A vacation travel break can be revitalizing and can open you up to new experiences. It can also be expensive—and just because you're off from work doesn't mean the universe cooperates. A whole variety of unforeseen circumstances can squash travel plans with little notice—which often means leaving you on the hook for financial and other losses. Fortunately, the right insurance can help protect against these losses. Before you book your trip, check if the credit card you plan to use offers any travel insurance or assistance that might be useful to you, then consider the coverages below.
Travel Insurance Basics
Whether you go on a cruise, a tour, or simply hop on a plane for a few days, the cost of air travel or even a single train ride can quickly add up. Yet, many people don't carry travel insurance. Most travel insurance policies can cover an array of unexpected, emergency and acute circumstances. The right insurance can protect against lost luggage, cancellation of a flight, theft of a passport, even a waterborne illness, among others. For coverage to be beneficial, it has to meet the minimum standard. Here are three of the main coverages to look for: Catastrophic: When you are traveling, your plans can change at a moment's notice. A big storm, natural disaster, or even a gunman at the airport are all legitimate disasters that could affect your trip.
Should I Buy Travel Insurance?
Even though travel insurance is offered in a variety of different forms, there are a few reasons why the most common, a "trip interruption" policy, is often the right choice for the modern traveler. Let's break it down. A trip interruption policy is especially helpful if you're on the road and get into a financial crunch or have an unexpected emergency while away. "It's the most popular travel insurance coverage. It's what everyone wants," according to Robert Hobbs, editor in chief of HealthTravelProtocol.com. Also, think about the amount of time you'll be gone—if you're traveling for a week, you probably don't need insurance. But if you're away for a month, or even a week or two, these types of policies can make sense.
When Should I Buy Travel Insurance?
Before you go anywhere. The insurance you buy before you take your trip will be in effect until the policy expires (although this is not a hard and fast rule). Pick a cover word that means something to you. You can choose the exact words for your policy, or you can use any words that are meaningful to you. Think about your typical trip. Most travel insurance covers you against, for example, the risk of illness and loss of luggage. And while not everyone is familiar with food-borne illness, these can be risk factors to consider when purchasing insurance. Consider the length of your trip. You need to consider the length of time you expect your trip to take to determine how much coverage you need.
How Much Does Travel Insurance Cost?
Although coverage can be as low as $0, coverage can be expensive and cover a variety of different areas. The table below breaks down the cost and coverage you get based on the level of coverage you want. Coverage details are based on one of the lower levels of coverage. Travel Insurance: Most comprehensive level.
What Kinds of Coverage Does Travel Insurance Offer?
Travel insurance, like any other insurance product, comes in different forms. While some policies simply cover financial losses, others also cover medical expenses and personal liability (in other words, you can be sued). Before you get into details, it's worth it to make sure your personal circumstances will meet these minimum coverage requirements. What Does Coverage Cost? Travel insurance comes with a range of different costs—from just a few dollars a day, to several hundred or even thousands of dollars. These costs are not all covered up front; you'll also be expected to pay administrative fees, sometimes around 10%, before you can start receiving benefits.
What Do the Different Coverages Cover?
It's key to understand what each type of travel insurance policy covers. Basic Travel Insurance : Coverages include cancellation and interruption coverage, emergency medical assistance, personal injury protection, hospitalization, trip interruption and repatriation—all of which can be valuable when the unexpected happens. : Coverages include cancellation and interruption coverage, emergency medical assistance, personal injury protection, hospitalization, trip interruption and repatriation—all of which can be valuable when the unexpected happens. Travel Protection : Some travel insurance policies offer coverages like medical treatment, lost luggage, property damage, etc. These are similar to other basic policies, but without any broader coverage.
Maybe your dream trip to Europe isn't in the cards, or maybe it is, but that won't stop you from planning your next one. As the saying goes, “there's no use planning for things you can't change.” But if you can ensure your next trip is smooth sailing, the payoff will be even more epic. Source: 10MoneyBlunders.