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Jetting off on a trip is exciting but comes with many tasks to do beforehand, so it’s vital to be prepared. You must pack your suitcase, gather travel documents, arrange transportation, and more. But the most important item on your checklist is one you might not have necessarily considered: purchasing travel insurance.
You may not think you need this type of insurance coverage, especially if you’re only planning a short trip — or if you travel frequently without incident and feel confident nothing will ever go wrong. However, it’s better to be safe than sorry should any issues derail your travel plans. Learn why traveler’s insurance is vital for your upcoming trip and all the ways it protects you when the unexpected happens.
This guide reveals the top six benefits of holding travel protection plans, the potential consequences of traveling without insurance, and tips for purchasing a plan that works for you.
Imagine booking a vacation months in advance. You’re so excited to travel to a new, exotic place only to come down with an illness right before you’re set to leave. Being forced to cancel the trip is something no traveler wants, but carrying insurance means you won’t have to lose all the money you put toward your vacation.
Basic trip insurance plans usually provide reimbursement if you have to cancel your trip because of illness, so purchasing insurance coverage is wise in case you get sick right before your trip.
Sometimes, your plans will change for other reasons. Experts recommend purchasing an insurance plan that offers Cancel For Any Reason coverage, which reimburses most of your expenses if you don’t end up taking the trip for reasons like:
It’s wise to get travel insurance when you book trips several weeks or months in advance. If your plans change leading up to the trip, your coverage can offset the cost of your expenses, so you don’t take a huge financial loss if you must cancel the trip.
Flying to a destination comes with the possibility of an airline losing your luggage or ending up with damaged contents after the mishandling of your suitcase. Dealing with lost or delayed luggage forces you to purchase new clothing and toiletries for your trip. Without vacation insurance, you’ll have to cover the costs of these unexpected purchases without relief.
Say you’re traveling for business and pack an entire suitcase with business attire for the workday and casual outfits to wear as you explore the area. If an airline loses your luggage, you’ll have to find a new wardrobe for your business meetings, which can become costly. Carrying trip insurance means you can get reimbursements for your clothing expenses and the costs of replacing damaged items.
Along with your luggage, your passport is another crucial item to have with you when traveling. Losing your passport or having it stolen on your trip can lead to many hassles and unexpected costs. You’ll have to obtain a replacement passport, which can rack up your travel expenses.
Comprehensive insurance policies cover the costs of replacing your luggage and passport if necessary. To safeguard your travel documents from theft, carry them on you while traveling and lock them in a hotel safe, if possible.
Your dream vacation can become a nightmare if you become sick or injured mid-trip. Your standard health insurance may not cover the expenses of seeing a doctor or receiving emergency medical care abroad. A trip insurer provides global travel assurance, so you don’t have to worry about paying overseas healthcare expenses.
According to a survey by the consumer information brand Which?, the most common type of travel insurance claim is for emergency medical costs. The study finds that 28% of respondents filed a claim for medical costs while traveling, including indirect costs like ambulance transportation. Claims for trip cancellation fall slightly behind at 27%.
International travel coverage protects you from the high costs of emergency healthcare, including transportation. The Center for Disease Control and Prevention reports that medical evacuation, such as transporting sick travelers from a cruise ship or remote location, can cost upwards of $100,000. Travel with caution and purchase travel medical insurance to cover the costs of healthcare services abroad, including:
While travel medical insurance provides a financial safety net if the unexpected happens, it doesn’t mean you can seek all kinds of medical treatment during your trip. Insurance policies detail their conditions and exclusions, which usually limit coverage to emergency care. Don’t expect coverage to apply to any of the following healthcare services while you travel:
It’s worth noting that coverage for pre-existing conditions varies for each insurance provider. Most travel insurance plans will cover healthcare costs for pre-existing conditions as long as you meet their requirements. Look closely at each policy to determine your eligibility and coverage exclusions.
Any frequent traveler knows that plans can change on a whim. Flight delays or cancellations can turn your plans upside down, leaving you scrambling to reach your destination. Whether you have a direct flight or need to catch a connecting flight, the weather, plane mechanics, or another unforeseen issue can throw a wrench in your itinerary.
Travel protection plans account for these sudden disruptions. If you’re unable to get your connecting flight, your insurance policy will cover any necessary expenses for adjusting to your new travel plan, such as:
Remember that travel protection isn’t limited to air travel. If you’re embarking on a cruise vacation and miss the ship’s departure from one of its ports, travel insurance allows you to get on board at a different port so that you can enjoy the rest of your trip. Cruise-specific policies include these expenses, so you don’t have to miss out on a portion of your vacation and pay extra for it.
Are you about to embark on your first-ever trip? Do you frequent airports as a business traveler or adventurous retiree? Travel insurance is a smart choice for all travelers.
Policies vary by provider and the traveler’s needs. The price you pay for a policy depends on the following factors:
For example, if you’re a 30-year-old traveling alone for a three-day business trip in the US, your insurance cost will remain low since you only opt for limited coverage. On the other hand, a 65-year-old retiree embarking on a four-week trip across Europe will likely need more coverage to account for possible delays, lost luggage, and emergency medical care. Insurance providers work with you to accommodate your needs and help you prepare for mishaps while traveling.
You should select a plan based on how frequently you travel. Most providers offer single-trip insurance as a fallback plan, while others may provide multi-trip or annual travel insurance plans. What’s the difference between the two?
Single-trip plans cover you from the time you leave your home until the date you return from your trip, regardless of the duration or number of destinations you travel to. Multi-trip insurance often provides coverage throughout the calendar year and is recommended for those who plan at least three trips within that span.
Comprehensive travel insurance can cover expenses for any catastrophe that derails your trip without breaking the bank. A Forbes report found that policies account for roughly 6% of the vacation’s total price. Below is a breakdown of how much a trip protection policy will cost in relation to your total travel expenses:
A travel survey from Business Insider shows that 77% of respondents paid less than $2,000 for their recent trips. Using the 6% benchmark to determine the cost of insurance, these travelers can receive comprehensive coverage for only $120.
The Forbes report notes that insurance costs usually don’t differ to cover multiple travelers versus a single traveler. Therefore, if a single traveler and a family of four each spend $5,000 on a vacation, they will receive similar rates for their trip insurance.
One key factor that plays a role in travel insurance costs is the age of the insured. Providers tend to give lower rates to younger travelers since they are usually at little risk of needing emergency medical care.
Forbes’ analysis of insurance costs finds that travelers between the ages of 20 and 59 can pay anywhere from 4% to 6% of their total trip costs in insurance. That percentage climbs to 8% for those in their 60s and 11% for travelers in their 70s. Those 80 or older can expect to pay 18% in trip insurance.
While insurance provides a safety net and remains relatively inexpensive for most travelers, you’ll get the best rate while you’re young. Keep in mind that costs may go up based on specific policy coverage, such as Cancel For Any Reason coverage and medical expenses greater than $250,000.
Given the uncertainties surrounding travel, purchasing a trip insurance policy certainly has its benefits. You’ll be able to protect your finances should anything impact your plans. The top advantages of holding vacation insurance include:
Trip insurance is largely beneficial for all travelers. However, there are a few drawbacks to consider when selecting a plan. These include:
With any luck, all your trips will go smoothly, and you’ll never need to make an insurance claim. However, it’s best not to risk financial losses because you don’t have travel insurance before you head on vacation. Insurdinary helps you pick a plan that fits your budget and needs so you can travel with confidence.
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