TIPS | Why travel insurance?
There have been quite a few headlines surrounding travel lately, with low cost carriers going out of business, accidents happening abroad, devastation overseas, and travelers racking up medical bills due to an accident overseas, the need for travel insurance appears to be more apparent than ever before.
When we proposed travel insurance to a few readers and clients, we were met with hesitation. So we asked the question, “What are your thoughts surrounding Travel Insurance?” The main consensus was that people are just not educated enough on the topic, and so they believe it’s not important to purchase; thus we felt it was important that we brought some awareness to the topic. Our goal is to shed light on travel insurance, so the next time you choose to travel, you can make an informed decision about purchasing travel insurance.
What is travel insurance?
Travel insurance is designed to cover you from losses arising from sudden and unforeseeable circumstances while travelling. It is intended to cover medical expenses, trip cancellation, lost luggage, flight accident, and other losses incurred internationally or domestically. Circumstances such as the need for medical treatment in a foreign country, including the cost of hospital stays, doctors' fees, lab tests and ambulance services to name a few.
Coverage Types
There are many types that you can choose from when traveling, however there are five main that we will focus on below. They are the following:
Trip cancellation or interruption
Medical Insurance
Evacuation Coverage
Baggage and Personal Items
Let’s delve a little deeper into each one.
Trip cancellation/interruption is when something happens that prevents you from going on a planned trip, or cuts your existing trip short. In the case of an interruption, generally you will be reimbursed only for the portion of the trip you did not complete.
Terrorism threats fall under this umbrella, but some plans only pay if you are scheduled to arrive within a set number of days before the incident takes place. A cancelled trip could be due to a medical accident of a family member or an evacuation at work. Changing your mind about a trip is not covered under this option.
Medical Insurance provides coverage above and beyond your regular health provider including medical expenses. This insurance covers for medical emergencies if you are sick or injured, and is good if you are not concerned with cancellation, interruption, delays, and baggage. It is always best to check with your health insurer to find out what coverage you have when traveling. It is important to note for US residents that Medicare does not provide travel coverage.
Evacuation Insurance has two types: One that is medical evacuation and the other being non-medical evacuation. The difference between the two are that one covers the cost of moving you to a location where you can get necessary and appropriate treatment in the event of a medical emergency; while the other arranges transportation from a place of danger to a safer location during times of civil or political unrest. In some instances, this is an annual cost for evacuation insurance. This is something you will need to pay close attention to on the policy, should you choose to go this route.
And lastly, there is Baggage and Personal Items Loss which provides reimbursement for lost, stolen, or damaged baggage and other personal items. It’s usually offered for your entire trip, not just flight-related activities. If you are carrying items valued over $1,000, such as a laptop or camera, it’s best to list them on a schedule as part of your homeowners or business policy.
With this all said, it is common for your company benefits or premium credit card to offer travel insurance. But it is always best to check with your providers as to what you are covered for.
Reasons to purchase travel insurance
There are some great benefits to purchasing travel insurance. One in particular are for relatives that do not live in your country. Canadian residents whose relatives are visiting, can purchase travel insurance prior to their arrival. Whether they are elderly or young and vibrant, it can be extremely costly if an accident were to happen. For example, an emergency room visit could cost $930 cdn or an intensive care room could cost up to $6,000cdn/ per day.
Here are some other reasons to purchase travel insurance:
You miss your connecting flight
Flight is cancelled
Baggage is lost or delayed
Accident or injury
Your travel company files for bankruptcy
Passport is lost
You require emergency assistant services
With all this information above, and with so many different insurance providers, how do you find a good travel insurance provider? Here are a few tips when selecting:
Know your health. Visit your doctor and make a note of any conditions & medications you have before applying for travel insurance. That way, you can make sure the policy you purchase covers your particular situation.
Know your policy. Ask the travel insurance company or the insurance broker all the questions you can think of before purchasing your policy. For example, ask which services are covered by the policy, and how claims are paid.
Know your trip. Think about your activities and your plans on your trip. If you plan to participate in any high-risk activities such as bungee jumping, zip-lining or extreme snowboarding, make sure your travel insurance policy covers them. Insurance policies differ in terms of the activities they will cover. So whatever you do, do not assume you are covered.
Know what to look for in an insurance carrier
Smooth application & claims payment process
Easy and simple ability to file complaints or flag problems
Simple and clear documents with full disclosure of all limitations
We hope this information has given you a good sense on whether or not you should be purchasing travel insurance, or checking with your employer’s benefits or premium credit card companies. US Residents can visit Roamright to get a quote for travel insurance.
It is better to be safe and aware, than to have an unexpected unforeseen circumstance arise. Your travel professional cannot be held liable if they offered travel insurance and you denied the coverage.
Let us know if this was helpful in the comments. We would love to hear from you
Happy Traveling,
The Luxe and Lavish Travels Team