Navigating the Complex World of Travel Insurance: A Guide for Smart Travelers

 

Traveling can be an exciting and enriching experience, but it also comes with a certain level of risk. Whether you're planning a mini-break or an international tour, unexpected circumstances like injury, illness, flight delays or natural disasters could cut a trip short, leaving you with unforeseen costs. This is where travel insurance comes in, it helps to keep you financially protected in case of such unexpected events.

As a smart traveler, it's important to understand the ins and outs of travel insurance to ensure that you are protected in case of unexpected events. As Steve Dasseos, president of TripInsuranceStore.com, said, "I don't know how people without insurance backgrounds figure out insurance."

The first thing to consider when thinking about travel insurance is whether you actually need it. According to John Cook, president of QuoteWright.com, "Every person has their own level of risk tolerance." Travel insurance comes in two major flavors: medical and "trip cancellation" (which includes baggage and car insurance.)

Travel medical insurance is potentially the most critical (in fact, some countries won't let you in without it), but you may already be covered. It's important to have a heart-to-heart with your own health insurance company about what happens if you're injured overseas. Will they pay your medical expenses? If you're heading somewhere without a decent healthcare system, will they pay for a medical evacuation? If something goes wrong, how can you reach them from abroad? What's the amount you're covered up to? Medical evacuations can cost $50,000 or more, so it's important to make sure you don't max out your own medical plan.

When it comes to trip cancellation insurance, is the thorniest to deal with because it has so many ins and outs. You can get coverage for trip cancellation, which means not going on your trip at all. Trip delay or interruption coverage covers being stuck in the airport or missing a connection to a cruise. Baggage coverage gives you money if a travel supplier loses your luggage. Even there, you should check around for existing coverage. Some credit cards, such as the American Express Platinum Card, come with baggage coverage; you may also have some travel baggage coverage as part of your homeowner's policy.

However, it's important to note that travel insurance policies typically exclude epidemics and pandemics. According to Allianz Global Assistance, a travel insurance provider, "Trip cancellations and trip interruptions due to known, foreseeable, or expected events, epidemics, or fear of travel are generally not covered." With the ongoing COVID-19 pandemic, it's important to review your travel policy and understand what exclusions apply.

When shopping for a policy, look for these benefits:

• Trip cancellation coverage
• Travel medical and major medical
• Emergency medical evacuation
• Accidental death and dismemberment
• Baggage loss
• Cancel For Any Reason (CFAR) policies

It's also important to note that travel insurance usually costs between 4-10% of a trip's price. For example, for a trip that costs $5,000, travel insurance could range from $200 to $500 depending on the coverage.

One way to make sure you're getting the right policy is by using comparison sites like InsureMyTrip.com, CoverTrip, or Squaremouth. These sites allow you to compare different carriers based on both price and coverage, and even provide verified customer reviews to help you feel confident about the policy you're purchasing. Additionally, many travel booking sites, like Expedia, offer the option to purchase travel insurance through a third-party provider.

In that light, travel insurance remains an important consideration for any trip, big or small. Understanding the different types of coverage available and what you may already be covered for is crucial in order to make an informed decision about the level of protection you need. Remember to review your policy for exclusions and consider factors such as trip cancellation, medical coverage, and baggage loss when shopping for a policy. With the help of comparison sites and verified customer reviews, you can ensure that you're getting the right policy for your needs at a fair price. Ultimately, investing in travel insurance can give you peace of mind and financial protection, allowing you to fully enjoy your travels without worrying about the unexpected.