What is travel insurance? Travel insurance is a type of policy that reimburses you for money you lose from non-refundable deposits and payments when something goes wrong on or before your trip. These problems can range from lost baggage to flight delays to medical problems. Do I need travel insurance? I strongly recommend travel insurance! In fact, if you elect to NOT purchase insurance, I'll ask you to acknowledge your decision to decline insurance. Neither one of us wants to deal with the surprise and disappointment of losing your investment in a long awaited trip. Here are some reasons you may need travel insurance:
You stand to lose a lot of money in non-refundable deposits if you cancel the trip. Trip cancellation is the coverage you want. It will cover 100% of the pre-paid money you'll lose, as long as you cancel for a reason listed in the policy,
You're traveling overseas and your health plan doesn't have global coverage. Many health plans lack robust global coverage, or impose high out-of-network deductibles for care outside the U.S. Check your health plan details to see what it provides. Travel medical insurance fills the gap.
You're going to a remote area. If you won't be near quality medical facilities, even a small injury could turn into a major medical event. Medical evacuation coverage will pay to medevac you to an adequate facility.
What is not covered by travel insurance? There are common things not covered by travel insurance. Make sure you read a policy's exclusions so you're not caught by surprise later. For example, a travel insurance policy could have medical coverage but exclude pre-existing conditions. So if an existing condition flares up during your trip, the travel insurance policy won't cover it unless you purchased a pre-existing conditions exclusion waiver.
High-risk activities may not be covered, such as scuba diving. Nor are problems that happen because you were drunk or using drugs.
Medical tourism is also a common exclusion, so if you're going abroad or a face lift, travel insurance won't cover the hospital bills or aftercare.
Is there travel insurance for multiple trips? While standard travel insurance plans are meant to cover one-time trips, frequent travelers should consider an annual travel insurance plan. These plans cover the same issues as a single-trip plan, such as trip cancellation and emergency medical situations. But they also offer the convenience of a one-time purchase for multiple trips.
How much does travel insurance cost? The cost of travel insurance is usually mainly based on the age of travelers and the trip cost. Expect the average cost of travel insurance to be 6% of your trip cost.
