Why do I need travel insurance?
Thought that crosses most people’s minds when planning their trip.
I am insured.
I do direct bookings using my credit card and only travel domestically.
So is insurance necessary?
Travel insurance is unnecessary if you live in North America and the statements above apply to you. However, things might be different in other parts of the world. Check with the insurance provider in your country for clarification.
Travelers participating in extreme sports must pay an additional premium to get coverage. Regardless of which country you live in.
In North America, your insurance covers you wherever you go. But you get limited or no protection when you travel internationally.
Who needs travel insurance?
International travelers need travel insurance, especially those who make reservations through third-party suppliers. Credit cards might offer some protection, but they may not be enough. Without insurance, you are exposing yourself to undue risk.
Most travel suppliers give customers the option of insuring their trip; however, most refuse. Before opting out, check with your credit card provider to see what they cover and how much. Not all credit card companies offer the same level of protection.
High-end card providers, The Chase Sapphire Reserve and Citi Prestige, offer medical evacuation coverage of up to $100,000. In addition, the American Express Platinum Card has no limit on its emergency medical evacuation coverage.
Their policies are not always straightforward; read the fine print and get clarification if uncertain.
What is covered?
Travel insurance protection depends on the plan that you purchase. Please talk with your insurance broker and let them know what you plan to do on your trip so they can offer the best coverage.
Travel insurance offers coverage for these five major categories; each has its specifics.
- Trip Cancelation or Interruption Insurance
- Medical Insurance
- Evacuation Insurance
- Baggage and Personal lost
- Life Insurance -Three Types a) Accidental Death b) Air Flight Accident c) Common Carrier.
What is the cost of travel insurance?
The cost of travel insurance depends on several factors. Your age, health, trip cost, activities, the country you are traveling to, and plan purchase. If you are over forty, with a health condition, you will pay more than a healthy person under 35. A $3500 vacation costs significantly less to insure than a $10,000 trip. Most travel insurance providers offer packages; some cover the bare minimum. Although it might be cheaper, you expose yourself to a potentially huge financial risk or even your life. Types of travel insurance These are the two types of travel insurance plans available.
Types of plan
- Single trip — travel starts from home and ends when you return home. However, you can travel to multiple destinations before returning.
- Multi-trip — Traveler takes multiple trips in a year and has insurance in their home country. The trip must last for a specific period, generally between 30- 70 days. There are variants of the two that might fit your travel needs. I will talk with your insurance provider about which is best for you.
Use these sites to compare travel insurance costs from multiple insurers.
Do I need travel insurance?
This should no longer be a question you seek to answer. Money is scarce, especially in these times. With the average overseas vacation for North Americans costing a minimum of $3200, it would be wise to protect it. However, if money is not an issue for you, losing a few thousand is not a big deal.
If you are still reading this post, I am sure you want to protect your hard-earned bread.
Although you hope that all goes well before or during your trip, shit happens. You don’t want to fall into a mess and be left to clean up alone. That could mean financial ruin or, even worse, death.
Is saving a few bucks worth it? I don’t think so; the risks are too significant. Pennywise and dollar foolish should have no relevance in the modern travel space. Information is easily accessible for you to make informed decisions.
A comprehensive travel insurance policy is your best buddy. It will be there when you need a friend in your corner. Insurance gives peace of mind, but not all plans are equal. Get the details on what is covered.