Travel Insurance: Everything you Need to Know

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Peace of Mind – Traveling the World with Travel Insurance

As smart travelers, we know that things can go wrong at any time during our trip. Flights can be canceled, accidents can occur, theft and stolen equipment, etc. The thought of all of this can put a dark cloud over the days when you’re supposed to be enjoying yourself the most. This is the reason that thousands and thousands of travelers from all over the world opt to get travel insurance. 

Travel Insurance is one of those things that it’s better to have it, and not need it than to need it and not have it. But the question is what is travel insurance? Do I need travel insurance? How do I know what travel insurance to buy? Why pay for travel insurance?

Photo by Anete Lūsiņa on Unsplash

You have probably heard of travel insurance when booking a flight or a cruise. These are insurances directly from a company that only covers their specific services. However, did you know that there are companies entirely dedicated to covering every aspect of your travels? Travel Insurance is something many travelers go without and they seem to get by just fine. So, why should you get it?

If travel insurance is the question, then the peace of mind is the answer. The thought of adding extra costs to your already expensive itinerary is what keeps travelers from getting travel insurance 9 times out of 10. However, the headaches that come when things are just not going your way can be lessened by knowing that someone has your back. In this case, your travel insurance provider. 

Photo by Annie Spratt on Unsplash

What is travel insurance?

To put it simply, travel insurance providers make their money by counting on everything going right with your vacation. It is intended to cover almost every aspect of your travel so you can focus on making the most out of your time abroad.

So… what’s covered?

The number of claims covered with travel insurance is mind-boggling. You can count on being covered for almost every stress-related thing you can think of. Emergencies, trip cancellations, baggage loss or delay, and accidental deaths can all be included. Nevertheless, just because something is covered by one insurance, does not mean that other insurances will cover it also. Also, just like home and car insurance, some insurance companies charge a premium for optimal coverage, so that lower price you see may not include your claim. Always make sure to read through the list of what’s covered before choosing a provider. Some of the most commonly covered claims are: 

Emergency Accident and Sickness Medical Expense

Accidents can happen at any time regardless of whether you’re at home or away. Medical treatment for accidents can be costly, especially when you’re in a country where your medical insurance is not valid. Most travel insurances recognize that this is the number one reason most people even begin to search for protection, and for this reason, many of them will offer a package you cannot resist. 

Some smart travelers can get adventurous with their food, if not, what would be the point of traveling? However, it is difficult for many countries to regulate restaurants and food vendors, so that fishy-smelling burger you had can cost you a night at the local hospital, which will put a dent not only in your vacation but also your wallet.

Trip Cancellation

To get the best deals, smart travelers always opt to book months in advance. However, no one is able to predict the future, and every year many people find themselves in a situation where they have to cancel all their travel plans without getting any of their hard-earned cash back. Many travel insurance providers cover the most frequent reasons why travelers find themselves in these situations. Some of these are sickness, accidental injury, or death of you, a family member or traveling companion; inclement weather, or an unforeseen natural disaster at home or at your destination. 

Baggage and Personal Effects

For many travelers, vacationing is more than just a hobby, it’s a passion. These travelers will purchase costly equipment which they’ll need to fully capture the beauty of the places and cultures they visit. Most companies offer the peace of mind that comes with knowing that your camera, computer, tablet, or even drone, are fully covered in case of theft or damage caused during your travels. Same goes for your baggage. In the unfortunate case that your luggage gets lost or stolen, many policies will have your back and cover the expenses to replace the items.

Baggage Delay

Have you ever had the misfortune of waiting by the luggage carousel…and waiting…and waiting? Everyone is gone and you’re still waiting for your bag? You’re not alone. Baggage delay is very common, and sometimes they’ll arrive the same day, but sometimes it will take longer. If you find yourself in a position where you’ll need to purchase extra items of clothing while waiting for your bags, then check with your travel insurance, there’s a chance that you can get reimbursed for the money spent. 

Accidental Death/ Dismemberment

Here’s the one I hope no one ever needs travel insurance for. If during your trip, you, or a covered companion suffer a travel-related illness that causes immediate death (or prolonged to even after you return home), you or your family may be eligible to receive compensation. The same for dismemberment, if a travel-related event results in loss of one of your limbs, then you may qualify for payment.

Photo by Joshua Earle on Unsplash

What does it cost?

Like with any other type of insurance, the cost depends on many factors. These include the destination, the number of days, how you’re getting there, and what you’re planning on doing there. This information is essential since certain countries are less safe than others, which means there’s a higher chance of something going wrong at a specific destination.  

During my research, I used a quote from a future trip to Paris for five days using World Nomads, which is underwritten by Nationwide Insurance. After filling out some basic information, including country of residence and destination, I was quoted for $98.90 ($61.28 for their basic plan), a pretty reasonable price for having a reassurance that you and your investment is protected. Quotes from other insurances ranged from as little as $59 to the most expensive, $328.

Top Travel Insurance Companies

If you don’t know where to begin your travel insurance search, take a look at Forbes’ Top Travel Insurance Companies of 2019.

  1. Allianz Global Assistance
  2. Amex Assurance
  3. Generali Global Assistance
  4. Seven Corners
  5. Travelex
  6. Travel Guard

However, when researching insurance, make sure that the company you ultimately decide on works for you, not for someone else that came up with a list. Be diligent and investigate all aspects of it, and again, be hyper-aware of the difference between the base price and the premiums to prevent unpleasant surprises. 

Cover Photo by Simon Migaj on Unsplash

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