5 Important Things To Know About Travel Insurance

Almost everyone young or old is a traveller with a burning wanderlust at heart. Travelling is a great way to relieve stress and to learn more about new cultures. The joy is doubled when you travel with the people you love, or to a wholly unknown land.

However, the fact of the matter is that not all trips go exactly according to your plan. Sometimes, mishaps or unexpected challenges happen. Worse, some travel accidents can actually land you in hospital, and you will have to pay immediately for the treatments. For this reason, it is recommended that you should get travel insurance when you go on a trip far from your home. Travel insurance will provide a payout in case of unforeseen losses, whether you are traveling domestically or internationally. Every traveler should know the facts about travel insurance in advance and with that in mind, here are 5 things you should know about travel insurance.

Your home is most likely covered by other policies you already have

The risk of getting burgled while you away still exist, but it is likely that your property has already been insured. Thus, even when you are traveling, if your home is robbed, you will still be eligible for a payout on your homeowner’s insurance. Travel insurance is not necessarily needed in this situation.

It is also interesting to note that some medical insurance policies do provide coverage for injuries or illnesses sustained abroad. However, you should contact your insurance provider beforehand to make sure that they do provide this coverage.  Medicare, for instance, only covers medical treatment within the United States.

Travel Insurance covers trip cancellations

There is always a risk that your trip could be canceled because of a variety of reasons. When this unfortunate event happens, if you are covered by travel insurance, you might cancel the trip and receive a payout as compensation. The reason for cancellation would have to be within the term and conditions of the company itself, else you will not be eligible for the payout.

The most common reasons for cancellation include sickness, loss of job, natural disasters, the bankruptcy of the tour company, etc. Do note that trip cancellations mean that you do not go on the tour at all. If the trip does happen but is interrupted for whatever reason, it does not count as a cancellation.  That situation would need to be covered under travel interruption or delay coverage.

Don’t neglect evacuation coverage

Some travel insurance policies allow options for an evacuation policy. With this coverage, the insurance company will pay for any transportation fee stemming from your treatment process. For example, if you are injured in a remote location and are in need of an immediate airlift, the company will pay for the transportation fees.  Some policies will even fly you back home to receive treatment.

These evacuation plans are very helpful for extreme travellers, or those who enjoy trekking to lesser-known areas. It might also be of great use to patients who need specialized care that a small hospital cannot afford. Do note that an evacuation policy only pays for the transportation fees, not the medical expenses.  If you are traveling as a couple, you might be interested in policies that would cover the transportation of both parties if one is injured.

There are three types of travel insurance

Travel insurance is an umbrella term that includes a set of policies relating to travel. Within this category, there are three main types of policies that you should take notice of. The first one is the trip investment category. This is the type of policy that covers trip cancellations, delays or interruptions that are described above. The second is the personal health category, which deals with injuries or sickness.

The third one is a less important category called personal belongings insurance. This type of insurance provides coverage for your baggage, and you will receive a payout if it is lost during your trip. It also covers rental car damage, though occasionally only. It is great to have all three policy types, along with an evacuation plan, if needed, but the former two are the most important ones.

Travel insurance is not expensive

Many tourists skip travel insurance because they believe it is an expensive luxury. However, the truth is much more complicated. Travel insurance usually takes up 5-8 percent of your total trip expenses, making it an affordable extra most of the time. Furthermore, if you are the kind that would travel a lot, there are plenty of yearly plans which are available at affordable price points.

Head over to Best Insurance Online for more news on insurance and how to save on insurance.

With travel insurance, you will be able to go on a trip without having to worry about any mishap. This is certainly an investment that is worth considering, especially if you tend to travel a lot, or if you enjoy adventurous trips. For more information about travel insurance, don’t hesitate to reach out to us with your questions. We will be happy to answer them!