Travel Insurance: Everything You Need to Know

While virtually everyone who drives realizes the importance of car insurance, some people overlook the benefits of travel insurance. Those who travel more than once a year, and especially those who travel frequently, should consider the advantages and peace of mind that are offered by such insurance.

Travel insurance can be obtained through auto insurance companies or other agencies, and such policies offer protection for vacationers and business travelers against unforeseen events including flight interruption or cancellation.

In addition, those covered by such policies are typically reimbursed for the cost of necessary medical treatment, lost or damaged property, and unexpected delays over which they have no control.

Surprisingly, many individuals who purchase travel insurance fail to familiarize themselves with the terms and conditions of their policy. Understanding the details of the coverage will allow one to make the most of his or her policy, and receive fair reimbursement should an unfortunate incident occur.

The following are the four primary travel insurance categories:

1. Medical Coverage

Most travel insurance policies guarantee emergency transportation to a hospital, either traveler's home town, or in the city he or she is visiting. This service is provided in the event of a medical emergency that renders the covered individual unable to care for himself or herself. With certain policies, covered family members are also transported free of charge.

Almost all travel insurance plans include emergency medical or dental treatment, should such care become necessary while one is away from home. Such claims are usually paid for by the traveler, who is then reimbursed by the insurance company.

The reimbursement usually takes place within one week to ten days after the incident has occurred.

2. Unavoidable Change of Plans

Trip cancellation reimbursement typically comes into effect if the traveler has paid for a trip in advance, but is unable to leave due to injury, illness, death in his or her immediate family, severe weather, airport strikes, jury duty, loss of one's job, threats of terrorism in the area of the world to which he or she is traveling, or the occurrence of a fire or flood in the traveler's home which he or she must attend to in lieu of the planned vacation.

If a traveler's flight is delayed or canceled, travel insurance will generally cover a hotel room for one night and some type of alternate transportation for the covered individual.

Insurance agencies will also pay a designated amount to a policy holder who must cut his or her vacation short because of illness, death, or any of the reasons listed above.

3. Death

Accidental death and dismemberment are also covered under most travel policies; however, the guaranteed amount is usually low, as travelers are in a higher risk category for such occurrences.

Airline accidents are an exception to this rule, and a policy will typically pay a higher amount if one meets death in an airplane, as the odds of this happening are quite low unless one flies frequently. If the latter is the case, insurance for frequent fliers can be purchased.

4. Lost or Damaged Property

Travel insurance also pays policy holders for lost, damaged or stolen luggage.

Such coverage is typically restricted to the duration of the person's vacation or business trip, and does not cover luggage lost by the airline as most airlines will compensate passengers for personal property lost or damaged by the their employees.

In addition, certain policies also cover the following:

• Loss of Cash or Traveler's Checks: One of the worst scenarios most travelers can imagine is being in a foreign country and finding that their money has been lost or stolen. Travel insurance policies can be purchased that cover this type of unfortunate event.


• Pre-existing Medical Conditions: Travel insurance will cover pre-existing medical conditions as long as the policy holder made his or her agent aware of the condition when the policy was purchased. This can be very beneficial for those with chronic illnesses, as they can enjoy peace of mind when traveling regardless of their health.


• Emergency Evacuations: In today's modern world, a city or country can become a dangerous place without much warning. Some travel insurance policies will cover emergency evacuations that occur as the result of economic pressure, war, terrorist attacks or other unforeseen events.


• Automobile Accidents: It can be difficult to drive in a foreign land, especially if the traveler is accustomed to driving on the other side of the road in his or her own country. For this reason, one can easily become involved in a fender bender or even a serious accident. Many insurance policies for travelers offer coverage for such an event.

Traveling can be one of life's most enjoyable activities; however, there is a vast array of unexpected events that can happen to almost anyone who is on a leisure or business trip. Although unfortunate occurrences cannot always be prevented, the appropriate insurance will allow travelers to enjoy the peace of mind that comes from knowing that help is available should a problem occur.