What Is Travel Insurance?
Insurance is likely the last thing on your mind when planning a major trip or vacation, but it’s important not to overlook it. If something goes wrong during your trip, expenses can add up quickly. In such cases, travel insurance provides financial protection and peace of mind.
What Is Travel Insurance?
Travel insurance provides coverage for potential losses encountered during a trip or vacation. This can include medical expenses incurred abroad, lost or stolen luggage, flight and hotel cancellations, and damage to rentals, such as a rental car.
While travel insurance is not mandatory, it offers additional peace of mind, and individuals should weigh whether it is worth the investment. Before purchasing, it is advisable to review existing policies or programs for overlapping coverage. For instance, health insurance plans may cover international medical expenses, and some credit card companies may replace lost luggage. Avoiding redundant coverage can make travel insurance more cost-effective.
What Do You Need To Know About Travel Insurance
Since travel insurance is less common than auto or homeowner’s insurance, you might not be familiar with its policies. To help you decide if it’s right for you, start by learning these six key things about travel insurance.
1. Travel Insurance Can Mean a Few Different Things
Travel insurance is an umbrella term that encompasses various types of coverage. It may refer to health insurance that covers medical expenses incurred abroad or to coverage for your belongings in case they are lost or stolen during your trip.
Other types of travel insurance include trip cancellation or interruption policies, which help cover costs if you need to cancel or interrupt your trip due to illness or an airline going out of business.
A travel insurance policy may cover just one of these areas or several. Be sure to understand exactly what you’re purchasing to ensure you have the coverage you need.
2. The Longer the Trip, the More You Need Coverage
While travel insurance provides peace of mind regardless of how far or long you travel, it’s not necessary for every trip. In general, the longer your trip, the more important it becomes to consider insurance. Longer trips often involve more flight and hotel bookings, more luggage, and a greater chance for something to go wrong.
For a six-month tour of Europe, travel insurance is worth considering. However, for a short one-week trip to Miami, it may not justify the expense.
3. You May Already Have Travel Coverage
Before purchasing travel insurance, check if you already have coverage in place. For example, your health insurance may cover medical expenses abroad, including the cost of returning home for care. Your homeowners’ policy might also protect your belongings while you’re traveling.
Some credit cards offer coverage for lost luggage if you booked the flight using the card (see 9 Insurance Perks Your Credit Card Provider Might Offer to learn about other benefits).
Contact your insurance agent and credit card company to confirm what coverage you already have before buying additional policies.
4. Use Aggregator Sites to Easily Compare Options
The internet has made purchasing travel insurance easier than ever. You can now find websites that gather quotes from multiple insurance companies, allowing you to quickly compare your options and find the best deal.
InsureMyTrip and Squaremouth are two popular travel insurance aggregators that can help you start your search.
5. Don’t Let a Cheap Price Draw You In
While getting a fair price for your coverage is important, cost shouldn’t be the only factor in your decision. Some “low-cost” policies may offer less coverage than you need. The low price could reflect limited coverage that wouldn’t fully protect your trip or belongings.
A cheap policy might also have a high deductible, meaning, that when you file a claim, you’d need to pay a significant portion of the costs yourself before the insurer covers anything.
If a policy seems unusually affordable, it’s worth taking a closer look—there’s likely a reason for the low price.
6. Beware of Exclusions
An exclusion is a risk, peril, or event that a policy does not cover. For example, some trip cancellation policies may exclude losses due to hurricanes or cancellations because you started a new job, while certain health insurance policies may not cover pre-existing medical conditions.
Before signing an insurance contract, make sure to inquire about any exclusions so you don’t miss out on coverage for something you might really need.
Conclusion
While travel insurance might not be the most exciting aspect of planning a trip or holiday, it could be the most important if something goes wrong. Keep these six pieces of advice in mind as you review your options, and then relax, knowing you’re protected.
