From a dream trip to a cross-country wedding, the issue of whether travel insurance is worth it has been the topic of many conversations. Essentially, it is an assessment of what one can afford to lose. This factor will help you with your decision on whether coverage is necessary.
What is travel insurance?
Covers all possible risks, which cause hassles or even a financial loss while traveling. Coverage can include missing connecting flights, delayed luggage, and serious issues such as injury or illness.
What travel insurance will cover?
Depending on what coverage you selected, travel insurance can cover a wide variety of possible damages and losses, including:
Medical Cases
Travel insurance tries to provide backup for medical expenses incurred abroad, some of which normal health insurance does not cover. Some health insurance companies do offer limited coverage abroad, and some offer nothing at all including Medicare. Travel insurance complements your regular health insurance and will cover certain costs in case you fall sick or suffer from an injury before or during your travels.
Baggage
Travel insurance covers lost or stolen luggage. It can be difficult to obtain compensation for lost luggage. Some policies cover up to $3,300; international limits may be $1,750. Proof is needed for value, and claims often need to be made within 21 days. Only essentials such as clothing and toiletries are reimbursed in case of delays.
Cancellations at the Last Minute.
Another extensive advantage of travel insurance is in covering cancellations. Most resorts and cruise companies will not refund deposits for cancellations. If canceled more than 14 days in advance, sometimes a cancellation fee applies, and certain cruise lines only allow the traveler to get either 25% refund or credit for a future trip. All companies deny refunds two weeks or less before departure. One must protect himself, given that events may sometimes arise unexpectedly.
Coverage above or beyond your credit card
Several credit cards do have limited insurance, with coverage limitations for cancellations and interruptions up to a maximum on an annual basis, if they offer cancellation/interruption insurance at all. Most expensive travel risks can be covered by credit cards, but only a few do. In fact, most credit card plans do not constitute emergency medical care and evacuation, which makes travel insurance the best way to fill that need.
What travel insurance might not cover
Understand that there are so many reasons to purchase travel insurance that some things may not be covered under travel insurance. If you have any preexisting condition, find out what kind of a plan provides a preexisting condition waiver. If you’re visiting an area that has political instability, look into the coverage a policy has should you want to cancel because of problems in the area. Travel insurance covers certain occurrences of tour operator defaults as a result of financial woes. Research how that works before booking your trip.
What is the travel insurance premium?
According to travel business owner Jonathan Harty in Massachusetts, travel insurance prices depend upon the trip amount and age of a traveler. A typical 35-year-old will pay 3 percent to 5 percent of trip costs for insurance while a 60-year-old pays as high as 10 percent. It may be a small price to pay to protect your investment in a honeymoon or a trip of a lifetime.
What should be insured when taking out travel insurance?
Consider possible cancellation reasons. Will a weather delay severely affect your trip? Could you end up having to go on a work trip instead, or even have your school year extended? Are there acts of war in the territory you are planning to visit? Is there a possibility of the CDC marking your travel destination with a travel warning?
These are all legitimate reasons for canceling a trip or wanting insurance coverage. But not all travel insurance will cover them.
Whatever the cause cancellation insurance
You’re free to cancel whenever you feel like it, even for reasons as trivial as a hangnail company usually doesn’t require justification. You’ll still need to cancel within a certain window specified by the company, which is usually between 48 and 72 hours ahead of your departure.
You’re working far more comfortably for less in reimbursements. The cancellation for any reason program provides the traveler with reimbursement for about 70 percent of costs paid in advance for nonrefundable trip expenses, again without stating a reason for cancellation. Sometimes it is offered in a separate policy but noted as more often included in a comprehensive policy.
Comprehensive travel insurance
This is the kind of standard policy that people think of when they think about trip insurance. Usually, the long policy covers delays, cancellations because of sickness or death, lost property, medical emergencies, and other things. Just make sure to read the fine print to know exactly what each policy covers.
Travel Insurance coverage alterations
You can request a refund (for a small fee) within 10-15 days if the policy does not meet your needs. This time allows for thorough review of coverage and understanding of the claims process.
Buy the travel insurance as you plan your trip. Some insurance policies must be purchased within 10 to 30 days of your first deposit; however, Travel Insurance from GoodHope Insure can actually be purchased any time up to the day before departure. Early purchase is good planning. Travel should be fun, and insurance is there to ease any financial worries that may come with cancellations and unforeseen events.
