Is travel insurance necessary when traveling abroad?
Travel insurance provides an easy way to insure against trip cancellation, trip interruption, emergency evacuation, accidental death, and loss or damage to baggage or personal effects. Millions of dollars are wasted every year by travelers buying unnecessary travel insurance or travel assistance documents. Interest in purchasing any travel insurance or travel assistance policies is a prerequisite although these products may only be of value to some travelers in limited circumstances.
Buy only the insurance you need. Often, several types of insurance are bundled together and sold as comprehensive travel insurance. Make sure you buy only what you need after reviewing this chapter and doing comparison shopping among the many travel insurance policies
Decide on the type of travel insurance after analyzing the type of coverage you already have. Specific consideration is required of the following facts. While you’re traveling, liability and personal property protection can be provided through a rental or homeowner’s insurance policy.
Check the specific limitations and exclusions of the policy even if there is a possibility that health insurance may provide you with some coverage. Your car insurance policy can also provide cover for a rental car that you use. In some cases, your credit card can provide some protection when you rent a car or if you want to cancel or change your trip.
You can choose excess or secondary coverage with many travel insurance policies. If any other coverage can be applied to the loss first, such as homeowner’s insurance if your personal belongings are stolen, that means travel insurance will only provide coverage for amounts not paid by the primary insurance such as deductibles. Few travel insurance policies offer prime coverage, which is most useful when your own coverage is inadequate or has very high deductibles. The premium for the excess coverage is generally low when compared to the premium for the primary coverage.
The main problem with travel insurance is that most policies have a number of exclusions and travelers often don’t learn about the exclusions until they try to use the coverage. At the time of your travel insurance policy review, you should check the exclusions and definitions carefully to determine how much protection your policy really provides. Since there are losses that are not covered by any other insurance you may already have, trip cancellation and trip interruption insurance are probably the most important types of travel insurance.
In terms of protection, trip cancellation and trip interruption insurance are different although you cannot deny the fact that they are closely related. Now you can be insured and be assured of getting your money back in case you plan to cancel your trip, by choosing Trip Cancellation Insurance before you travel. Trip interruption insurance helps you by providing cover during your trip and reimbursement of certain expenses if you interrupt or change your trip. As the exact terms of the policy may vary, however, the answer to whether trip cancellation insurance is valid to reimburse you for non-refundable, prepaid trip expenses lies in following three things. Your travel companion or companion may have to pay immediate attention to a situation or if you are in a place that forces you to abandon your flight despite booking arrangements. Trip cancellation insurance applies prior to your departure.
After purchasing your trip cancellation insurance, you must ensure that you are covered by the policy when you move from your home to your point of departure. In the same way, trip cancellation policies expire when there is a possibility of a crunch last time. If you purchase cancellation insurance, make sure you are covered for the entire period of time before you leave.