You may wonder when it’s worth buying a travel insurance, be it your life’s holidays or a trip around the country to attend a cousin’s wedding. Depending on what you can afford to lose, it’s probably the best answer. Understanding what travel insurance is and what it covers will help you make the best decision.

What is the definition of travel insurance?

Travel insurance offers protection against risks and financial losses while traveling. The risks range from minor inconveniences such as lost air connections or delayed luggage to more serious problems such as injuries or serious illnesses.

What is included in travel insurance?

Travel insurance can cover a wide range of possible damages and losses, depending on the coverage you choose:

illness or injury

Travel insurance can help you avoid medical expenses abroad that your regular health insurance does not cover. Most insurance plans do not provide full coverage in other countries, and some health plans, including Medicare, do not even provide coverage. Travel insurance is an additional form of daily health insurance and can help to compensate for medical expenses if you get sick or get injured before or during your holidays.

Baggage transfer

Travel insurance can cover expenses for theft or loss of luggage. This is useful in the event that an airline loses its luggage, as it can be difficult to convince them to pay for the loss. The U.S. Department of Transportation (DOT) requires airlines to compensate customers with up to $3,300 for lost luggage. Abroad, that amount cannot exceed $1,750. However, in order to obtain these maximum amounts, passengers must present documents verifying the value and content of lost luggage. Some airlines also require the complaint to be filed within the next 21 days.

To make things worse, the DOT does not specify when a baggage is officially lost (en lugar de «demorado»). A baggage is considered «lost» in foreign countries after 21 days. The DOT only requires the airline to provide the victims with the money they need to buy basic items such as clothing, medicines and personal hygiene for delayed luggage.

Early reservations

Travel insurance can help with expenses arising as a result of travel cancellations. In case of cancellation, most resorts and cruises will not give you a full refund. Most resorts will charge a cancellation fee if you cancel two weeks or more before the trip; many cruises will only give you 25% of the refund or a partial credit on another cruise. Most companies will not refund you if you cancel within two weeks of the trip. It is possible that the circumstances are unforeseen, and it is better to make sure for the chance.

Additional credit card coverage

Some credit cards offer limited coverage for cancellations and interruptions, with annual limits and restrictions. However, very few credit cards cover the most expensive expenses of a trip, such as medical care or emergency evacuations, which only travel insurance can cover.

what might not be covered by travel insurance

Although there are many reasons to buy travel insurance, it is important to keep in mind that travel insurance may not cover certain things. If you have a pre-existing condition, look for a plan to give you permission. Find out what coverage a policy offers if you want to cancel it due to problems in the area if you are travelling to a region where there are political riots. Travel insurance policies cover some cases in which the tour operator is unable to meet its obligations due to financial problems. Before booking your trip, research how these topics are handled.

What is the cost of a travel insurance?

The age of the traveller and the price of the trip determine the cost of the travel insurance. Jonathan Haraty, owner of a travel agency in Massachusetts, says a 35-year-old could expect a travel policy to raise the cost of the trip from 3% to 5%, while a 60 year-old would pay around 10%. It can be a very low price to book a honeymoon or the best trip of your life.

What kind of travel insurance coverage do you need?

Before applying for travel insurance, consider the reasons why you might refuse it. Will your holiday be significantly affected by a delay in the trip due to the weather? Is it possible for the school year to be extended or will you have to travel to work? Is there a war conflict in the nation you plan to visit? Are you concerned about the possibility that the CDCs will send a travel warning related to your holiday destination?

All these are valid reasons for cancelling a trip or applying for insurance coverage. However, not all travel insurance solutions address these problems.

If you wish to cancel this coverage for any reason when purchasing it, go ahead. The insurance company usually doesn’t need a reason. You only need to cancel within the specified time frame, usually between 48 and 72 hours before departure.

You will accept a lower refund level instead of convenience. If you have cancellation insurance for any reason, you can recover approximately seventy percent of the non-refundable prepaid costs of your trip without having to explain why. You can buy it as an additional clause in a full policy or as an independent policy at times.

Full travel insurance

When thinking of travel insurance, this is the typical policy people think of. The full policy usually covers delays, cancellations due to illness or death, lost luggage and some emergency medical costs. To know exactly what it covers, just read the small letter.

How to change your travel insurance coverage

You can get a full refund (per at least a small administrative charge) within a specific period if, shortly after purchasing the policy, you decide that it does not fit your needs. This gives you time to read the entire coverage and make sure you have what you are looking for. This period usually ranges from 10 to 15 days. If feasible, it is recommended to know carefully what the policy covers and the procedures for filing claims in advance, if necessary.

Take care of insurance when planning a expensive trip. Some policies require you to purchase travel insurance within a certain period of time after making the initial payment for your trip, such as between 10 and 30 days. You can buy Nationwide travel insurance up to the day before departure. Of course, it is recommended to buy travel insurance well before your trip so that you can plan your trip effectively. The trip should be exciting. If you insure your trip, you can forget about financial worries even though cancellation and other problems can cause stress.