Types of Travel Insurance
Peace of Mind
The right kind of travel insurance can be an essential part of any trip or vacation, especially for those who travel often. Travel insurance can help protect your health, luggage, possessions, and your wallet should you decide to cancel your trip for any reason.
Although only about 30% of Americans purchase travel insurance, this number is up from 10% which was the estimated number of people insured before the tragedy of 9/11. Those with this particular type of insurance are helping to protect those they love, and give themselves a little peace of mind.
Frequent travelers are usually familiar with flight and trip cancellation insurance, yet most people are not aware of travel health insurance, baggage coverage and medical evacuation insurance. More than half of travelers are not aware of the need for medical evacuation insurance, especially when travelling outside the country. Read one man's nightmare and discover why you may need to purchase travel insurance before your next adventure.
What Does it Cover?
- Flight cancellation.
- Lost luggage containing prescription medication causing the need for an emergency prescription refill.
- Stolen or lost passport and wallet and the need for a replacement passport and some emergency cash.
- A medical emergency or accident and the need for medical evacuation, or you have a medical emergency in a foreign country.
- Cancellation of your trip due to illness.
- Coverage for non-refundable expenses should your airline, cruise line, or travel agency go bankrupt.
- You want to cancel your trip due to a terrorist incident where you are planning to go on business or for vacation.
- A hurricane causes evacuation from your resort, hotel or cruise.
Types of Coverage
Flight Insurance
This type of insurance coverage offers huge payouts if you are on a plane when it crashes. It is the most expensive, yet probably the least necessary.
Trip Cancellation and Interruption Insurance
This insurance coverage should be chosen when you spend a small fortune for a trip or vacation, yet it is not a good investment when the insurance costs as much or more than the money spent for the trip. Do not purchase this from the company the cruise or airline with whom you are going to travel. If a company files for bankruptcy chances are that their insurance coverage also becomes null and void, meaning you lose your entire investment.
Health Care Insurance
Many people make the mistake of assuming that their existing health care coverage will cover medical emergencies no matter where they travel. This is not true. Most health care coverage will not cover medical expenses outside of the United States, or while travelling on foreign flagged vessels. Most cruise lines that are based in the U.S. are not flagged as a United States vessel, even when cruising in waters of the U.S. Many foreign countries will not treat you or admit you to a hospital until you have paid for services. Health insurance for travelers is something that you need to look into and be aware of before you travel outside of the country.
Additional Types of Insurance to Consider
Non-refundable Insurance
Most airlines charge a minimum fee of $100 for flight changes or cancellations, yet non-refundable insurance can be purchased for a small fraction of this fee. This can come in handy and save you money if you are anticipating a possible change in travel plans.
Baggage Insurance
Due to the Warsaw Convention, the coverage offered by many airlines and cruise lines does not offer as much as you might expect.
The need for coverage depends on your travel destination. Although you may think that luggage is covered with your airline, there are many exclusions and non-covered items, some of these items may include: financial documents, furs, and jewelry.
When you book a flight be sure to ask about excess valuation, this is a type of additional insurance that most airlines do not want you to know about. Most airlines will not offer information on this type of coverage and your best bet is to inquire about this at the airport check in counter prior to your trip. This is a good idea for those who travel out of the country.
Golf Travel Insurance
Golfers may find this type of coverage useful, especially those who must travel out of town on business. Most insurance of this type includes coverage for lost golf equipment, golf equipment delay, and golf fee refund.
Adventure/Extreme Sports Travel Insurance
Most basic travel insurance policies have strict exclusions when it comes to adventure travel, including specific such as how high a mountain an extreme adventurer wishes to attempt, or how far down in the ocean a scuba diver may dive. Although additional adventure sports insurance can be costly, it pays to check it out if you are into extreme sports.
