Are you confused about the extent to which travel insurance can protect you in emergencies during your travel? Or are you wondering how travel insurance can help mitigate trip cancelations or lost luggage? These questions are usually in the minds of travelers, and they are legitimate concerns. If you’re a frequent traveler and you’ve not experienced an emergency like lost luggage, consider yourself lucky because they happen quite often, among many other mishaps that could occur when traveling. So, what does travel insurance cover do in such situations? Well, you’re about to find out.
Without a clear understanding of the role of travel insurance, you may find yourself choosing the wrong insurance policies or worse, being in an emergency without being able to utilize your insurance benefits. Travel insurance protects you from unplanned expenses or financial losses associated with illness, injury, accidents, flight, or other transportation challenges you may experience during your travel. However, you also need to understand the coverage provided by your insurance policy to ensure it meets your travel needs and can give you peace of mind during your travel.
With years of experience in the travel industry, I have witnessed firsthand, the importance of having good knowledge about your travel insurance coverage. Without further ado, let’s get into the details of what travel insurance coverage does so you realize why you need travel insurance, and how to choose the best insurance policy for your travel.
What does Travel Insurance Cover do?
To reiterate, travel insurance protects you from unplanned expenses during your travel. It also provides protection for your well-being as well as your belongings. It is different from life insurance. Travel insurance coverage varies, depending on the insurance policy you sign up for, however, here are some general benefits of travel insurance policies:
Trip cancellation/interruption coverage
Trip cancellation coverage reimburses you for your covered financial losses after you file a claim and the claim is approved. Not all reasons are acceptable enough for people to claim their insurance. For instance, if you simply change your mind without plausible reason, you may not be eligible for reimbursement. Acceptable reasons usually include the death or injury of a family member, sickness of a family member, or sickness of the traveler. For specifics on what trip cancelation allows as a covered reason, ensure you go through the terms and conditions of your policy. Also, if you would like the levity to cancel a trip at any point, you will require the Cancel for any Reason (CFAR) coverage, which will require higher premiums (fees) than the ideal insurance option.
Trip cancellation coverage doesn’t take care of the entire cost of the trip however, it covers up to 60-70% of the nonrefundable cost of the trip, as long as you meet requirements.
Emergency Evacuation Coverage
This coverage ensures that you and your family (if applicable) are protected if someone gets very ill or injured during the trip. The average premium for this coverage varies, depending on the insurance provider, and travel details like age, duration of travel, destination, and health status of the insured person(s).
“The cost of emergency transportaton can run into tens of thousands of dollars or more, and varies based on the traveler’s health condition, care required and their location “ – Durazo
You must ensure that this coverage is among your benefits, especially if you’re traveling to remote areas like jungles or mountains, that don’t have a nearby medical facility.
Travel Delay/Missed Connection Coverage
Travel delay happens to be one of the most common travel insurance claims. Delays could be a result of several reasons like bad weather, natural disasters, etc. These delays sometimes have severe implications like missed connection flights, lateness to an event, and missed prepaid activities, among others. However, with a travel delay/missed connection coverage, you will be reimbursed for expenses incurred if the reason for the delay is included in the policy’s terms and conditions.
The reasons covered by most insurance providers include bad weather and airline maintenance. Also, there’s usually a waiting time before you are eligible for this benefit however, that will depend on the policy’s terms and conditions. Do well to go through them, so you are aware.
Baggage Loss/Delay Coverage
Imagine embarking on a vacation you’ve anticipated for such a long time. You pack your bags excitedly, head to the airport, board the plane, and arrive in Paris, only to be told that your luggage has not arrived. It dawns on you that your bag has important items like toiletries, medications, clothing, etc. With your schedule packed with prepaid activities, you cannot wait for your luggage to be found. In this scenario, baggage delay coverage comes to the rescue.
All this person needs to do is contact the insurance provider and he/she will be reimbursed for emergency purchases which allows him/her to continue the trip without much delay. However, many providers have a waiting time before one can be eligible for this benefit.
Medical Emergency Coverage
This is one significant insurance benefit. Usually, people have health insurance that can cater to them within their home countries however, when traveling, these health insurance are usually not eligible. It’s important to get travel insurance to cover medical expenses when traveling outside the country. Medical emergency insurance usually covers doctor appointments, prescription medications, and emergency transportation. Some policies also cover emergency dental appointments.
Anyone can fall sick at any point during your trip, however, knowing that you have medical emergency coverage gives rest of mind, and allows you to focus on enjoying your trip.
How to Get Travel Insurance
To purchase travel insurance, there are certain steps I would recommend that you follow:
- Research reputable insurance organizations that offer travel insurance. Some renowned insurance organizations include TravelSafe Insurance, Seven Corners, Generali Global Assistance, and many more. Leverage Squaremouth to compare different travel insurance options and decide which works best for you.
- Go through the available plans on the organization’s website. Lookout for the coverage, limits, and price to determine which is best based on your budget and preferences.
- When you decide on the plan you prefer, you can enroll right there on the website or reach out to the number on the website for directions.
- Provide all the necessary information needed to enroll, including personal details, the itinerary for your trip, and any other information requested.
- Thoroughly review the terms and conditions of your plan so you’re well aware of your coverage limits and eligibility requirements for you to make claims.
- After you’ve thoroughly reviewed the fine print, you can proceed to pay the premium for the insurance.
What does Travel Insurance not Cover?
Travel insurance covers most people’s emergency needs however, they don’t cover all problems, especially if it is not covered under the terms and conditions of the policy. For example, if you have pre-existing medical conditions, any injury, illness, inconvenience, or loss you may experience on your trip related to that pre-existing medical condition may have no coverage. Other situations where travel insurance would not cover include:
- Injuries sustained as a result of engaging in high-risk activities like scuba diving, skydiving, mountain climbing, etc.
- Changing your mind about traveling for no concrete reason. Canceling a trip simply because of fear of flying or because you’re in the mood to stay behind at home wouldn’t be eligible for travel insurance in most cases, unless this person enrolls for the Cancel for any Reason. Other than this, reasons usually permitted insurance include the death of a family member, loss of job, or any other reason indicated in the terms and conditions
- Natural disasters that commence before enrolling for insurance: If you get the insurance before a natural disaster starts, you can get coverage however, if you enroll after, you may not be covered for any losses as a result of the natural disaster.
- Injuries that happen as a result of drinking or drugs
- Losses or expenses from illegal activities
Bear in mind that this will vary, depending on the insurance company you’re going for. It is necessary to go through the terms and conditions of your plan to know the exact limitations of your coverage.
How Much is Travel Insurance
The cost of travel insurance varies based on the trip length, age of travelers, and cost of the trip. Generally, premiums usually range from 4% to 10% of your total pre-paid, nonrefundable trip cost. For instance, if the cost of your trip is $100,000, your travel insurance will fall between $4,000 – $10,000. Before enrolling with a travel insurance organization, ensure you properly research to compare different travel insurance prices to see the one that works with your budget and has all you need for peace of mind during your travel.
Here’s a tool you can use to Budget Your Trip
To sum it up, travel insurance does a lot during travel, from providing security from unexpected incidents to giving you total peace of mind. To re-emphasize, ensure you review the policy details carefully before opting for any insurance so you’re fully aware of coverage limitations. The importance of this cannot be overemphasized. I also encourage you to check out other blog content to learn more about everything travel. Also, leave a comment below if you have any questions or contributions. See you in the next one!
