Readers of David’s Been Here know that I recommend travel insurance for every trip. Travel insurance is an important financial tool for travelers because it covers various risks relating to travel. The three basic types of travel insurance policies include trip cancellation or interruption cover, health or medical evacuation, and baggage or luggage protection.
Some comprehensive travel insurance policies also protect the traveler when he or she hires a car or suffers injury or accidental death. Travel insurance policies can be purchased in various formats including single trip or per annum travel. Travel insurance policies may be underwritten for a single traveler or for an entire family. Southern Cross Travel Insurance is an example of a travel insurer that offers cost-efficient single trip coverage.
Single Premium or Annual Cover
Frequent travelers may want to purchase annual travel insurance that covers medical emergencies, evacuations, and baggage damage and loss. Purchasing an annual policy is the best way to always have in-force travel insurance. Just make sure to read the fine print on your policy. Not all annual policies offer trip cancellation or interruption cover.
Trip Cancellation or Interruption
This type of travel cover can help the policyholder to recover expenses or deposits associated with a planned trip. The policyholder is covered against a trip cancelled due to illness, death or the air carrier’s insolvency.
For instance, the traveler may have already left on another airline and has plans to connect with a destination-specific carrier. Travel insurance protects against trip interruption and reimburses nonrefundable expenses and costs. The traveler is likely to spend more money to book new airfare, perhaps at higher costs than the original ticket, as well as meals, hotels, transportation, and phone calls.
Many health insurers don’t provide cover outside of the traveler’s residential country. A travel insurance policy purchases coverage for medical emergencies that can happen on holiday. Routine medical expenses, such as physicals, or costs associated with contact lenses or eyeglasses aren’t covered. If the policyholder gets sick in an area without adequate health care providers or hospitals, he or she may receive transport to a hospital.
Baggage or Luggage
Travelers insurance can also protect the policyholder’s luggage if it is lost, damaged, or stolen during the journey. It’s important to purchase additional insurance coverage or adding a rider to an existing homeowner policy if the traveler carries expensive items like jewelry or electronics.
Travel insurance can also cover the cost of a car hire, emergency/urgent dental care, accidental death and/or dismemberment, accidental death during an airline flight, or costs associated with the repatriation of a deceased policyholder. Travelers insurance is a good buy so don’t leave home without it!