While buying travel insurance makes every trip cost slightly more than it otherwise would, this coverage can also lead to considerable financial savings. If you become injured in a remote location and require emergency transportation, you come down with a sudden illness or flight cancellations leave you stuck somewhere for days, benefits in these plans can pay for medical expenses, incidental expenses like meals and hotel stays and more.?
But, with so many travel insurance providers and plans to choose from, nailing down the right coverage with adequate policy limits is no easy feat. You also may not need all the benefits most travel insurance plans offer, or you may need more coverage than average to account for additional risks you have or the high cost of certain types of trips.
What Does Travel Insurance Include?
If you're on the hunt for travel insurance, working with an experienced travel agent can help you narrow coverage options to find the right fit. You should also understand the types of coverage these plans tend to include, when they apply and what they are made to protect against.?
Common benefits found in travel insurance plans include the following:
Trip Cancellation Insurance?
Trip cancellation coverage can kick in when a trip must be canceled for reasons beyond your control, such as the death of an immediate family member or a natural disaster making future travel impossible. This coverage typically applies to up to 100% of prepaid travel expenses, although a fixed dollar amount in coverage can also apply.
Trip Interruption Insurance?
Trip interruption insurance comes into play when a trip comes to an end after it already begins. Coverage can apply when a trip is interrupted for a covered reason, such as the traveler having an accident or becoming ill during vacation. Coverage is typically for more than 100% of prepaid travel expenses since it reimburses travelers for prepaid expenses and additional costs required to return home.
Trip Delay Coverage
Travel delay insurance applies when a trip delay leaves travelers incurring additional costs. Delays typically need to be for at least three hours, six hours or longer depending on the plan, and this coverage pays for incidental expenses and hotel stays while consumers wait to depart.
Emergency Medical Coverage
Emergency medical coverage is crucial for overseas trips where American health insurance policies and government-sponsored health plans like Medicare don't apply. This coverage can pay for hospital stays, emergency medical treatment, prescription medication, X-rays and more when someone becomes sick or injured away from home.
Emergency Medical Evacuation
Evacuation coverage pays for transportation to the nearest hospital in the event of an emergency, whether it needs to happen in an ambulance, a helicopter or another mode of transportation. This coverage can also pay for transportation back to your home country so you can rest and recover.
Lost Luggage Reimbursement
This coverage reimburses travelers when their luggage and its contents is lost or stolen while in the care of a common carrier like an airline or cruise line. Coverage typically has a dollar limit that varies by policy.
Baggage Delay Insurance
Baggage delay insurance can pay for incidental expenses that occur when luggage is delayed by a common carrier for a certain period of time, usually at least six or 12 hours. This coverage can pay for items travelers need to buy while they wait, including clothing, charging cords for electronics, toiletries and other essentials.
Additional Travel Insurance Benefits
Most travel insurance policies also come with concierge services or access to a 24/7 hotline travelers can call into for emergency help. There are also additional benefits you can purchase for even more coverage, including these optional coverage options.
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Cancel for any reason (CFAR) coverage: Optional cancel for any reason (CFAR) coverage helps travelers get reimbursed for some of their prepaid travel expenses when they cancel a trip for any reason at all. Adding this protection leads to higher insurance premiums, but the additional peace of mind can be worth it.
Pre-existing medical conditions waiver: Pre-existing medical conditions can be covered with some policies if certain conditions are met, such as the traveler buying coverage within 15 or 21 days of making an initial trip deposit. Coverage for pre-existing medical conditions varies by company and policy, so make sure to check requirements if you need this protection.
Rental car protection: You can also get rental car insurance with most travel insurance policies, although availability and coverage limits vary.
How to Find the Right Travel Insurance Coverage
The benefits listed above are the main types of coverage you can get with travel insurance, but remember that policies, included coverage, limits and exclusions vary from one company to the next.?
This can be both a blessing and a cruise. While having more policies and coverage types to choose from lets you tailor coverage to your exact needs, it can make the process of buying travel insurance seem overwhelming.
Our advice? Look for plans that offer the most amount of coverage you can afford, especially when it comes to travel health insurance and emergency medical evacuation coverage. Also make sure you get coverage for pre-existing medical conditions if you need it, and that you understand any exclusions that apply. And if you feel too overwhelmed to shop around and read over various policies and their details, reach out to an experienced travel agent for help.
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