Travel Insurance Might Be A Smart Move
‘Tis the season in the Northern Hemisphere for going away on holidays or vacations. (Or in the Southern Hemisphere, if you’re reading this between January and March. We can’t control these things.) Regardless of what they’re called in your country, travel insurance exists to protect you from unforeseen circumstances.
Have you been in a situation where you’ve had to cancel part or all of your trip? In awful scenarios, perhaps you even know someone close to you who has had to leave their trip because of a medical emergency. These are a few things that happen sometimes, and insurance coverage for travel addresses that life can get in the way.
What is travel insurance, and why should you consider it?
Travel Insurance Basics
The fact is, if you’ve booked a flight through a source like Expedia or Travelocity, you have been asked to buy travel coverage. They may prompt you to purchase a protection plan in case you must cancel or reschedule your flight. In many cases, this is not otherwise possible.
Any comprehensive travel insurance policy can provide, among other things:
- Reimbursement for certain non-refundable trip expenses if you must cancel.
- Payment for financial losses that occur as a result of trip interruptions, such as missed connecting flights.
- Coverage for stolen, lost, damaged, or destroyed personal effects and baggage.
- Medical evacuation and repatriation coverage in the event of illness and/or death.
- Coverage for vehicle rentals.
Costs Associated With Travel Coverage
All of the above coverage examples fill potential needs while away from home. Losing baggage or traveler’s checks, missing a flight, or having to cancel a flight or hotel room could potentially cost thousands of dollars. Just as importantly, it can cause aggravation, and who doesn’t hate that? Having this coverage, like any other insurance, puts a safety net into place.
The premium of your travel policy depends on the dollar-value size of your trip. If you’re taking a lavish $10,000 vacation to the Mediterranean (somewhere like Capri maybe — sign me up), you will pay more than someone on a $2,000 jaunt to Florida. As a general rule, the premium works out to around 5 to 10 percent of the trip’s cost. Some companies go a little lower or a little higher.
For obvious reasons, the more coverage you purchase, the higher the premium. Economy or basic travel insurance packages will be closer to the 5 percent mark.
Who Writes Travel Insurance?
AIG Travel Guard is a program that offers varying levels of coverage. They are a name-brand insurance carrier.
Allianz is another company with a travel coverage offering through Global Assistance. Their plans include annual (for those on more frequent trips), domestic, and international travel.
InsureMyTrip uses a number of travel insurance providers on their platform. These include, but are not limited to, Allianz, AIG, Berkshire Hathaway, Nationwide, and Crum and Forster.
Remember, please review our disclaimer page to reinforce our position on making insurance decisions. Talk to your agent or broker about the kinds of coverage and limits that are right for you.