Deciding whether to purchase travel insurance can be challenging, whether you’re planning a dream vacation or travelling across the country for a family event. The key consideration is what you can afford to lose if something goes wrong. Understanding travel insurance and its coverage can help you make an informed decision.

Understanding Travel Insurance

Travel insurance provides coverage to protect against various risks and financial losses that may occur during travel. These can range from minor inconveniences, like missed connections and delayed luggage, to more serious issues, such as injuries or major illnesses.

Coverage Offered by Travel Insurance

Travel insurance can cover a wide range of potential damages and losses depending on the policy:

1. Injury or Sickness: Travel insurance can help cover medical expenses abroad, which are often not covered by regular health insurance plans, including Medicare. This coverage supplements your health insurance, protecting you from unexpected medical costs during your trip.
2. Lost Luggage: If your luggage is lost or stolen, travel insurance can help cover the expenses. Airlines are required to compensate for lost baggage, but this process can be complicated and limited. Travel insurance provides an additional layer of security.
3. Last-Minute Cancellations: Travel insurance can help cover the costs if you need to cancel your trip. Most travel providers offer limited refunds, especially if the cancellation is close to the departure date. Insurance ensures you are covered for unforeseen circumstances.
4. Beyond Credit Card Coverage: While some credit cards offer travel insurance, the coverage is often limited. Travel insurance provides more comprehensive protection, including coverage for medical expenses and emergency evacuations, which credit cards typically do not cover.

What Travel Insurance Might Not Cover

Not all scenarios are covered by travel insurance. For instance, preexisting conditions may not be covered unless you have a policy that includes a waiver. Travel insurance also might not cover cancellations due to political unrest or tour operator defaults. It’s crucial to understand the specific terms and exclusions of your policy.

Cost of Travel Insurance

The cost of travel insurance varies based on the trip’s price and the traveller’s age. A younger traveller might pay around 3-5% of the trip cost for insurance, while an older traveller might pay about 10%. Despite the cost, travel insurance can be a small price to pay for protecting your investment in a significant trip.

Types of Travel Insurance Coverage

When considering travel insurance, think about the potential reasons you might cancel your trip. Common concerns include weather delays, extended school years, work commitments, or political unrest. Different types of coverage are available to address these concerns:

1. Cancel for Any Reason Insurance: This coverage allows you to cancel your trip for any reason and receive a percentage of your nonrefundable trip costs back, typically around 70%. This option provides flexibility and peace of mind.
2. Comprehensive Travel Insurance: A comprehensive policy covers delays, cancellations due to sickness or death, lost luggage, and some emergency medical costs. Always read the policy details to understand exactly what is covered.

Changing Your Travel Insurance Coverage

If you find that the travel insurance policy you purchased does not meet your needs, you can usually get a full refund (minus a small administrative fee) within a specified period, typically 10 to 15 days. This allows you to thoroughly review the policy and ensure it provides the coverage you need.

Final Thoughts

When booking a significant trip, it’s wise to investigate travel insurance simultaneously. Some policies require you to purchase insurance within a certain timeframe after booking your trip.

Ideally, buy travel insurance well in advance to ensure comprehensive coverage. By securing travel insurance, you can focus on enjoying your trip without worrying about potential financial setbacks.