What do I need to know about travel insurance?
Updated: Apr 23, 2022
For many of us, a vacation represents a big investment, financially but also in terms of our well-being. So it stands to reason that we’d want to protect it. By preparing for sudden changes in these post-pandemic times (new travel guidelines, finding out a family member tested positive for COVID-19), you can adapt just as fast. Here are six questions frequently asked about travel insurance:
1. Why should I buy travel insurance? With more booking choices, more available destinations, and more people traveling than ever before, you want to make sure you think of everything before you travel. That’s where travel insurance can help. Travel insurance can help provide coverage for unexpected travel problems, from a canceled flight to a serious illness, inclement weather, positive COVID test, and lost luggage.
2. Why should I purchase insurance for non-refundable trip costs? Often a traveler will lose nonrefundable deposits and prepayments that can add up to hundreds—or even thousands—of dollars. A comprehensive travel insurance plan can provide trip cancellation coverage for the traveler's vacation investment—the insurance company reimburses the traveler for all pre-paid, nonrefundable expenses for a covered loss. Appropriate documentation and receipts will be required in the claim process.
3. Can I buy my travel insurance any time before I travel? Most travel insurance policies must be purchased no later than 24 hours before you travel. Some plans provide extra coverage if you purchase within a certain window, for example within 15 days of your initial trip payment. Check with your travel advisor (me!) before you make your first vacation purchase so as to buy your travel insurance in a timely manner (to make sure you’re getting the most for your dollar). “Cancel For Any Reason” plans and pre-existing medical conditions require policies to be booked within the 15-day window of your initial travel deposit/payment.
This part is confusing, I know. That’s why it’s important to contact me (or your other travel advisor) before you make any travel arrangements.
4. What can I expect to pay for my travel insurance plan? Travel insurance plans are affordable and typically cost 4-8% of the overall trip cost. It’s important to keep in mind the potential financial risk of not purchasing a travel insurance plan. For example, bills for a medical emergency while vacationing can mean thousands in out-of-pocket expenses. The best news is most travel insurance companies give you free quotes for their plan options which makes it easy to choose the best plan for your needs.
5. I already have medical insurance through my employer. Won’t that cover me on my trip? Not always. Check your current coverage carefully before you travel to see if you’ll be covered in the case of an emergency. Many people choose travel insurance to avoid possible deductibles they may have to pay. Also, keep in mind that you may have out-of network medical expenses and that Medicare may not cover medical expenses incurred while abroad.
6. Why is Third Party travel insurance a better option than Supplier insurance? Third-Party Insurance usually covers the entire trip, not just the part booked by the supplier. They cover door to door from the time they leave home to the time they return home. If the client cancels, they will receive cashback by check for their non-refundable costs for a covered reason, not future travel credit. Supplier options do not cover for bankruptcy of the supplier.
Ask me about my Preferred Travel Insurance Provider to who I am affiliated here.