Although more people are now traveling, there is still the Covid-19 pandemic. Breaking news can disrupt travel plans. While you might be eager to book your next vacation you should consider purchasing comprehensive travel insurance that will cover you against financial losses due to unexpected circumstances both before and during your trip.
Beth Godlin, spokesperson for Affinity Travel Practitioner, says that travel insurance is often overlooked until something unexpected happens. It is designed to provide financial protection and peace of mind for travelers who are traveling.
Some travelers are hesitant to purchase travel insurance because it is too expensive. Godlin, however, says that it does not have to be so costly and notes that “purchasing it adds an additional layer of protection and safety.”
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While travel insurance can be valuable for large-ticket trips such as safaris or luxury cruises, it can also prove beneficial for those who are staying close to home. Godlin says, “When you decide if travel insurance will be right for you,”
Choose We spoke with experts in travel insurance to get the best advice about everything you need to know regarding travel insurance.
How to locate an insurance company
It is easy to purchase travel insurance. There are many options available. You can compare the coverage and price of different travel insurance plans on websites like InsureMyTrip.com. Simply fill out a short questionnaire about your trip and the traveler.
A benefit to using aggregator websites is that shoppers can view all travel insurance marketplaces and compare policies in one place. Squaremouth provides verified customer reviews that will help you feel confident about your purchase.
Squaremouth is free to use, since they get commission directly from the provider and don’t charge consumers any fees.
You can visit any travel insurance company’s website to get a quote, or call their toll-free number for more information.
You can usually purchase travel insurance through third-party providers if you use a website like Expedia to book your reservations. Because the policies are designed around trip elements (hotels, flights, rental cars), and can change from time to time, you should carefully read the details.
What are the most common coverages for standard travel insurance policies?
Although travel insurance policies can be varied, they generally cover three things: protection against financial losses, protection for well-being, and protection for personal property.
These benefits are important to consider when shopping for a policy.
Trip cancellation coverage
If a trip is cancelled due to a covered reason, your travel insurance policy may reimburse you for non-refundable, prepaid trip deposits. These expenses can include hotel rooms, car rentals, tour and cruise costs, as well as airline tickets.
You can cancel your trip if you are ill, injured, or die, or a travel companion, or military deployment, civil unrest, or a serious family emergency.
Another reason is that your travel provider stops offering services for 24hrs due to severe weather, strikes, natural disasters, or strikes, or your home or destination becomes unsafe or uninhabitable.
Travel insurance does not allow you to cancel your trip or expect to get reimbursed. These are examples of reasons that you might not be covered for: if you get into a fight with a friend, you can’t cancel your trip, or if you decide to change your mind about flying long-haul to Hawaii.
You can add “cancel for all coverage” to your policy if you need the most flexibility to change your trip. Cancel for any reason (CFAR) plans can increase the cost of travel insurance by around 40%. However, it allows you to cancel your trip if necessary as long as certain conditions are met. For example, you must cancel no later than 48 hours prior to your scheduled departure.
Your trip expenses will not be fully reimbursed. Typically, CFAR coverage will reimburse 50-75% of trip costs.
Trip delay coverage
Your travel insurance policy may provide financial assistance if you have a problem with your itinerary.
Squaremouth spokesperson Megan Moncrief says that travel delay coverage covers reimbursement for travelers who are delayed due to one of the policies’ covered reasons. This benefit typically covers expenses like food, lodging, and local transportation that are incurred due to the delay.
The most common reasons covered are severe weather, airline maintenance and civil unrest.
There is often a wait period before benefits start.
Moncrief states that travelers must delay for the specified amount of time to be eligible for this benefit. Some policies provide benefits for any length delay and others will specify a length requirement. It usually takes between three and twelve hours. Travel delay policies come with a daily limit and a policy limit that can range from a few hundred to a few thousand dollars.
Moncrief states that daily limits range from $150 to $250 for each traveler and $500 to $2,000 for policy limit. Keep all receipts safe as you may need them to support your reimbursement claim.
Trip interruption insurance
If you have to cancel your trip due to illness, injury, or an emergency situation back home, your policy might reimburse you for non-refundable expenses if you return early.
Your policy might also cover the cost for a return economy flight home. However, not all circumstances are covered. Your trip interruption benefits will not apply if you have to cancel your vacation or your pet is sick.
Emergency evacuation and medical expenses
Your personal insurance should cover you for any injury or illness you may sustain while traveling within the United States. If you are traveling to another country, however, your U.S.-based health plan may not provide sufficient coverage. Also, Medicare is not accepted abroad so it is a good idea to get additional coverage.
Durazo says that domestic health-care plans are not usually accepted abroad. This is why it’s important to have International Travel Health Insurance and emergency transport when you travel internationally. These benefits can pay for your medical expenses, including hospital bills, if you become seriously ill or are injured on the road.
Your travel agent’s customer service hotline is also available. He says that Allianz’s 24/7 support team can coordinate your care with doctors in your destination and ensure you are at a medical facility upholding U.S. standards.
An emergency medical evacuation is more costly than medical treatment. This can be covered by the right travel insurance policy. Durazo says that medical evacuation and transport costs can range from $15,000 up to $200,000+ depending on the health of the traveler and where they are located in the world.
He adds that if you are traveling overseas, you will need additional coverage such as emergency medical benefits or emergency medical transport benefits. “Moreover, if you are visiting remote areas, you might need emergency medical transport to get to the appropriate healthcare facility.
Baggage loss
Your travel insurance policy may be of assistance if your baggage is delayed and does not reach your destination.
Durazo says that if your travel insurance policy includes baggage benefits, your insurer will reimburse you up to the maximum amount shown on the Confirmation Of Coverage for any loss, theft, or damage to your baggage and personal belongings. “Every plan has its own coverage limits, which are detailed in the plan documents.”
If your personal belongings are stolen or lost while you’re on vacation, they will be covered. Durazo says that travel insurance can cover you for the actual cash value or repair or replacement, depending on the limits of your insurance policy’s confirmation letter.
Losses must be reported to your airline, airport or police. This documentation will be required to file a claim.
Your travel insurance policy may not cover all items. Cash is not reimbursable and most policies don’t cover expensive jewelry, art, or heirlooms. Avoid bringing these items with you on vacation to reduce the chance of them being lost. Make sure you read your policy to understand what’s covered.
