What types of travel insurance are there? There are several different types of travel insurance and if you are planning on taking out insurance, do some research as to what level of coverage might be best...
There are several different types of travel insurance and if you are planning on taking out insurance, do some research as to what level of coverage might be best for you. The four main areas of coverage are: trip cancellation insurance, baggage insurance and personal effects coverage, emergency medical assistance and accidental death.
You can take out travel insurance for any or all of these options, although it may not always be necessary. Make sure you understand exactly what your policy does and does not cover. Check to see what your existing health insurance will cover of you are traveling overseas.
Trip cancellation insurance may be the best option for most people and this can generally be purchased directly from your airline, tour operator or cruise line. As the name suggests, this type of insurance specifically covers cancellation of your trip, either by yourself or your company. The most common reasons for delays covered by this are an airline or cruise company going bankrupt, natural disasters or weather delays, strikes or labor disputes.
Of course, the cost of travel insurance can vary greatly, depending on the amount of coverage you need, the length of your trip and even whether you plan to engage in what the travel industry recognizes as "hazardous sports". If you travel frequently throughout the year, there may be a travel insurance policy to cover this.
If you are traveling as part of a group or as a family, some travel insurance policies will cover groups specifically - taking out group coverage may be significantly cheaper. There are also policies that cater to senior travelers and students - in short there is a travel insurance policy for everyone, regardless of their situation.
There is also the concept of "primary" or "secondary" coverage when it comes to travel insurance - primary coverage means that the insurance company will pay up before any other insurance you may have takes effect; secondary insurance means that they will only pay when you have collected from any other sources open to you.
In general, most comprehensive travel insurance packages that cover everything a traveler might realistically need will cost between 4% and 8% of the actual cost of the trip itself. If you feel you need insurance for emergency medical evacuation this expensive option will almost certainly raise the cost of your travel insurance.
Closely linked with emergency evacuation is the policy covering emergency reunion services, which covers the costs of flying family members to you if you are hospitalized and unable to return home.
A note about insurance when it comes to flying - most airlines offer liability for lost or damaged luggage; the amount is usually adequate but does not cover particularly valuable items. The airlines are also more efficient when it comes to informing passengers about canceled or delayed flights, and protecting them on alternate flights or offering a refund.
