Travel insurance is designed to help travelers when the unforeseen happens. According to the U.S. Travel Insurance Association, the most popular travel insurance is referred to as trip cancellation, often sold as a package, or comprehensive plan.
A group package can include three types of coverage in a policy.
For example, a policy like this can protect you from losing nonrefundable travel expenses, such as, airline tickets, cruise expenses, and baggage loss. It can also cover unexpected expenses, such as, lodging, meals, and incidental expenses when bad weather delays your trip.
Medical expenses can also be covered, from emergency room visits, to medical evacuations – even extended hospitalization for sickness and severe injuries. And travel insurance can provide services, such as, coordinating medical care, finding legal services, securing accommodations, and replacing a stolen or lost passport.
Most travel insurance policies range from four to eight percent of your total trip costs and will more than pay for themselves in an emergency. Travel insurance companies report high satisfaction among clients who have been affected by illness, injury, or natural catastrophe while traveling. In a 2012 survey of people whose travels were impacted by natural catastrophes, for instance, 96 percent of those who had travel insurance reported satisfaction with their travel insurance.
Always Do Your Homework Before Purchasing Travel Insurance
When you’re shopping for travel insurance, do your homework, because not all policies are alike, and they are heavily regulated by states. You will want to read policy information first to understand which circumstances are covered and which are excluded.
Last year we wrote a small guide to help you read an insurance policy.
Purchase Travel Insurance Wisely
When it comes to buying travel insurance there are many choices. And there are a number of ways to purchase it – travel agents, airline websites, online travel agencies, insurance brokers, and other insurance companies.
If you are planning your next adventure, we recommend you do the following:
- Review policies to understand coverage.
- Understand, sometimes you get what you pay for. Less expensive policies may not cover all of the circumstance that would otherwise give you comprehensive protection. Being over protected is better than being under protected.
- Know that most travel policies have a “free look” or refund period. That’s when you should review the policy and retain a full refund if it doesn’t meet your needs.
