Vacations are expensive and life is unpredictable, and these two truths can make people reluctant to plan their dream trips. The good news is that travel insurance is an inexpensive way to alleviate some of those concerns.
What’s Covered
Travel insurance is incredibly customizable, which means that every traveler can choose the benefits that matter the most to them. Generally, however, travel insurance policies cover trip cancellations, trip interruptions, and trip delays.
Trip Cancellations: If travelers need to cancel a prepaid trip for covered reasons, travel insurance will reimburse any nonrefundable costs. Covered reasons typically include illness or injury of the insured traveler or an immediate family member, death of the insured traveler or an immediate family member, or a natural disaster or event that precludes travel to the destination.
Trip Interruptions: If a planned, prepaid trip needs to be cut short due to illness, injury, natural disaster, or another emergency, travel insurance will reimburse for the unused portion of the trip. Travel insurance will also cover the additional costs needed to get the insured traveler back home.
Trip Delays: If a trip is delayed due to unforeseen circumstances, travel insurance will cover additional costs related to the delay (such as accommodation, meals, or additional alternative travel expenses) and reimburse for any part of a prepaid trip that was lost due to these delays.
Extras
Most travel insurance policies cover the three situations listed above, but there are also additional coverage options that travelers can purchase. These include medical care and evacuation, which is critical since many overseas providers require cash up front before any treatment, even in an emergency. Travelers can also choose coverage for lost or delayed baggage; the insurer will cover the purchase of new clothes, toiletries, and other essential items.
Travelers can also choose travel insurance policies that cover the collision/loss damage waiver on a rental car, the fees for rebooking reservations, and hotline and concierge assistance. It’s possible to arrange coverage for nearly any situation, so travelers who don’t want to lose out on any of the money they put down on a trip should contact an agent to discuss what kind of policy would be most beneficial. Travel insurance is a relatively inexpensive way to protect against financial loss when the unexpected happens.