Why travel insurance can be a life saver
If you’ve traveled before, you’ve probably been suggested to purchase insurance for your trip. Chances are, if you’ve never had travel plans go wrong, you haven’t been inclined to buy it. Only 1 in 6 individuals have ever bought travel insurance, according to ValuePenguin, a consumer spending decisions website.
It can be overwhelming to know who has the best travel insurance plans and what exactly you want and need in insurance coverage, especially regarding international travel. When you’re investing a lot of time and money in your travel plans, it’s crucial to account for the unexpected happening, whether that’s an illness, a family emergency, an accident, or even a pandemic. If we learned anything from 2020, it's that the world is capable of shutting down in times of need.
Where do you start? The first step is considering coverage. Next, you’ll need to identify what is most important and useful to your travel party and its upcoming trip.
Below are 12 questions that you should weigh when deciding on an insurance company:
Is there a cancel for any reason (CFAR) option available? If offered, what percentage of the trip does it cover?
This coverage is helpful for any circumstance outside the base coverage offered in your chosen plan. Note: If you are deciding on travel insurance, try to couple purchasing your policy with your trip, as there may be time stipulations that negate coverage if you wait too long to purchase, such as CFAR.
Do they offer COVID-19 coverage?
Your airline may also offer COVID-19 coverage. Compare the verbiage to ensure that if you contract COVID-19 right before the trip, you will be covered.
Is trip interruption coverage included in either the COVID-19 coverage or travel medical insurance?
This coverage can reimburse you for the non-refundable parts of your trip that you have to miss if ending it early. It can also pay for a one-way plane ticket home under specific emergencies.
How much per person is the travel medical insurance?
Travel medical insurance pays for ambulance service, X-rays, lab work, medicine, doctor and hospital bills, and other medical expenses during your trip. This is essential for travelers abroad, where your U.S. health plan may have limited global coverage or no coverage.
Does the plan cover pre-existing conditions?
How much is the baggage loss reimbursement stipend, and when does it kick in?
Some companies require a bag to be deemed “lost” for several hours before the stipend can be redeemed, commonly between 12 - 48 hours.
Does it cover all modes of transportation that could occur during my trip, including rentals and ride-shares?
Write out all the different modes of transportation that you could possibly take on your trip, and make sure that each one is included in your plan.
What natural disaster coverage is included, and when does it kick in?
What trip delay coverage does your airfare offer when purchasing a ticket, and what is missing?
What does my credit card coverage cover, and what is missing that travel insurance could provide in its stead?
What pricing options are available for singles, couples, and families with minors?
How much did you spend on non-refundable purchases? That is the amount of trip cancelation coverage you should buy, as any refundable deposits cannot be claimed.
Forbes Advisor has evaluated over 53 travel insurance companies and created a guide to help find the answers to the above questions as you consider your travel insurance purchase. Of course, having anecdotal evidence can be reassuring to have in consideration, too. If you’re interested in learning more about our personal experiences with travel insurance, don’t be shy and reach out