Travel Insurance Tips

WHAT IS TRAVEL INSURANCE AND WHY SHOULD I BUY IT?
Travel insurance is a stand-alone coverage that can be purchased in a bundled group or in custom packages. It basically covers what your current insurance plan does not.

Long before your departure start reviewing your current insurance policies. Check your current insurance coverage for the following policies as you may already have adequate coverage.

Auto Insurance: Purchasing rental car insurance is a well known scam. Most auto insurance policies cover you while driving a rental car in the United States. The thing you need to be more concerned with is purchasing additional coverage for driving in a foreign country.

Health Insurance: Your current health insurance won't likely cover medical and dental emergencies in a foreign country. You may need to purchase additional travelers insurance coverage for such emergencies. Often travel insurance policies will NOT cover "pre-existing" conditions so be careful and read the small print and/or ask your insurance agent.

Homeowners or Renters Insurance: Usually covers loss or theft of baggage and other valuables while traveling in the United States. On the other hand traveling to a foreign country will probably require that you purchase additional coverage.

ADDITIONAL COVERAGE OPTIONS
Auto Collision: This type of coverage is usually required if you are traveling to a foreign country. In places like Mexico tourists can be jailed and forced to pay for damages even if the accident is not their fault. Purchasing additional automobile collision for travel coverage can be a must.

Trip Cancellation: This is the most common purchased type of travelers insurance. Trip cancellation insurance protects you in case you are unable to depart on your trip on the date planned. This policy protects against circumstances such as unpredictable accidents and sudden illness. It is available as separate coverage. This will also cover default or bankruptcy of your airline, cruise line, or tour operator. If you decide to purchase trip cancellation coverage, make sure it is not a trip cancellation waiver. Waivers are less expensive, but often cover you only if your trip is cancelled a certain number of days ahead of time.

Trip Interruption Or Delay: This coverage will reimburse you for any financial loss you sustain due to an interruption in your trip. This policy is important to have if you've planned multiple connections or destinations which increases your chances of being delayed.

Delay, Loss, And Theft of Baggage: This kind of policy usually provides a low reimbursable amount. On the other hand some coverage is better than none, especially if you don't have homeowner's or renter's insurance.

Destination Disasters: This coverage will reimburse you incase of a natural disaster such as a flood or earthquake renders your destination unsafe.

Ground Transportation: This kind of insurance policy covers you to and from the airport. It will often reimburse you for costs incurred due to delays caused by ground transportation or an accident. Usually included with trip interruption insurance.

Medical And Dental Coverage: This additional coverage is important when traveling to a foreign country. Shoot for coverage that protects you against any unforeseen out-of-pocket expenses.

Emergency Medical Evacuation: This additional insurance covers transportation costs associated with emergency medical situations.

Final Thoughts: Make sure you read the fine print and fully understand your insurance policies. If you have any questions ask your insurance agent to explain your questions in detail. Make sure you understand which policies are necessary and try to purchase only coverage you need. Purchasing bundle packages often over covers your needs, meaning you may be purchasing coverage you already have.

For basic travel cancellation, emergency medical, and lost baggage coverage, you can expect to pay costs nearly equal to 5% of your total travel package cost.