Travel insurance is probably one of the most overlooked aspects of planning a vacation, and it’s not funny how heavily some people end up paying for ignoring this basic component of travel budgeting. Unfortunately, healthcare funding may not apply wheretraveling to other destination around the world is concerned, and healthcare costs in other countries can be staggeringly high.
If it’s a grave healthcare issue, you may be looking at running a bill amounting to several thousand dollars. A comprehensive travel insurance plan helps you avoid these inconveniences, and enjoy a peaceful, hassle-free vacation. Though an experienced travel company or travel insurance advisor may be able to advise you on this, it is always good to have background information about the real relevance of travel insurance and different types of travel insurances.
Let’s get an overview of the different types of travel insurances
Travel medical
Sometimes, owing to unanticipated situations you may have to cancel a trip or modify travel plans. Depending on the circumstances, the insurance provider may reimburse you (up to a specified limit) the travel costs incurred for planning the trip in advance.
Lost or Stolen Luggage
Frequent travelers will know this isn’t a very uncommon or unlikely scenario lose your luggage while travelling. Each policy varies, however, typically if your luggage is lost for a specific time frame, you become entitled to a stipulated amount for buying things. Polices generally also cover your luggage against thefts.
Depending on the policy and circumstances, travelers are typically entitled to around $500/lost bag and about $300/delayed bag. This is a fairly common occurrence so buying travel insurance only for the purpose of getting coverage against stolen and lost baggage may also make sense.
Accidental Death And Disbursement
The traveler or his beneficiary becomes entitled to a given amount if the travel loses his/her limb or passes away in an accident while traveling. Depending on the circumstances of the accident/death, coverage can go up to $500,000.
Emergency Medical Insurance
Would you go without emergency medical insurance in daily life? No right? Then why would you want to go without it in another, unfamiliar land, where you would need it even more. This is one of the primary reasons people opt for travel insurance. Coverage generally ranged from $10,000 to $50,000 for medical emergencies. Before purchasing any medical insurance, check if you are already covered by a local health plan or your employer. There are several exclusions like preauthorization eligibility that you should be aware of.
Car Rental Damage/Loss Waiver
As it implies, this insurance covers damage caused to a rental car by collision. It typically doesn’t cover a third party liability if your damage someone else’s belongings/property.
Supplementary travel insurance covers expenses of helping you reach a destination that can help you get the right medical treatment in cases of emergency. In extreme circumstances, it can also mean hiring a pricey chartered jet. These extra insurances are mostly not covered by regular travel insurance policies.
Free Travel Insurance
Primarily, there are two ways to be eligible for free travel insurance. One is employee benefits and the other, credit cards.
Several companies cover travel medical insurance as part of their employees benefit. These generally don’t cover trip cancellations/delays or lost baggage, but you may still benefit from the medical coverage.
Free travel insurance is also available as travel rewards on select travel credit cards. The eligibility criteria for different types of cards vary, so read everything carefully before applying. This is typically true of the above 65 group where the insurance limit is reduced or unavailable, but additional insurance can be bought for a nominal price. Do a thorough comparison of the price of independent travel medical plans your regular comprehensive insurance plans, which may include reasonable medical and even evacuation coverage.
Only a handful of credit cards cover travel cancellation expenses. Many travelers who happen to have a credit card that does indeed cover trip cancellation or interruption prefer giving travel insurance a miss. Trip interruption or cancellation is probably the single largest reason people purchase travel insurance.
Take for instance; if you accidently break an arm before a planned trip, you and your spouse can cancel the trip (provided both are covered in the travel insurance plan) without facing the prospect of losing the entire amount. Again, if you have an accident on the first or second day of the trip, you may be entitled to a reimbursement for the remaining trip that wasn’t used.
Another important thing to consider is that some insurance firms do not cover specific airlines or travel companies. This is understandable for firms affected by bankruptcy protection but you’ll be astounded to know that the exclusion of some insurance companies also includes top airlines. Ascertain your airline is included in the plan to avoid losses.
