Travel insurance policies can be complicated, which means it’s easy to choose the wrong one when you buy travel insurance online. To ensure you end up with the best travel insurance policy, whether it’s trip cancellation or travel medical insurance, check out this guide that outlines everything you need to know about travel insurance policies. 7 Types of Travel Insurance Policies You Need to Know About
It lists the most common types of travel insurance policies, as well as which one you should choose depending on your situation and what kind of traveler you are. Don’t go on vacation without reading this!
Never Travel Abroad Without Insurance
Reasons for Family Travel Insurance
1) Life Insurance
While there’s no such thing as life insurance for travelers, there are plenty of policies that will cover you if you die while traveling.
It’s important to know that travel insurance is different from life insurance—the former will cover your final expenses, transportation home, medical bills and other costs associated with a death or injury; life insurance, on the other hand, covers funeral expenses and your loved ones should anything happen to you. It can also be used as a way to create a legacy.
For more information on different types of travel insurance policies, please refer below
2) Trip Interruption
If you’re forced to cancel your trip due to a covered reason—let’s say a major storm comes through and you have no choice but to cut short your vacation—trip interruption insurance can help make sure you don’t lose money.
And if it turns out your trip is interrupted, but not canceled, trip interruption coverage can help cover additional expenses like food and lodging. (Coverage will vary by policy.) If you cancel because of sickness or injury while traveling overseas, trip cancellation coverage can help reimburse any nonrefundable expenses, like airline tickets or hotel reservations.
It may also provide compensation for things that are harder to quantify in dollars and cents, like losing business opportunities if you have to cancel a meeting back home.
3) Cancellation for Medical Reasons
Some policies, like those offered by World Nomads, will cover you if you have a medical condition that makes it unsafe for you to travel.
This type of insurance is usually contingent on having a note from your doctor. If you don’t have a note from your doctor, and have not bought insurance with specific coverage for medical conditions, then you are likely going to be out-of-pocket for any trip expenses when (not if) illness strikes.
If that’s worrisome—and it should be—then make sure your insurer has sufficient coverage for medical conditions like heart trouble or diabetes.
Generally speaking, $100K in coverage should get most people through even long trips around Asia or Africa without incident.
4) Baggage Delay and Personal Items Loss
If your luggage is delayed, you have a couple options. The first option is to purchase travel insurance that covers delayed baggage. This will reimburse you for any essentials that might be lost in your bag, such as toiletries or clothing.
If your bag is totally lost, some insurance policies will provide a cash reimbursement in its place. Alternatively, if your bags are delayed or damaged by an airline during a trip and you’re not traveling with valuables (jewelry, electronics), make sure to file a claim with your airline; they will often reimburse at least part of what was damaged or stolen (within limits).
5) Collision Damage Waiver
When you’re renting a car, collision damage waiver (CDW) covers your rental for any physical damage or theft. In many cases, it’s optional and comes at an additional cost.
You can decline CDW, which means you’ll be responsible for any damages that occur to your rental; however, it may come with a deductible that will give you peace of mind in case something does happen. (Many credit cards provide secondary coverage in case your personal insurance doesn’t.)
6) Medical Insurance
Medical insurance is important for both trips and everyday life. If you’re traveling outside your home country, you need medical insurance that includes travel.
Some medical policies require you to pay extra for coverage abroad—one company might charge $25 per trip, while another might charge $10 per day. It’s worth it to do some research and figure out what kind of coverage you want—and what kind is going to fit into your budget.
That way, if something happens while you’re on vacation, there won’t be any surprises when it comes time to pay a bill.
7) Emergency Evacuation
This is perhaps your most important coverage. It pays for transportation home in case you’re hospitalized for an injury or become ill during your trip, or if you need to be evacuated after a natural disaster or political unrest.
Before buying insurance, find out what it covers and how much it would cost to get home on your own; in many cases, it’s cheaper (or even free) to buy a last-minute flight than it is to pay thousands of dollars for emergency evacuation.