Why Must You Get Travel Insurance?, Insurance is something that is a big part of your traveling expenses but left unmentioned by most travel agencies. But that was so long ago. Today, travel agencies no longer fear of bringing up this subject just because it may ward off potential customers and fail to close significant deals. More than the “negative“connotation due to additional expenses while traveling, no one can dispute the fact that having travel insurance is a necessity. The best insurance can safeguard not only yourself but your luggage, your possession and other important documents, your time, and your health against untoward situations. These factors have become the first considerations for many smart travelers around the world. Your failure to secure insurance, or secure the right one for that matter, in any of the travel insurance agencies both in offline and online market will more likely ruin your plans of having an amazing trip.
Why Must You Get Travel Insurance?
The Travel Insurance Association of America states that there is an increase of about 30% of Americans who bought travel insurance, a significant increase before the 9/11 attack of only 10%, and 70% of people who go on cruise and purchase insurance. Most of today’s travelers are trying to find the best insurance that is fitting to their needs as well as budget for many reasons. Among the top 3 reasons include peace of mind, protection against any unexpected mishap or accident, and alleviated concern against losing your financial investments for your trip. But generally, people find it necessary to buy insurance due to the following reasons:
- There is a delay or cancellation of your flight.
- When you lost your luggage containing necessary medications. Emergency prescription must be filled for you.
- When your pertinent travel documents like passport or / and wallet are lost, stolen, or misplaced, and your passport must be replaced and you definitely need some emergency cash.
- It is necessary for you to cancel your entire trip’s plan due to an illness.
- You have been involved in any type of accident but there is no available and adequate medical emergency treatment. You need to be medically evacuated.
- You need to undergo emergency medical treatment in an alien country.
- Your airline, bus operator, or cruise line goes bankrupt. You will require having your expenses that are non-refundable be covered and be able to go to your desired destination.
- Forces of nature like hurricane and tsunamis will require for your forced evacuation from your hotel, cruise, or resort.
- You have to cancel your entire trip for security reasons due to terrorist attacks/incidents occur in your desired destination.
The fact is that even though the majority of people not buying travel insurance are aware of trip and flight cancellations insurance, there are still a lot of people who are unfamiliar with baggage coverage, medical evacuation and health insurance during travels. Even for the travel insurance agencies patrons, only 50% were familiar with insurance on medical evacuation.
What Coverage are Offered by Travel Insurance Agencies
The premium of your chosen insurance plan will depend on the type of coverage you will include on your travel insurance plan. You need to get yourself familiar with all the types of insurance available for you and be able to understand its importance every time you go out of town or country. But the following are the most frequently bought coverage on travel insurance.
Trip Delay and Cancellation Insurance
The important factor here is the price point. Think about it, if you are flying on a major airline with $59 ticket fare from Burbank and your destination is Las Vegas, you will be protecting just a small investment. This type is not the best travel insurance for you in this case. But will it still be the same when you’re going on $15,000 dream cruise in the Bahamas or Cape Islands? Definitely not and you have to get this type of travel insurance since you will be covered should there be medical emergency and you cannot make it, or for some reason you missed your trip, or your travel provider – bus line, airline, or cruise line goes bankrupt. Just keep in mind though that when purchasing this type of insurance, it is best that you buy it in separate travel agencies. This way, you are protecting yourself against being left hanging when your cruise ship agency and its in-house insurance agency go bankrupt.
Flight insurance plans are being offered at airports promising to provide big pay outs should your flight crash and you will be included in the casualties. Word of caution, although this type promises big pay outs, you will be paying the most expensive annualized premium for this travel insurance in the market.
Not because you already have a healthcare insurance means you are already covered when you want to travel outside the US. There are even instances the insurance agencies will not cover your insurance if you are aboard a vessel bearing a foreign flag, cruising in the United States waters. Choose the one that will cover medical evacuation as well as repatriation. You will never know when illness will strike, and if you have this kind of insurance, you are assured that you will be treated, stabilized, as well as flown back in US should you get sick or get injured overseas. It is important that you choose the best travel insurance where you will be allowed to choose the doctor as well as the medical facility, unlike other insurance where you have no control of where you will be taken for initial treatment. Furthermore, travel insurance will help in facilitating payment and will be your advocate in making sure you are charged fairly.
Also Read: Choosing the Best Travel Insurance
Frequent overseas flyers are advised to get baggage insurance to protect their baggage in case it is lost, delayed, damaged, or stolen. Just remember that US airlines have $3,000 per incident coverage for lost baggage based on a depreciated value.
Some travel insurance also provide straight coverage for non-refundable tickets from different airlines that you cannot use but do not want to pay extra for change fee of $100. This may run about $13 per $100 insurance coverage, a hefty premium but well worth every penny if you think you may have a change of schedule after buying your airline tickets.