You can travel and visit the most beautiful places in the world by just having passport or tickets and you are setting off happily without any travel insurance. Probably, the most essential purchase that you can ever do while you travel is an insurance for you and your dependents. However, some people do not even bother to have one especially if the risk on that vacation is very low and only costs little money. Therefore, this is not worth insuring according to some people. On the other hand, it is worth insuring if you are planning to do hand gliding in an isolated island during typhoon season. If you are susceptible to illness and injury, you might also need to insure your travel.
Travel insurance of all forms is offered by your private insurance carrier, credit card provider, travel agents as well as expert travel insurance. It is important to know if your vacation is already covered by your health or auto insurance and credit card. Sometimes, you are also skeptical in buying extra insurance because of the bad deals and tricky policies, not to mention the difficulty in filing for a claim.
You can have a simple insurance policy for only $10 that will already cover your death in any event of plane crash. Other comprehensive policies cost around 3-8% of the over-all cost of the trip but it will depend upon the type of coverage that you will choose. The best thing about insurance is that it is very flexible and allows you to you choose the coverage that you prefer. Find out what you are covered for and then purchase only the needed insurance coverage. The question is which kind of insurance you should choose from and from what travel agencies?
Also Read: Tips for choosing the best travel insurance agency
Three Types of Insurance for Traveling Purposes
The three main types of insurance are trip protection, car rental or luggage protection and medical coverage.
Trip Protection – This type of coverage is divided into 3 parts – cancellation coverage, delay coverage and trip interruption. Under trip cancellation, the expenses that you have paid will be refunded if you cancelled your trip because of ailment or if any member of your family is sick or passes away. In case your trip was delayed due to several reasons, your hotel expenditures are handled by delay coverage. Another type of trip protection is the trip interruption that covers the trip if you got sick, any family member dies or falls ill or your trip was cut short.
Medical Coverage – Health or medical policy covers dental and medical expenses acquired due to illness or injury. In the event that you had an accident in remote place and you need to be transferred through helicopter, medical evacuation will handle the expenses. Usually, it is already included in medical coverage insurance but you can also buy it as stand-alone policy. You can also purchase dismemberment and accidental death coverage that will cover your flight at all times. Just like with any kinds of life insurance, it works by paying your dependent with certain amount of money in case you died while traveling.
Car rental or luggage protection – This covers the expenses in any event that you had an accident if you rented a car or your baggage got lost, stolen or damaged. However, damage or loss of baggage in flight is not covered on this kind of travel insurance policy. That is why, it is very essential to have a deeper understanding about the terms and conditions of an insurance policy to know what are covered and the circumstances.
Tips in Buying Travel Insurance
The first step that you need to do in determining your needs for travel insurance is by checking all your existing insurance policies as well as your credit cards. Most of the time, your life, health and auto insurance already cover a big portion of what you pay in travel insurance agencies. Some credit cards may also cover a part of your travel. You can call your insurance agent, inform him about your plans and ask for his recommendation.
The following are some purchasing tips on how you can find your best travel insurance and what to look for.
Make sure that you understand the coverage limits and the deductibles.
Beware of travel insurance policies included in your travel because sometimes they are usually more expensive.
Shop around in looking for your best travel insurance. Compare the coverage and the prices of every policy offered by different travel insurance agencies.
Know the dangerous activities that are covered by your insurance and weigh them against your leisure plans.
Ensure that destinations are not restricted and you can use it anywhere you go.
Buy your travel insurance ahead of time to maximize the coverage.
In case you had an accident or you lost your baggage, then you need to file an insurance claim. Filing your claim with travel insurance agencies is not that different when dealing with a personal agent. It is important that you are straightforward about your plans in traveling as well as in buying your policy. The travel agencies should know every place that you are planning to visit and the kind of activities that you will do there.
If you file a claim, take note that travel insurance agencies are around to generate income. As much as possible, they will try to pay you less or even not at all. To make sure that your claim will be paid, you should keep all necessary forms and receipts. If something was stolen from you, immediately report the incident to local police for proper documentation. Obtain copies of all the reports and make duplicates for your reference especially if original copies are needed by the agency. Track the people whom you are talking to, the duration and what transpired during your conversation. Pictures, official letters and police reports will all help so that you will get your claim quicker. Then, your claim will be carefully investigated and if they find it valid, you will be refunded after several weeks. However, if they do not accept your claims, you can always make an appeal.
