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Travel Insurance Explained
Travel insurance policies aren’t as complicated to understand as life, health, or automotive insurance policies are, but they are still complex enough that you might appreciate having the important details broken down into checklist format for you.
What Coverage Can You Expect from a Travel Insurance Policy?
Usually, a travel insurance policy will include coverage for the following:
Should you encounter an emergency before you have opportunity to use your ticket, travel insurance policies pay for the total cost of the tickets, deposits, and the like—even if you purchased them from non-refundable sources.
Your travel insurance will pay for the total value of any lost or damaged baggage, as well as—usually—any replacement items you have to purchase while traveling (without luggage, now) to replace the items lost or damaged.
If your travel provider defaults, you will get a full refund on your ticket(s). If, for example, a travel agent or packager or airline files for bankruptcy while you are in possession of travel tickets, the insurance policy will cover the loss.
If you are forced or caused to miss a flight, if you are held up by traffic, illness, or get bumped by the airline, a travel insurance policy will pay for any extra expenses you might incur (if the airline does not). So your hotel, taxi, and other travel costs will be paid.
If you encounter an emergency for dental work, doctor appointments, or hospital stays, and/or if you need to use emergency transportation—ambulance, medivac copter, etc.-- your travel insurance policy will pay for the treatments until you return home. Once you’re home, your primary insurance policy should reimburse the travel insurance company. In addition, your travel insurance will often cover the cost of your early return flight.
In some cases (and with some airlines—so check the policy), if you are traveling and find you are unable to stay in a country affected by civil rioting, attacks, bombings, etc., for example, you may be able to collect a refund for your cancellation or emergent return home. While many insurance policies absolutely refuse to cover any kind of terrorism, other travel insurance covers cancellations in the event of an incident or a government-issued warning.
When You Purchase Travel Insurance
Be sure to pre-read (and then re-read) the policy regulations.
Consider using your credit card if it covers losses. (In the U.S., there is the Fair Retail Credit Billing Act which protects you by insisting airlines, cruise companies, and packagers refund any services/products you lose out on.)
Read the regulations and policies again, just to be sure.
Know that with the chances of interruptions, delays, and losses increasing as more and more people travel and more challenges and risks arise, the insurance you purchase (which is quite reasonable, usually) is worth your convenience, peace of mind, and protection.
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