Traveler's insurance is an optional type of insurance created to cover incidents or losses that happen during a trip. Most people who buy travelers insurance are traveling either overseas or embarking on an expensive independent trip. On the other hand, domestic travel and package trips are either not worth the extra expense or have protection already included as part of the package.
Traveler's insurance protects travelers in several categories. Although offerings vary from one company to the next, most offer coverage in at least three categories: trip cancellation, delays or interruption, medical expenses (including emergency transportation) and lost or stolen baggage. Most organizations usually offer 24/7 travel assistance services as well, where travelers that run into trouble can get information and request assistance.
Certain types of travelers insurance extend over the basics to cover other areas as well. This can include everything from replacement of stolen travel documents to overseas funeral expenses to legal assistance. Others offer rental car damage protection and injury (either to yourself or to a third party). The most comprehensive a travelers insurance is, the more expensive but also the more complicated the criteria for acceptance is. Most insurances do not cover pre-existing medical conditions such as asthma or heart disease, although additional coverage can be obtained in most cases for an extra fee.
Most travelers insurance will not offer coverage in certain situations, such as injury or loss when traveling to countries in war. Expenses related to pregnancy, drug use or alcohol abuse are also excluded in most policies. While some companies will allow for treatment related to pre-existing conditions, most have severe limitations in those cases as well.
Travel insurance cost is usually calculated based on the cost of the trip. Most companies charge between 5 and 7 percent of the total cost (or the estimated total cost) of the trip. Because most people buy travel insurance through travel agencies, this is easy to calculate. If you buy insurance on your own, you will probably be charged a flat fee based on your destination (whether it's considered high risk or not), length of the trip and your age and current medical condition.
Comprehensive insurance packages are an option for frequent travelers. They are offered on a time, rather than a single trip, basis. This means you can buy comprehensive travelers insurance for 3, 6 or 12 months and it will cover any and all trips you take within that time period.
