Guide to Travel Insurances

Travel insurance covers protects you from misfortunes when traveling. Read more about travel insurances below and compare different travelers insurance options.

Your Complete Guide to Travelers Insurance

best travel insuranceHave you ever been forced to cut a trip short due to unavoidable circumstances? Unexpected events such as inclement weather or sudden illness can quickly derail your budget. Travel insurance can ease the anxiety of such interruptions by providing a safety net.

Travelers insurance can address the financial impacts of problems as they arise during travels. Travel trouble can be more inconvenient than expected and some of it can be costly.

What is Travel Insurance?

Travel insurance is an insurance policy that is intended to cover medical expenses, flight accidents, trip cancellation and other losses incurred during transit. It is not mandatory to purchase travelers insurance, however, we strongly recommend that you do.

Policies are sold for single trips or specific pre-determined time frames such as one year. Just like other types of insurances, travelers insurance policies cover specific events. Premiums are paid upfront when the policy is purchased or on renewal dates.

The covered risk may vary depending on the policy type, but typically include:

  • Trip cancellations
  • Medical treatment while on vacation
  • Emergency Evacuations due to physical perils
  • Theft and other crimes while traveling
  • Accidental death
  • Lost or delayed baggage

Trip Insurance: The Most Common Type of Travel Insurance

cheap travel insuranceTrip insurance is the most expensive form of travel insurance because it is comprehensive. There are two categories that fall under trip insurance: single trip insurance and annual trip insurance.

Single trip insurance covers discrete trips during the entire duration of a single vacation, from the moment you leave your house until you return. Premiums for single trip insurance varies significantly and are dependent on factors such as the traveler’s age, coverage limits and the insurer.

Annual trip insurance policies are the best insurance for frequent travelers. After a year, they can be renewed indefinitely. Most insurance companies will offer annual plans for single travelers and couples. Minor age children are included at no charge.

Annual trip insurance is considered cheap travel insurance because you pay the same premium regardless of how much you travel.

These travel insurance policies are cost-effective especially for people who live away from home for extended periods, including foreign service employees and students studying abroad.

Single trip policies and annual trip policies differ in that single trips have generous coverage for trip interruptions. These are the most commonly invoked covered events. Annual policies have limited or non-trip interruption and cancellation coverage.

Covered Reasons for Trip Cancelation

Trip cancelation coverage reimburses you if you need to cancel your trip before departure. Covered reasons to cancel trip include:

  • Sickness, injury or death of the insured or a traveling companion
  • Laid off from work
  • Hurricane cancels the flight
  • Jury duty
  • A terrorist incident in the destination city

Medical Emergencies Abroad

Medical emergencies are often overlooked since most people assume their existing health insurance will cover medical emergencies abroad. Outside the US, most companies do not provide coverage and Medicare does not cover abroad expenses.

Medical expense coverage will cover dental care and accidents when you travel abroad.

Additional Coverage with Travel Insurance

When people search for the best travel insurance, they often look for additional coverage that comes with it. Additional coverage would include life insurance, including accidental death. Hazardous activities extend the coverage to sports activities like SCUBA diving.

Another additional coverage is rental car collisions, which replaces your personal insurance. Identity theft also provides services to help theft victims while traveling.

How to Choose Cheap Travel Insurance

Travelers Insurance

Once you understand what travel insurance is and the options available to you, the next step is to decide on the kind of travel coverage you need before searching for deals. It is also good to be sensible about the excess amount you have to pay towards any claim.

Check what is already covered by your home insurance policy. There is no need to seek travel coverage for personal possessions when your home policy might cover it.

Some travel insurance companies will exclude anyone above age 65 or anyone with pre-existing medical conditions. Check travel coverage policies for age limits and medical exclusions.

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