In today's increasingly uncertain world, you never know when you may need to cancel a vacation. Every destination and travel situation comes with its own set of risks. Weighing these risks and the cost that a canceled trip may bring to you may lead you to make the decision to purchase a travel insurance policy. The last thing that you want is to sink a significant amount of money into a trip only to lose it on non-refundable expenses because of an unforeseen circumstance. By examining the benefits of having this peace of mind in hand, it is clear to see why people choose to add a travel insurance policy to the total cost of the trip. Here is more information about travel insurance and why you should consider it for your next adventure.
What Does Travel Insurance Cover?
Travel insurance covers a wide array of unexpected expenses. A typical policy will provide coverage for travel headaches such as lost luggage, medical emergencies, and various travel delays and their repercussions. One of the primary benefits of a third-party travel insurance policy is the medical care coverage that it provides. This medical care coverage may be particularly important if you are traveling internationally where your normal health insurance may not apply. Under the medical care coverage, you will also find medical evacuation policies that will pay for your travel back to your home or the necessary hospital for treatment. Another key benefit of having a travel insurance policy is that it may cover unexpected changes to your itinerary for a variety of reasons. For example, if your trip is interrupted because of an emergency, the policy will cover the money that you have already sunk into the trip.
Benefits of Travel Insurance
Some credit cards offer a certain level of built-in travel insurance. If you use a premium card, be sure to check the benefits to see what you qualify for. You may only need to purchase a supplemental policy to complement these existing benefits. Most of these credit card policies also only offer coverage up to a certain dollar amount, making it important that you purchase an additional policy if your trip is expensive. The primary reason that people purchase a travel insurance policy is to protect against trip cancellation that occurs prior to leaving the home. Many travel vendors lock you into fees that are non-refundable once a certain date has passed. An insurance policy will protect the traveler against the costs incurred as a result of cancellation. The most common reasons that a trip is canceled prior to it even starting include family emergencies, illness, severe weather, or a terrorist event at the destination that prevents you from wanting to travel.
How Much Does Travel Insurance Cost?
The cost of travel insurance is largely dependent on the total value of your trip. You will get the best rates on travel insurance if it is purchased shortly after booking the trip. If you wait too long to purchase the policy, you will either pay a higher premium or have to settle for a policy with less coverage. Most travelers can expect to pay approximately 4-8% of the total cost of the trip for the proper insurance coverage. Basic coverage will be on the lower end of that range while more premium benefits will drive the cost up to the higher end. Senior citizens or those with underlying health conditions may need to pay more for coverage since they are a bigger risk. Traveling to an especially risky area or engaging in extreme sports may also boost the cost of the policy.
