How Travel Insurance Can Save Your Vacation

by Dominic
(Brisbane, Queensland, Australia)

The image of your vacation and the reality of it may turn out to be two very different things. Minor issues such as catching a cold or dealing with flight delays may seem major at the time, but they pale in comparison to what can happen. A stolen passport, broken leg, and a canceled flight are more difficult to deal with and can result in a much more expensive vacation than planned.

The best protection for potential problems on vacation is to purchase travel insurance before you leave. This is much more reliable than trusting strangers to help you while in distress or spending thousands of dollars to solve a vacation catastrophe.

Simply put, travel insurance provides medical and financial protection while you travel. Purchasing it gives you peace of mind and the ability to relax and truly enjoy your vacation. Travel insurance is available for domestic or international travel. Travel agencies, cruise lines, tour companies, and third-party companies sell travel insurance.

Not all travel insurance policies are equal so you may need to shop around for the appropriate coverage to meet your needs. Often, travel agents offer policies that are quite limited and may only offer coverage in the event the trip is canceled. Third-party policies, available from brokers who sell various types of insurance, tend to be more inclusive and can cover the following:

• Emergency medical expenses


• Accidental death or injury


• Funeral expenses while overseas


• Delayed luggage item replacement


• Lost, damaged, or stolen possessions


• Legal costs


• Personal liability damages


• Trip cancellation


• Flight delay


• Curtailment


• Emergency evacuation


• Rental car damages

You should be vigilant and read the fine print on any policies you are considering. Travel insurance policies do not automatically cover anything. A basic travel insurance policy may only address emergency medical expenses, luggage problems, and trip cancellation, and even that is not guaranteed to be true depending on the policy. However, there are the events and circumstances that are commonly not covered by even a thorough policy. These include the following:

• Pregnancy-related medical care


• Terrorism


• Injuries due to high-risk sports


• War-related injuries


• Medical expenses relating to alcohol or drugs


• Pre-existing medical conditions

In certain policies, some of the above circumstances may be added to the policy, but it is not universally true. Read the fine print and ask questions to learn exactly what is covered with your policy.

There are cases where travel insurance may not be available at all. For example, if you are traveling to a high-risk area of the world that is in the midst of war or where a natural disaster is projected during that time of year, you may be unable to get comprehensive coverage. You may only be eligible for basic coverage in the event of an accident or lost luggage.

The biggest advantage to having travel insurance is having the access to a company with concierge services and emergency travel assistance. Instead of just paying the bill from your collected receipts after the fact, the travel insurance company can help you while in a foreign country by contacting the embassy in that country to find a doctor that speaks your language.

They are usually available 24 hours a day, 7 days a week, so there is always someone available to help you in the event of an emergency. Be sure to pack your travel policy documentation with you while you travel so you can call the insurance company with your policy number in the event of a problem.

The disadvantage of travel insurance is that it can be expensive, potentially costing anywhere between 5% to 7% or more of the total vacation cost. However, you are doing a great disservice to yourself by evaluating its value based on cost alone. If something bad were to happen, it is likely that you would pay even more than that to resolve the issue.

Also, you would not have the 24/7 access or assistance from the insurance company to help you. Travel insurance ensures that problems can be solved as quickly as possible so you are still able to enjoy your vacation. Like other types of insurance, it is important to shop around, read the fine print, and find the best deal possible.