Whether traveling domestically or abroad, there are a wealth of situations a traveler could be thrown into without the proper understanding of how to react. Travel insurance is designed to mitigate some of the risks associated with traveling by offering extensive coverage for many of these situations. The following will take an in-depth look at what travel insurance really means, why it’s so important and the types of coverage commonly available with travel insurance.
What Does Travel Insurance Mean?
In essence, travel insurance is designed to provide a myriad of different coverages for the user during their time traveling, whether in their own country or internationally. The coverage types typically provided with travel insurance are meant to reduce the risks associated with traveling and the unexpected events that can happen. The cost of the insurance depends on how extensive the coverage is, as well as the weather that has been forecast for the trip and if the destination is considered to be a danger zone.
Why Travel Insurance is Important
While many people believe that the issues that could arise when traveling can be avoided simply through smart preparation, such as packing light in order to avoid having to pay a lot of money to replace lost belongings, there are a wide range of horrible situations that can present themselves when traveling that no one can prepare for beforehand. An emergency or evacuation might suddenly be necessary. Without insurance, this can cost a person up to $100,000. Many travelers wouldn’t be able to pay this amount without insurance, which would only serve to worsen their situation.
Travel insurance avoids all of this by providing the traveler with coverage that extends to all of these rare emergencies. While it’s understandable that most people believe this would never happen to them, the one time that it does can be disastrous to a persons finances. It’s for this reason alone that travel insurance is more than worth it. No one wants to lose their money because of an emergency that requires medical attention or due to a need to cancel the trip before it takes place, which is why travel insurance is so important.
Types of Coverage Available With Travel Insurance
There are two primary types of coverage available with travel insurance, as well as a few smaller types of coverage that may be available depending on the policy that is purchased. The two largest areas of coverage include medical emergencies abroad and cancelled trips. While healthcare coverage in the U.S. covers all health related needs while in the country, most plans do not provide coverage when outside of the U.S. Travel insurance will cover all expenses related to accidents, as well as emergency dental or medical care, which is essential in avoiding a costly healthcare bill. Emergency evacuations are sometimes necessary in extreme medical cases where emergency care in necessary within the U.S. Without coverage, the flight back home and ambulance ride to the hospital can easily cost more than $50,000. Travel insurance will cover all of this and transport the patient to their hospital of choice.
As for trip cancellations, there are times when a person will need to cancel the trip they have booked, which could mean cancelling tour packages, airfare, hotel rooms and other expenses. Most of these are non-refundable, which is a huge investment if something goes wrong. Travel insurance will provide coverage for many instances where cancelling a trip is necessary, which includes everything from sickness or death of a family member to being laid off from work or called for jury duty. In these situations, all expenses will be returned to the person that had to cancel by the insurance supplier. As for additional coverage types available with some policies, this can involve everything from delayed and lost bags to worldwide phone assistance on a 24/7 basis.