If so, you’re probably researching travel insurance options. After all, you want to protect both your health and your investment.
But let’s be honest -- you’re probably experiencing information overload, too. That’s because sorting through the many travel insurance options on the market can feel like you’re looking for a needle in a haystack.
And if you’re new to travel, you might not even know what travel insurance is at all. So all of those coverage offers you receive once you book your trip can be mind-boggling.
Simply put, travel insurance is insurance that you take out specifically for travel. It can cover lots of situations -- from the cost of a cancelled trip to the financial burden of unforeseen medical expenses.
Unfortunately, finding the right fit can be confusing. The fine print can seem darn near impossible to understand. Couple that with a pushy salesperson, and many people give up.
So just where do you start when it comes to purchasing travel insurance?
The process of purchasing travel insurance begins with understanding your needs and what to look for in the travel insurance market.
Comprehensive Travel Insurance
The first thing to think about is how much you want your travel insurance to cover. According to Travel Insurance Review, the option that covers the most territory is comprehensive trip insurance. This is the type of plan that most people would think of when it comes to covering an entire trip.
Comprehensive travel insurance is a one-stop-shop of sorts. Many policies cover everything from trip cancellations to hurricanes. They also cover medical emergencies and evacuation from a country in the event of medical need.
These types of plans are great for foreign travel, travel to remote areas and expensive vacations, like upscale cruises. However, you need to read the fine print to see just what is covered and what isn’t when choosing an all-inclusive option. Don’t skip that step.
Travel-Related Medical Insurance
The second option to consider is travel-related medical insurance without the extra add-ons offered with total trip insurance. If you don’t want a package plan, this is your way to cover medical expenses. Medical insurance is important if you’re leaving the country. After all, you don’t want to rack up medical bills in a foreign country if your regular insurance doesn’t cover foreign travel.
When it comes to travel-related medical insurance, it’s important to read between the lines. Experts say to choose a policy that specifically covers emergency medical evacuation. If you’re going on an action-packed adventure, experts say to double check to make sure that adventure travel is covered under the policy you choose.
It’s also essential to clarify that there is a 24-hour number that you can call in your native language in the case of an emergency. If you’ve had an accident in the middle of the night, someone needs to be available to receive your call for help -- and you want to be able to understand them.
Further, investigate whether or not the plan that you choose covers the cost of bringing your body home in the event of death. As terrifying as this sounds, it saves your family transportation expenses if death occurs.
Cancellation Insurance
You may want to look for a policy that includes cancellation insurance, which is said to be a part of a package deal. Travel columnist Ed Perkins reports in an article published in the Chicago Tribune that it’s important to be sure that your insurance includes the option to “cancel for any reason,” as opposed to cancelling for certain covered reasons. Be aware that the insurance you purchase may not cover pre-existing medical conditions when it comes to cancelling a trip. That said, it may be possible to sidestep this reality by purchasing insurance very early.
Consider annual insurance if you travel a lot. According to Travel Insurance Review, these plans are a one-stop-shop that will cover you for a whole year. These are said to be a good choice if you travel a lot for work. And they’re great for those who are retired and want year-long coverage so that a new policy doesn’t have to be taken out for each trip.
Does Your Current Policy Cover Travel?
Now that you know what options are out there, it’s important to think about what coverage you already unknowingly have. Before you take the leap of purchasing any policy, find out what your regular insurance covers.
According to Today, lots of homeowners’ and renters’ insurance policies can cover vacation snafus like theft or loss. Health, life and auto insurance policies may (or may not) apply to other countries. And, of course, airlines will pay if bags are lost, so check into it.
Another place to look for coverage is through your credit cards. Credit card companies may help when it comes to covering losses. For example, Today says that the American Express Platinum Card often covers accidental death and dismemberment as well as losses associated with rental cars and bags.
Once you’ve done this, you’ll want to look at which insurance policies appeal to you. According to Today, this should start with learning different options available. In this process, look for third-party insurers that are not associated with the tour or cruise company you use. Find a time-tested, reputable insurance company with great reviews, to start.
Consider which questions to ask when you’re interviewing companies. For example, Today says to find out whether or not disasters are covered. Further, learn which things are NOT covered in the way of restrictions. And know exactly what is covered medically and how this process works. Find out how you’ll be reimbursed if you make a claim. Will you pay up front? If so, when will you be reimbursed -- and how?
Finally, consider using a comparative travel insurance website. These sites operate in a similar manner to Expedia or Orbitz in that they show you many different options. This way, you’ll be aware of many companies' options.
Happy traveling!