Travel insurance basically protects the traveler in the event of an emergency while away, or if one arises and you are unable to go on your previously scheduled trip. It is an insurance safeguard designed for everyone, and recommended for most travelers, but is especially recommended for families traveling with small children or for newlyweds planning a honeymoon.
Travel insurance is relatively inexpensive, typically about five to seven percent of the trip. It is usually purchased at the time of booking a trip and covers the duration of the trip, or for individuals who travel a great deal, there are policies that give more extensive, continuous coverage. There are many different travelers insurance companies. If you are interested in purchasing this type of coverage and it is not offered by your airline or resort, check with a local travel agent or online for insurance quotes and companies that sell travel insurance. It is possible to cover business, student, leisure, adventure and international travel and these policies cover elements such as delays, including departure and baggage; loss, theft or damage to possessions (including money and travel documents); accidental death or injury; and legal assistance. It may also include flight life insurance, accident insurance, car rental insurance, and some airlines are even beginning to offer lost baggage insurance.
Most travel insurance policies address weather protection, trip cancellation or trip interruption.
Weather Protection. Many resorts in the Caribbean or other tropical locations that are susceptible to hurricanes or other natural disasters often offer weather protection, providing guests a refund or their choice of different travel dates in the event of a tropical storm or hurricane.
Trip Cancellation and Trip Interruption. This type of travel insurance is especially valuable in the event that a member of your family gets sick before the trip and it needs to be cancelled. Some elements of your trip, especially airfare may be non-refundable. Travel insurance with trip cancellation will refund part or all of your otherwise non-refundable travel expenses. Trip interruption is usually less expensive than trip cancellation coverage and will protect you in the event that your trip is cut short as a result of an accident or serious illness. Trip interruption may also cover you in the event that you need to return home because of an illness or death in your family.
Policies for trip cancellation or trip interruption must be purchased at the time you purchase your airline tickets or make reservations, and are usually offered by the airline or hotel. It is usually not necessary to purchase these types of insurance from a separate travelers’ insurance company.
Travel health insurance is typically part of your traditional health insurance coverage. It is important to check with your health insurance provider to find out what specifically is covered when you are away from home.
If you are purchasing an overall travel policy, instead of a policy specific to certain elements of your trip, such as airline travel insurance, it is important to know exactly what will be covered. You should also shop around and compare prices and policies before selecting a travelers’ insurance company.
It is important to ask what the policy specifically covers, such as:
- Bankruptcy of the cruise, tour group, airline, or other provider you plan to travel with
- Specifically which accidents before or during your trip that might prevent travel
- Missed connections or baggage delays
- Emergency assistance, especially valuable if traveling overseas