The whys and what fors of Travel Insurance
Even the most seasoned travelers sometimes feel confused about travel insurance — what’s out there, what it covers, and whether they need it.
While coverage and policies vary from state to state, of course, here are some basics of travel insurance to get you started:
There are five main types of travel insurance. What you might need depends mainly on what kind of trip you’re taking, what kind of traveler you are, and how frequently you travel. The five main types are: trip cancellation and interruption (full or partial reimbursement for a trip you need to cancel before departure, a trip that gets canceled because a tour company or resort goes out of business, or a trip that gets cut short for a wide variety of reasons) medical (for health issues that occur outside of your normal coverage area) evacuation (due to disaster, dangerous weather, political emergency, or medical emergency) baggage (reimbursement for lost, stolen, or damaged baggage) flight insurance (also called “crash coverage,” this is a life insurance policy that covers you while you’re on the plane, in the event of a statistically-rare crash)
Travel expert Rick Steves explains the way they generally work like this:
“The various types are generally sold in some combination — rather than buying only baggage, medical, or cancellation insurance, you’ll usually purchase a package that includes most or all of them. If you want just one type of coverage, such as medical, ask for that (though it might come with a little cancellation or baggage insurance, too). ‘Comprehensive insurance’ covers all of the above, plus expenses incurred if your trip is delayed, you miss your flight, or your tour company changes your itinerary.”
Just because you have health insurance at home does not mean that it will cover you on your trip. You need to check the ins and outs of your particular health insurance policy. It may cover you while you travel, but many do not. Some insurance policies don’t even cover health emergencies experienced on foreign-flagged vessels — which is what most cruise ships are. Check with your provider, ask us for suggestions, and direct any insurance-related questions to the provider (we give you contact numbers). Steves said, “Before purchasing a policy, ask your insurer to explain exactly what’s covered before and after you get to the hospital.”
Avoid purchasing travel insurance from the company that’s also hosting your trip. The reason for this? If that company goes out of business, so does their insurance.
Some companies offer comprehensive coverage that can be your primary coverage while traveling. What does this mean, and how can it benefit you? It means that the insurance company will pay first, regardless of your other insurance. They don’t even inquire about additional insurance, saving you tons of paperwork and out-of-pocket expenses. Travel Insured, Allianz and Travelex are three companies that provide these policies as an option.
Weigh the cost of the trip with the cost of insurance. Is it worth it if you just bought a $79 ticket for a quick weekend in Chicago? Maybe, maybe not. If you’re headed out on a once-in-a-lifetime trip that you’ve been saving for months, travel insurance is likely a great idea.
If you want to maximize your fun and minimize your risk, travel insurance might be just the right option. Take your time, ask many questions, and find what works best for you and your family. You can even check out the video we did about travel insurance HERE.
Do you have questions about insurance or any other travel-related topic? We’d love to chat and get to know you and your travel plans better. To get in touch, click HERE to schedule a chat.
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