Travel insurance is typically a short term insurance that is meant to cover medical expenses, financial loss, and other emergencies of travellers. This insurance will cover trips in one’s own country and abroad. Travel insurance can be purchased for one specific trip or on an annual basis. The insurance is designed to cover the traveller or the traveller’s family, depending upon the policy. If purchasing an annual policy, cancellation insurance is not covered.
What does Travel Insurance Cover?
There are three types of insurance coverage. Cancellation insurance is designed to reimburse the traveller if the they are unable to go on the trip because they got sick or if there is a family emergency. It can also be used in cases where the travel company or vessel (example: cruise ship) has gone out of business. Personal effects insurance is designed to cover personal items that get lost, are stolen, or damaged because of weather. And the final one is emergency medical insurance. This insurance is designed to provide adequate medical attention and care if there should be an accident or an illness while away. Additional optional coverage may cover car rental, dental procedures during travel, and death during travel.
How much does Travel Insurance Cost?
Depending upon the type of insurance purchased, it can range from 5 to 7 precent additional cost. So it can add a few hundred dollars onto the base of the amount paid for the trip originally. Policies and company prices vary, so it is wise to shop around for the best rate.
Should a Person Purchase Travel Insurance?
If a person finds themselves traveling often, it is a good idea to purchase cheap travel insurance. Having insurance offers peace of mind in the event of something unexpected happening. There’s no reason not to consider having insurance, especially at a low rate. Some policies that people currently have will cover various issues. For example, a credit card that is used to book a trip, may offer partial or total cancellation coverage. A person’s homeowner or renter’s insurance may cover theft, even if it doesn’t happen at home. Standard procedure is that an airline will cover a person’s baggage for $1500. If traveling with an increased amount of valuables, it is wise to purchase travel insurance. And medical travel insurance is beneficial especially if travel is outside of one’s country.
Where can a Person Buy Travel Insurance?
A person can purchase cheap travel insurance in the country that they live in. Travel insurance can be bought from a travel agent when booking the trip, from a regular insurer, or a specialist in travel insurance. Travel insurance does not have to be purchased at the time of booking and can be purchased right up until before the trip itself or during travel. If a person suffers from a pre-existing condition, they may be required to purchase travel insurance, which should be done a few weeks in advance.
Melisa Youngren is a advocate of cheap holiday insurance for backpackers. She believes all travel insurance companies should offer a product for all types of customers.