If you’ll be spending any part of the summer on a vacation, you may be wondering if you need travel insurance. The answer is yes for some travelers and no for others. While some policies can protect you from certain unexpected situations, insurance isn’t necessary for every traveler.
There are different types of travel insurance policies, and not one policy will be right for every traveler. The two most popular policies are vacation plans and travel medical plans. Here is a brief overview of each:
Vacation plans provide the most comprehensive coverage available. Coverage includes:
- Medical Emergencies
- Canceled Trips
- Emergency evacuation
- Delayed or lost baggage
- 24/7 assistance
Combining this coverage into a single package is what makes vacation plans so popular. This type of policy is often the simplest type for a traveler’s needs and it is efficient for most basic setbacks.
Travel Medical Plans
Travel medical plans offer a more focused type of coverage, providing assistance and reimbursement in the event of emergency evacuations and unexpected medical expenses. These plans are perfect for those people who will be traveling abroad and whose current medical coverage does not cover out-of-country occurrences.
There are different types of medical coverage available. Typical plans will provide coverage for emergency medical evacuations and long-term travel. Other plans will provide coverage for pre-existing conditions and multiple trips.
In addition to these two popular plans, travelers have the option of selecting specialty, or add-on, plans. These include plans that provide coverage for emergency evacuations, accidents, and legal fees. To determine whether or not you need to purchase travel insurance, you’ve got to conduct a bit of research.
For instance, which deposits and payments have you made that are non-refundable? If the only monies you will not be refunded are those that you’ve used to purchase your airline tickets, the cost of your travel insurance coverage may be more than the amount of money you would lose.
On the other hand, if you are traveling to Florida or the Bahamas in the peak of hurricane season, the cost of travel insurance can more than make up for the money you would lose if your trip was canceled. Additionally, if your trip is canceled for reasons outside of your control, your insurance policy may be the only thing that can protect you from losing a great deal of money.
Before you make the decision to purchase travel insurance, speak to your agent or research your needs online. In most cases, travel insurance makes good sense if you are traveling abroad, but is unnecessary if you are traveling close to home. In some cases, you may need one type of coverage but not a full policy. These are the types of things that you will need to research before you spend money on a travel insurance policy.
If your policy is going to cost more than you would be reimbursed, or if you have not made any payments which are non-refundable, put the money you would spend on a policy into an emergency fund. If you’ve spent thousands of dollars that you won’t be able to recoup in the event of an emergency, purchasing a travel insurance policy will be in your best interest.
About the author
Jerry Edgars is a travel writer and financial consultant who also blogs on travel, home and auto insurance topics. He often recommends comparing car insurance Toronto using Kanetix insurance comparison to his clients in Toronto so they can ensure they have a good rate on their car insurance.