There many reasons for buying travel insurance. Unfortunately too many people buy insurance without really understanding what it is and how best to find the kind of insurance that will meet their specific travel needs. This coverage guide will give you an over view of what the various travel insurance components are and what they cover.
Everyone’s travel needs are different. That’s why there are different coverages to fit specific travel circumstances. A family traveling with small children has different needs than business travelers or seniors taking a cruise. Take the time to understand these coverage options before you buy. It just might save you a lot of money and headaches if you ever need the benefits.
Major Components of Travel Insurance
Trip cancellation insurance provides coverage in case you have to cancel your trip before you leave. It is one of the basic coverages of most travel insurance plans. Most policies cover a wide range of reasons for cancellation but you need to check the coverage details of the policy you are considering for specific covered cancellation reasons.
This benefit will reimburse you for pre-paid nonrefundable costs if you have to cancel your trip for a covered reason. There are situations that arise that may not be always covered. If your situation holds a lot of unknowns and you want to make sure you are covered no matter what, you need to make sure you have “cancel for any reason” coverage. Some plans include it and others allow you to add it at a small extra cost.
Sometimes it happens that you have to cancel a portion of your trip after you have left. This can be the result of many reasons such illness of someone at home, business emergencies, problems at your destination and many others.
This coverage will reimburse you for the unused nonrefundable costs and in many cases give you money to return home or to rejoin your trip later if you can. Benefits vary from policy to policy so you need to understand what is covered and what is not before you leave.
Trip Delay and Baggage/Personal Effects Loss
These benefits are another major reason most people buy travel insurance. This covers such problems as lost or stolen luggage or other personal belongings, missed connections due to weather, overbooked flights and a variety of other causes. Travel delays come in a variety forms.
This coverage can reimburse you a certain amount for each day of delay and amounts for alternative transportation to get you back on schedule or to a place to catch your cruise if you missed a sailing. Different policies have different coverage limits so make sure the coverage amounts are reasonable for your situation.
Medical coverages can be one of the most important coverages you can have especially if you are traveling out of your home country. There are several benefits often included under medical travel insurance. The most common coverages include medial transportation, doctor charges, medications, x-rays and more. Emergency dental work is usually also included. Policies will vary in the maximum amount of coverages.
Medical evacuation and repatriation coverage can be a real benefit if unfortunately the circumstances arise where it is needed. If you become ill and need to be evacuated to another location or back home for proper treatment the cost can be very expensive without insurance.
Life and Accident Protection
The accidental death and dismemberment (AD&D) pays benefits for travel accidents that may cause permanent disability or a traveler’s death. Policies have various amounts that will be paid for the loss of limbs or death. Flight accident insurance is usually included under the AD&D portion of the policy but sometimes it is separate.
Policies can also cover situations where a traveler needs to be evacuated from dangerous local situations such as political unrest, civil protests or impending natural disasters. This benefit provides the necessary means and funds to evacuate a traveler to a place of safety and then back home or the point of origin.
Other Specialized Coverages
There are many different specialty coverages and services that you will find included in most policies such as 24-hour telephone assistance or roadside assistance in the case of car rentals. There are also other coverages that can be purchased for specific travel needs. The most common of these coverages is sports or adventure activity coverage.
Most travel insurance policies will not provide coverage for accidents sustained while participating in activities such as hang gliding, scuba diving and more. Likewise most policies do not provide coverage for accidents that occur while participating in sports events and there is usually no coverage for damage to sports equipment such as golf equipment, skis or other equipment.
Compare Quotes for the Best Value in Travel Insurance
The easiest and best way to make sure you get the most value for your travel insurance dollar is to compare quotes from the leading travel insurance carriers. It’s easy, quick and can save you money. Try it here.