Even the most seasoned travelers sometimes feel confused about travel insurance. What’s out there, what it covers, whether or not they need it. While coverage and policies vary from state to state, here are some basics of travel insurance to get you started:
- There are four main types of travel insurance. What you may need depends largely on what kind of trip you’re taking, what kind of traveler you are, and how frequently you travel.
- trip cancellation and interruption – full or partial reimbursement for a trip you need to cancel prior to 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 variety of reasons. Some policies come with a ‘Cancel for Any Reason’ waiver allowing you to cancel your trip, no questions asked. Other policies will allow you to cancel for covered reasons only.
- medical – for health issues that occur while traveling (more on this below).
- evacuation – due to disaster, dangerous weather, political emergency, or medical emergency.
- baggage – reimbursement for lost, stolen, or damaged baggage.
Travel expert Rick Steves explains it like this:
“The various types of insurance 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 in particular, 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, if you miss your flight, or if your tour company changes your itinerary.”
- Just because you have health insurance at home does not mean 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. In fact, some insurance policies don’t cover health emergencies aboard foreign-flagged vessels, which is what most cruise ships are. Check with your provider, ask your travel agent for suggestions, and direct any insurance-related questions to the insurance provider. As Steves puts it, “Before purchasing a policy, ask your insurer to explain exactly what’s covered before and after you get to the hospital.”
- Some companies offer comprehensive coverage that can serve as your primary coverage while you’re traveling. What does this mean, and how can it benefit you? It means that the insurance company will pay first, regardless of what other insurance you have. They don’t even inquire about additional insurance, saving you tons of paperwork and out-of-pocket expenses. TravelGuard and Travelex are two such companies that provide these policies as an option.
- Weigh the cost of the trip with the cost of insurance. If you just bought a $79 ticket for a quick weekend in Chicago — is it worth it? Maybe, maybe not. If, however, you’re headed out on a once-in-a-lifetime trip that you’ve been saving for, travel insurance is likely a great idea.
While travel insurance is optional, I always recommend it to my clients. It protects your vacation investment and YOU in case the unexpected happens. Take your time, ask tons of questions, and find what works best for you and your family.
Have questions about insurance – or any other travel-related topic? I’d love to chat with you and get to know you and your travel plans better. To get in touch, just click here.
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