When planning explorations domestically or around the globe, the last thing most travelers want to worry about are possible travel hiccups.
From minor annoyances like lost luggage to serious problems such as a medical emergency or catastrophic weather event, travel insurance can help relieve stress for frequent travelers and protect the investment on a once-in-a-lifetime trip. While looking ahead at travel plans, be sure to consider what the right travel insurance policy is for which situation, and when the right time is to purchase coverage.
Travel insurance can come in many different forms. The two most common are traditional per-trip coverage and annual policies that cover every trip for a year.
Policies also have varying coverage limits: Some may not handle lost luggage, medical evacuation or expenses from delayed or canceled flights.
While each policy is different, a per-trip policy usually covers the basics for an individual trip. Typical coverages include trip cancellation, major medical emergency and lost or stolen items. Traditional travel insurance products usually only cover critical care situations limited to an emergency need or catastrophic events.
An annual travel insurance policy is typically much more comprehensive and is great for frequent business and adventure travelers. It might be the best fit if the traveler is planning more than two trips for the calendar year. Also, as most annual policies are more comprehensive than basic per-trip coverage, travelers planning to go abroad to developing countries may want to choose this option to ensure access to Western medical care in the event of an emergency.
A good rule of thumb is that infrequent or sporadic travelers should consider per-trip insurance and frequent travelers or families who travel internationally should consider an annual policy; however, there are many other factors to think about.
Key points to consider before purchasing a policy:
• Decide if a per-trip policy or an annual policy is right for you, then research multiple carriers before committing. Consider not just the cost of the insurance, but which policy will give you the most peace of mind.
• Does your trip policy meet your limits? Often, frequent year-round travelers need an enhanced product with higher limits for both trip interruptions and trip cancellations. For example, if your luggage is lost after you’ve made expensive purchases abroad, a standard policy may not fully cover your loss.
• Is there a toll-free number to access all manner of services?
• Is terrorism coverage included? Terrorism coverage typically reimburses for most travel delays, trip interruptions or trip cancellations caused by terrorist attack. Similar coverage may apply in the event of a natural disaster.
• Does coverage include all family members and/or domestic partner in the same household? This is especially important for parents with children traveling or studying abroad.
Many pitfalls can potentially arise while traveling. However, by doing the appropriate research and carefully selecting the right policy, hassles and drama can be easily mitigated throughout any travel adventures.