Travel Insurance

Protect Your Vacation

Traveling somewhere new is one of the most exciting things you can do, and Americans like to travel a lot! According to the US Travel and Tourism Association Overview, domestic travel increased 1.7% from 2018, for a total of 2.3 billion people taking overnight trips in 2019. An increase in travel means more chances for mishaps, travel insurance can protect you though.

Whether you’re planning to explore the Amazon jungle or get some Vitamin D in the Caribbean, you want to ensure that you enjoy your vacation with peace of mind. While doing new things and venturing out of your comfort zone does wonders for your personal growth, it also makes you exposed to risks and unpredictability. Don’t know where to start? Just sit back and relax!

In this article

What is Travel Insurance?

Travel companies will give customers the option to purchase travel insurance when they book their flights, hotels or travel packages. Travel insurance provides you with protection against any financial losses due to sudden and unfavorable events related to your journey. You’re protected against certain financial losses such as a delayed or lost suitcase, or a last-minute trip cancellation due to a medical emergency. Most of the travel coverages includes 24-hour support for help with things like re-booking flights, replacing lost passports, cash wire assistance and much more.

Why do you Need Travel Insurance?

We don’t want to think the worst, but it’s better to prepare than sorry! Sometimes even the best planned trips can go wrong when the unexpected pops up. Without travel insurance, all your plans could go up in smoke and cost you significantly. If you’re still wondering if you need travel insurance, here’s a few reasons to convince you:

Trip Cancellation Protection

You can get compensated for any prepaid costs when you must cancel for a “covered reason”. Covered reasons include situations like serious injury, illness of the policyholder, death, or natural disasters that makes your destination uninhabitable.

Emergency Medical Coverage

Medical emergencies are expensive, especially when you’re traveling overseas. Your travel coverages include emergency medical benefits that will help you pay for any covered medical emergencies that occur during your trip. Moreover, it will pay for medical transportation to the nearest medical facility and your home if necessary. 

According to  Allianz Travel Insurance, travel insurance may even pay these costs upfront if they are deemed true emergency expenses. Also make sure your insurance includes coverage for trip cancellation or trip interruption in case you have to cut your trip short due your medical emergency.

Trip Delay Protection

Don’t let small mishaps ruin your trip. Travel insurance will provide you with compensation for accommodations and lost pre-paid expenses due to a covered delay of six hours or more.

Affordable Peace of Mind

If you can spend a large amount of time looking for the perfect destination and crafting an unforgettable itinerary, affordable travel insurance is also easy to find. Insurance looks expensive, but it can save you a lot of time, energy and money. You’re already paying a lot of dollars for that one perfect vacation, and separating out a little bit for insurance in your budget can give you peace of mind. 

Make sure you’re protected as you enjoy the best days of your lives!

Types of Travel Insurance Coverage

1. Delayed or Lost Baggage

We know how it feels to lose your baggage, especially when you’re going on a trip to a new place. Delayed or lost luggage is one of the most frequent travel issues. A 2018 report from SITA Baggage Insights states that 24.8 million bags were mishandled (delayed, stolen, lost or damaged) worldwide! To save you from all that hassle, travel insurance protects you from lost, stolen or delayed baggage during your trip. Depending on your coverage, you can protect yourself on the way to and from your destination and home.

2. Travel Delays and Cancellation

Per the Bureau of Transportation Statistics, 19% of US flights were delayed and 2% were cancelled in 2019. Travel insurance will compensate travelers for their expenses up to the maximum amount, determined by the minimum number of hours delayed. Such expenses could include hotels, meals, transportation, etc. that are incurred because the insured could not get to where they were going as originally planned.

 

what is travel insurance

3. Accidental Death and Flight Accident

Flight accident policies provide coverage for deaths or accidents occurring during a flight. The plan will pay benefits to the surviving receiver if during the flight an accident occurs that results in disability, death or injury to the traveler or a family member accompanying the traveler. If you already have a life insurance policy, accidental death coverage may not be necessary.

4. Short and Major Term Medical Coverage

Depending on your policy, short-term coverage includes policies if you’re traveling from five days to one year, whereas major policies are for longer trips ranging from six months to a year or longer. Medical coverage will help you cover any doctor fees, healthcare facility fees, lab fees and other necessary medical expenses that occur on your trip.

Before traveling to any foreign land, the U.S. government encourages Americans to find out whether their health insurance covers them while abroad and which countries are included in their coverage. For instance, a policy may not cover the costs if the insured is traveling within Europe, but will cover them in Canada.

Make sure you’re protected as you enjoy the best days of your lives!

When can You Skip Travel Insurance?

Travelling can be an investment. The decision to purchase travel insurance comes down to two factors: medical and financial risks. But there are cases where travel insurance may not be necessary. So, if you’re not spending a large sum on your trip, it’s really not worth the investment.

1. You can skip it for domestic road trips.

Are you planning a road trip to the Southwest? Or heading to Florida to meet a friend? Traveling within the country is typically less expensive and last-minute trips don’t require travel insurance. Also, your medical insurance plan will cover you for any emergency medical situations.

2. You can skip it if your credit card offers it.

Chase Sapphire Preferred & Reserve credit cards provides you with built-in travel benefits such as trip cancellation, baggage delay insurance, and trip delay to name a few. For example, if your trip is cancelled due to illness or extreme weather, you will be compensated for pre-paid, non-refundable travel expenses up to $10,000 per person and $20,000 per trip. Before you invest in purchasing insurance, it’s a good idea to check your credit card and see what travel benefits they offer.

how much does travel insurance cost

How to Choose a Travel Insurance Plan?

Every insurance provider will have different packages, deals and price ranges. But how do you know which is the one for you? The first and foremost step is to get a quote from various insurance companies. When you provide your personal information as well as your trip plan, it becomes easier for the provider to recommend you a travel insurance policy. You’ll then be able to better compare the benefits and price of each provider.

According to the US Travel Insurance Association a policy will generally cost you between 4% to 8% of your total trip. However, even a budget conscious traveler can find an insurance package that will meet their needs at an affordable rate.

Get the Most from Your Travel Insurance!

Don’t wait for the right time to buy travel insurance as the best time to purchase is as soon as your trip has been arranged. The earlier you purchase travel insurance, the bigger your coverage window! Since pre-existing medical conditions will not be under all plans, you must purchase an insurance plan 14 days prior to making your initial trip deposit.

You can always request a refund if your plan doesn’t satisfy you. It is one of the reasons why it’s imperative to read over your policy carefully. As a responsible insurance buyer, you should know what you’re purchasing and if it’s worth the cost.

Protect Your Vacation!

When you travel don’t you want your trip to be worry-free? You can always better plan your trip and purchase travel insurance to protect you and your family. Traveling to a new city or foreign land is lots of fun, but it’s not much fun if you get into an accident or lose your baggage filled with souvenirs. With travel insurance you can protect yourself from these mishaps and you can focus on enjoying your trip.

Make sure you’re protected as you enjoy the best days of your lives!