Trip Cancellation Insurance
Trip cancellation or trip interruption coverage compensates for prepaid non-refundable travel expenses. Insurance companies vary on acceptable interruption or cancellation grounds. Some of the satisfactory reasons include illness or demise of a loved one, bad weather, and unexpected business problems.
Baggage And Personal Effects Coverage
This coverage protects stolen, lost, or damaged possessions during a trip. Even though most airlines and carriers pay when they are at fault, compensation is often inadequate. Personal effects insurance offers additional coverage.
Medical insurance can help locate doctors and pay for medical expenses. The price depends on the package chosen and the provider. Some policies can cover medical evacuation, airlift to a medical facility, and extended stays in hospitals.
Accidental Death And Flight Accident Coverage
Travel accidents can cause severe injury, disability or even death to the insured or a family member accompanying the traveler. In such cases, the surviving beneficiaries can receive benefits.
If you have life insurance, you may not have to buy accidental death coverage. However, your beneficiaries can enjoy two payouts if you secure both policies.
Tips for Choosing Travel Insurance
Selecting a travel insurance package can be confusing due to the many types of coverage it includes. If you aren’t careful, you can buy needless coverage making your policy more expensive than necessary. Below are some travel insurance tips to guide your buying decisions.
1. Understand The Types Of Travel Insurance
Travel insurance has many components, some of which we have already discussed. Most insurance companies offer bundled packages consisting of several covers.
Assess your needs and protect what matters. If you need medical coverage, for instance, it should come before personal effects coverage. Still, you need to choose between short term and major medical coverage insurance.
2. Protect What Is Worth Worthwhile
You don’t need to buy insurance for every trip. If the potential risk in flight cancellation is a few hundred dollars, travel insurance may not be necessary. Conversely, it’s worthwhile to protect a vacation worth thousands of dollars.
3. Get Cover When Booking Your Trip
You can buy travel insurance a few days to your trip, but it doesn’t work all the time. For instance, a trip cancellation insurance won’t cover you if you buy the policy after falling ill. It’s advisable to purchase insurance when booking your travel.
4. Age And Health Matter
The state of your physical health is a critical factor in determining the premiums of your travel insurance. Your age will also influence the cost of your package. Generally, younger and healthier persons pay lower premiums than older people with health issues.
5. Consider Family Travel Insurance
Family travel insurance is an excellent option for someone traveling with his or her spouse and children. If you go in this direction, find out if it covers your partner or children if they travel alone. Family travel coverage is more affordable than buying insurance for each family member.
6. Compare Single-Trip Insurance To Annual Coverage
Your travel insurance provider may offer single-trip insurance to cover you for one get-away. Frequent travelers may find the annual travel insurance to be a better fit, however. Annual travel insurance coverage can save time and money for the busy traveler.
7. Confirm The Covered Countries
Most travel insurance covers cover specific countries. It’s imperative to confirm which ones are under your policy. You don’t want surprises like missing a payout for being in the wrong country. Be prepared to pay substantial premiums if you choose the worldwide cover multi-trip policy.
8. Get Car Insurance
Some car insurance policies cover you when driving abroad, while others demand an extra amount. Check the extent of coverage with your insurance company and make plans for car insurance if necessary.
9. Assess The Maximum Trip Duration
Maximum trip duration is an important consideration, especially with multi-trip travel insurance. Most policies will provide coverage for up to 31 days per trip. If you will be staying away for longer, inform your insurer for advice.
10. Baggage Coverage May Not Be A Must
You may not have to cover your baggage with travel insurance if you have a personal property policy. It may be part of your homeowners’ coverage. However, consult your travel insurance provider for clarification before leaving out your bags.
When Travel Insurance Saves the Day…
You Have To Cancel Your Trip
You are preparing to travel, but hail wrecks your house, or a family member falls sick or passes away. Would you still proceed with the trip? If you have to cancel your journey for a weighty reason, travel insurance reimburses your prepaid expenses like air ticket.
Let’s say you reach the airport and realize that flights to your destination aren’t operating due to bad weather. A trip cancellation coverage can refund the cost of a new ticket or accommodation as you await normalcy.
A delayed flight can make you late for the departure of a planned connecting flight. You would need to make arrangements for another flight to get you to your destination. A missed connection coverage compensates for the expenses that come with such travel changes.
Lost Or Delayed Luggage
Your airline erroneously leaves your baggage behind, or you lose everything during the journey. You reach the destination without extra clothes and personal items. If you have coverage for delayed bags, the insurance company can reimburse for the essentials you buy to stay comfortable.
You Get Injured Or Sick While Away
Medical coverage comes in handy when you need healthcare services while on a trip. It offers assistance services to locate a hospital and arranges for your transport. You won’t face large medical bills when your travel insurance policy has medical coverage.
Acts of terrorism just when you are about to visit a country can force you to reschedule your trip. However, you could lose money in non-refundable expenses. Your terrorism coverage in travel insurance can recover some of the costs.
Extreme Weather Ruins Your Destination
You are going for a vacation, but a tsunami destroys the hotel you have booked a few days to your holiday. Protection for weather damage can reimburse your prepaid costs. A travel assistance service provider can also organize an alternative vacation destination.
As you move around with your stuff during your trip, there is a chance of losing some things, like the travel papers. If you lose your passport, your travel insurance can help replace and pay for a new one.
The Bottom Line On Travel Insurance
Travel insurance is a crucial consideration for travelers. Things can go haywire while you are away or even before your trip and cause considerable financial losses. Insurance can help to offset your medical bills and other expenses related to the inconveniences of being away from home.
The cost of the travel insurance policy, the benefits provided, as well as coverage exclusions will very greatly among competing insurance companies. An independent travel insurance agency will be able to provide the best comparative analysis to find the best travel coverage at the lowest cost.
Contact us today for free travel insurance quote comparison.
March 7, 2019
April 23, 2018