The excitement is building. You are finally booking the trip that you have been planning for months. But what about travel insurance? Is it something that you should purchase?
Do You Already Have Coverage?
Travel insurance covers a variety of situations such as medical expenses, trip cancellation, lost luggage and travel delays caused by weather, among other things. You must first get an idea of what type of travel insurance you might want to purchase because not all policies cover the same things. In addition, a homeowner’s or renter’s policy, medical insurance or car insurance might cover items as well. For example, your health insurance is often valid in another country, and your car insurance might cover you in the event of an accident in a rental car. A warning, though: if you have Medicare you are likely not covered outside the U.S. It also makes a difference what country you are visiting. In these instances travel insurance is beneficial.
Another area to check before purchasing travel insurance is your credit cards or an auto club membership. Many credit card companies offer travel protection automatically for things such as rental cars or accidental death. These could also offer protection if an airline loses your luggage. The best advice is to check all your current policies before you purchase travel insurance to be clear of what is or is not covered. Not only do you want to be covered, but you also want to be sure you do not have duplicate coverage, which would be a waste of money.
Do Your Research
If you do decide that travel insurance is the best route, shop around and ask questions. It is usually safer and sometimes less expensive to purchase insurance from a third party source such as an established insurance carrier. This way, if the travel agent closes up shop while you are on your trip, you do not lose your coverage. Also, ask specific questions. What situations does the insurance cover? Are there deductibles? Are there restrictions? What does the insurance not cover? What happens if you need to use the insurance? What are the steps to take if you need to use the policy? Each company will have different answers. Do your research before making a decision.
Understand Your Policy
One of the most common reasons to use travel insurance is trip cancellation. If this is the case, be sure you know how it works. Some policies only cover you for unforeseen circumstances such as death, hospitalization or a legal obligation. However, other policies allow you to cancel for any reason. Eligibility criteria and additional fees might apply to either option, so consider this carefully before purchasing.
A common misconception is that you have to purchase travel insurance at the time you book. This is not the case. In fact, you can choose to purchase it days before you travel. However, be aware that additional fees might be required. Some policies require that you book within a certain time frame, and if you choose trip cancellation insurance, you want to purchase it before you get sick. Otherwise, you will be denied.
