Plan your trip carefully and are ready to book your next vacation ticket, but have you considered purchasing a complete package travel insurance? Make sure you do it! A travel insurance policy protects you from financial losses you may incur due to unforeseen circumstances before and during your trip.
Often, travelers overlook investing in travel insurance until the unexpected hits them. Simply put, a travel insurance policy is created to provide travelers with peace of mind and financial protection in the event of travel risk. Some travelers prefer not to buy it because they feel that it is expensive and also a waste of money.
However, this is not the case because a travel insurance policy does not have to be expensive. Buying it gives you an extra form of protection and security. Travel insurance is not only useful for expensive trips like luxury cruises, safarisor international vacations to multiple cities, but it’s also useful when you’re staying closer to home.
We recommend asking yourself what you might lose if you have to cancel at the last minute or your luggage goes missing. Your answers will help you decide whether travel insurance is right for you or not! However, if you are looking to purchase travel insurance for the first time, it can be a bit confusing.
In this article, we’ll explain what a travel insurance policy entails, why you should get one, and how much it costs. So let’s dive in!
What is travel insurance?
Travel insurance is a form of insurance that you purchase to protect you from certain risks and losses that you may incur while traveling. This could range from a canceled flight and baggage delay to a medical emergency in a remote area.
If any of these covered losses occur during your trip, you can submit a claim to your travel insurance company and you will be reimbursed in monetary value. However, in some cases, such as during an authorized emergency medical evacuation for illness/injury, your travel insurance may pay your expenses in advance.
Why should I buy travel insurance?
- Travel expenses are high and most people cannot afford to lose the money they spent if they are forced to cancel a trip at the last minute. Therefore, purchasing travel insurance will help you get reimbursed.
- Another reason to purchase travel insurance is that when an unforeseen situation arises, your travel insurance can help you resolve it. Additionally, situations like lost luggage, delayed trains, and canceled flights usually happen all the time. Travel insurance can reimburse you for any losses covered by its policy and ensure that you arrive at your destination.
- There is no doubt that emergencies abroad are quite expensive and you may not be covered by other countries’ national health insurance policies. As an international traveler, if you suffer a serious injury/illness, you may end up with exorbitant bills if you pay out of pocket.
The cost of travel insurance
The total cost of the different travel insurance policies available is based on two main factors. These factors include your prepaid travel expenses And your age. That’s it! Are you wondering if your medical history, your destination or your claims history will be taken into account? No! The total cost of your travel insurance will not be affected by any of these items.
What does travel insurance cover?
Travel insurance may differ depending on various factors. However, the policy generally covers three essential things. Below are the three essential travel insurance coverages. Scroll down!
- Protection for your financial expenses.
- Protection for your well-being.
- Protection of your personal belongings.
When you’re ready to purchase a travel insurance policy, we advise you to research these benefits.
1. Trip cancellation cover
Generally, you will be compensated by your travel insurance for prepaid, non-refundable travel deposits if the trip was canceled for a covered reason. These expenses can include your plane tickets, hotel rooms, rental cars, tours and cruises. For example, you may cancel a trip for the following acceptable reasons: illness, injury or death of the traveler.
Also for a close family member or traveling companion, civil unrest, serious family emergency or unexpected jury duty. You can also cancel a trip if your travel provider stops offering services for more than 20 hours due to a natural disaster or strike. If you cannot access your home or travel destination or if you/your travel partner have been made redundant after purchasing your policy.
Meanwhile, you can’t just cancel a trip for no particular reason and expect compensation because you have travel insurance. Let’s look at this example if you had an argument with your friend and decided not to travel with her. Additionally, if you decide not to fly to Hawaii because it’s too far, those reasons are not covered.
2. Travel delay coverage
Suppose your travel plans are disrupted, your travel insurance policy is able to provide you with some financial relief. Additionally, travel delay coverage typically provides compensation if you are delayed due to any of the reasons covered by the policy.
Your policy may compensate you for expenses such as food, lodging and local transportation incurred during your delay. Additionally, these covered reasons include inclement weather, airline maintenance, or civil unrest.
3. Travel interruption coverage
In the event that you have to cut short your trip due to an illness/injury you sustained during your trip. Or, if you have a family emergency that you need to attend to at home, your travel insurance can offset your lost non-refundable expenses.
Additionally, your policy may also cover the cost of a one-way economy class plane ticket home. Although not all reasons are covered. For example, if your beach vacation is a disaster or you miss your new puppy, you won’t receive any compensation for the trip interruption.
4. Medical expenses and emergency evacuation benefits
If your trip is to the United States, your health insurance will cover any illness/injury you may suffer while traveling. However, if your trip takes place outside the United States, your U.S.-based health insurance may not cover you. Health insurance is not acceptable abroad, so you must purchase additional coverage.
It is very important to obtain travel insurance that provides excellent medical coverage and emergency transportation when traveling abroad. Perhaps if you get sick or injured while traveling, these benefits can cover your medical expenses.
5. Lost baggage
In case your luggage is nowhere to be found, your travel insurance policy could save your life. In the meantime, if your travel insurance includes baggage benefits, your insurance company will compensate you. This may be up to the maximum stated in the confirmation of cover, for loss, theft or covered damage to your baggage and personal items.
For each plan, there are specific coverage limits for each benefit, which are described in the plan documents. Additionally, your travel insurance policy does not cover everything. For example, most insurance policies do not cover very expensive jewelry, art, and antiques. Additionally, the money will never be refunded.
If you don’t want to lose irreplaceable items, make sure to leave them at home and not take them on vacation. Additionally, be sure to read your policy carefully to see what is covered.
Conclusion
Travel insurance policy is not just an optional expense, you should consider it a very important investment. Which helps protect your travel and finances, and gives you peace of mind. Get out, travel and explore, but don’t forget your travel insurance!