Suppose you have traveled in the past and something unexpected occurred. It could be something as simple as an illness on said date to worse experiences, like natural disasters in said area, or even losing a job.
Regardless of the circumstances, you had to cancel your flight, rental car, hotel arrangements, or something else, and unfortunately, you cannot get a refund on some of those expenses, costing you what seems like a fortune in the long run.
Now, because of your circumstances (or simply wanting to ensure you are protected), you are looking into what travel insurance is and what kind of benefits it can provide for you.
Travel insurance is a financial product that protects you from unexpected losses and events during a trip, such as trip delays, cancellations, unforeseen illnesses, or lost luggage.
In this article, we will explore what travel insurance covers and what it does not. Afterward, we will discuss some of our favorite go-to travel insurance companies that are highly trusted. Overall, we encourage you to continue reading for all the information you need about the subject.
What Does Traveling Insurance Cover?
When adventuring, everything sounds extremely exciting, especially when exploring in areas you have never been before! Regardless of whether you are trekking up the mountaintops, diving deep into the ocean, or navigating through rugged trails, there are always risks that can come with it, especially if you frequently fly from place to place. In this specific case, ensuring that everything is in order legally before proceeding with the fun stuff would be a wise idea.
Having travel insurance helps protect your plans and gives you peace of mind. Below, we have a list of what travel insurance covers.
1. Lost Luggage
The first benefit of travel insurance is that if you lose your luggage, it will reimburse you for the items lost. On average, the company will provide a limit of between $500 and $ 3,000 per person. However, if you have any valuable items, the company might reimburse you $50 to $500 per item.
Although these prices are not fully guaranteed, they entirely depend on the plan you choose, the value of the lost items, and whether the items fall under any exclusions or coverage limits outlined in the policy. It is also essential to research what each policy explicitly covers before purchasing travel insurance.
2. Sickness or Injury
Many flights and travel companies have non-refundable tickets that you pay for. However, sicknesses and injuries still happen unexpectedly. In that case, if you happen to fall sick the day before or day of said trip, then that non-refundable ticket easily becomes refundable. This would come in handy when you don’t have endless amounts of money to buy a new ticket for another day.
Another thing to consider is that if you get injured or sick during the trip, the medical insurance you have may not be valid in the state you are visiting. For example, if you have state insurance, such as Medicare or Medicaid, it may not cover the costs if you need to go to the hospital. In that case, you will wind up with a much larger bill than you can afford.
3. Coverage Beyond Your Credit Card
Suppose you reached your limit on your credit card. In that case, travel insurance provides more coverage than your credit card, which allows you to make purchases over your limit for a specific fee. In doing so, it also prevents purchases from being declined.
4. Last-Minute Cancelations
As we mentioned earlier, unexpected things happen frequently. As a result, you may need to cancel your plans at the last minute. However, travel companies will not reimburse you the way you wish they would. Another thing to consider is that some companies might allow you to change the date you fly out.
However, having travel insurance will enable you to cancel your trip entirely without incurring any financial loss. It is still important to note that this may depend on the type of trip and the reason for cancellation, so be sure to read the fine print before agreeing to anything.
What Things Does Travel Insurance Not Cover?
Aside from all the wonderful things travel insurance covers, it is essential to understand that it does not cover every minor incident that may occur during your trip. Let us review what some of these things are:
1. Routine Dental and Medical Care
Suppose you regularly visit the dentist or doctor but miss an appointment at your usual office due to travel, or want to squeeze in an appointment wherever you are. In that case, it is essential to note that travel insurance will not cover these visits. The insurance in terms of medical treatment is used for emergencies.
2. Foreseeable Events
Suppose you retrieved your insurance when a foreseeable or known event occurs. For example, if you wish to travel to Florida but a hurricane is forming in the middle of the Atlantic Ocean, and you still plan to travel there during that time. In that case, the insurance will not cover any losses. Other examples might include known civil unrest, war, riots, or epidemics.
3. Childbirth or Normal Pregnancy
Even pregnant women love to travel! However, if you happen to go to the hospital and give birth, then most travel insurance agencies will not cover this. However, some places might, so it is wise to look around and find companies that cover this option if you need it.
4. Risky or Illegal Activities
The saying, “do so at your own risk,” is an understatement when it comes to insurance policies. If you are a risk-taker and enjoy traveling, it would be wise to note that most insurance companies do not cover these activities. Some activities include bungee jumping, rock climbing, scuba diving, or similar pursuits. Alternatively, you should not expect any travel insurance agency to cover illegal activities.
Can You Get Travel Insurance While Driving?
We have mentioned traveling on planes extensively, but you may want to travel from one state to another that is several hours (or a couple of days) away. In that case, we highly recommend getting travel insurance to ensure you are taking extra precautions while traveling with you and your friends or family.
Travel insurance can cover a multitude of things, like the following:
- Rental cars (damage, theft, etc.)
- Cancellation fees and interruptions (hotels and whatnot)
- Unexpected medical coverage
- Accidental death and dismemberment
- Emergency assistance
- Valuables and baggage
What Are the Different Types of Travel Insurance?
There are many different types of travel insurance categories available. Sometimes, it might be as simple as wanting to get a refund for a cancellation, but you may also need more comprehensive coverage. Here are some different options you might want to consider looking into:
- Travel medical and major medical: Travel medical will provide short-term coverage for you in the event of illness or injury while traveling.
- Baggage loss: As mentioned previously, travel insurance companies will reimburse you for any items that you might have lost.
- Cancel for Any Reason (CFAR) policies: Some travel insurance policies require a specific reason for trip cancellations, whereas CFAR policies do not. As a result, regardless of the situation, insurance companies will typically reimburse you for most of your travel expenses.
- Trip cancellation: Aside from CFAR, if your trip is cancelled for any reason specified in your policy, you will also receive reimbursement.
- Emergency medical evacuation: Suppose you are traveling to a rural area that lacks access to a wide range of medical supplies. In that case, if an emergency happens or someone passes away, then this comes in handy to help transport the person back.
- Accidental death and dismemberment: In case something horrendous happens, having this provides coverage to the beneficiaries if you die in an accident on the trip. This will pay a sum to you if you lose a limb, hand, foot, eyesight, etc., from an accident as well.
How Much Does It Cost to Get Travel Insurance?
Travel insurance costs 4% to 10% of your total trip cost. However, basic plans typically cost around $60, and more comprehensive plans cost roughly $ 100 or more. Some key factors to consider are your age, the duration of your trip, the destination you will visit, and any other specific details that an insurance company may request.
What Are the Best Travel Insurance Companies Out There?
There are many wonderful travel insurance companies in the world, but we have researched to ensure you are getting the best. Here are some of our favorites to look into:
1. IMG
IMG insurance allows you to pick and choose what suits you best. Although it may be on the pricier end, it covers trips for up to 180 days and offers 100% coverage for trip cancellation and 125% coverage for trip interruption. We highly recommend them for those who plan to travel long-term.
2. Travelex
Although Travelex does not offer many customizable options, it is one of the most affordable travel insurance companies available. Additionally, it focuses more on protecting its customers than personalizing the experience.
3. Berkshire Hathaway Travel Protection
For those who want customizable and comprehensive coverage at a competitive cost, Berkshire Hathaway Travel Protection is the right choice for you. They even offer specialty plans for adventure activities, flights, cruises, road trips, and luxury travel.
Can You Change Travel Insurance Companies?
You can always change travel insurance companies, but doing so will likely result in a cancellation fee and loss of coverage from your current insurer. Before changing companies, contact the current company you have chosen to see if they have any other available options that better suit your situation.
Is It Worth Getting Travel Insurance?
If you consistently travel from place to place, then it is highly worthwhile to get travel insurance. Another thing to consider is that if you cannot afford to miss out on the money you might lose due to unexpected occurrences, then paying a little bit more for travel insurance would be your best bet.
Lastly, we hope this article has helped you understand what travel insurance is. If you have any further questions about traveling and adventuring, we recommend consulting our other articles for additional information.