Travel insurance is insurance that covers some aspect of your travel plans. This could be the cost of your trip if it needs to be canceled, your health while you are traveling, your luggage, or some other aspect of your trip. The cost for travel insurance varies depending on the expense of the item being insured and the type of travel insurance purchased. Travel insurance policies can be purchased in conjunction with travel tickets or as completely separate policies.
Some travelers mistakenly assume that purchasing travel insurance will protect them from all scenarios. For instance, they may purchase trip cancellation insurance and assume that they can cancel their trip at the last minute for any reason and be reimbursed for the money they have spent. This is not likely, however, because these plans have stipulations concerning when they will cover cancellations. Other travelers assume that travel insurance is simply an additional expense that is not needed. There are many situations where travel insurance is a very good idea, especially when traveling overseas.
Travel insurance carries many benefits, particularly when traveling out of the country. Your personal medical insurance may not cover you when out of the country, so a travel insurance policy will ensure that you have medical care if you need it. You also put your personal belongings at higher risk of loss or theft when traveling overseas, but travel insurance can cover this. Cruises and overseas flights can be unexpectedly canceled, and if you do not have an insurance policy you will end up losing the money you have invested in your trip.
There are a variety of coverage options to consider when purchasing a travel insurance plan. Trip cancellation and interruption is one of the most common types of coverage. This will cover the cost of your trip if it is unexpectedly canceled before you leave or interrupted once it begins. The types of cancellations or interruptions covered vary greatly from policy to policy. Another type of coverage is medical expense and transportation. This will cover the cost of medical care or a necessary evacuation when you are traveling out of the country. Lost or stolen baggage is another common coverage option. You can also purchase a special life insurance policy when you are traveling that will pay if you are killed while on your trip.
Before purchasing a travel insurance policy, make sure you understand what is actually covered. One risk of purchasing a policy is the false sense of security that comes when you think you have coverage for a particular circumstance, but you in fact do not. For instance, if you have a medical travel insurance policy, it may not cover the cost of injuries you receive while participating in a sport, such as skiing or scuba diving. Read all exclusions and exemptions carefully before purchasing a policy. Make sure the policy is worth the cost before you buy it.
You may be wondering whether you should purchase travel insurance. This decision is difficult because there is always the likelihood that you will not need the policy, and this could make it feel like wasted money. While you are the only one who can make this decision, if you are traveling overseas, cancellation or interruption insurance makes sense. Also, any time you travel somewhere that your medical insurance will not apply, you should consider a medical travel insurance policy. If you are purchasing travel insurance, you should probably add the baggage coverage if it is not included, because this is fairly affordable and provides a nice layer of protection.
