If you are pondering this question, you must have been in the following situations while travelling:
- Lost your baggage or got your personal stuff broken
- Trip cancellation
- Experience an emergency
Just being aware that these things could happen to you or anyone who travels should make you realize that getting travel insurance coverage is in fact a smart move.
Let’s take a look at your options so you’ll be able to decide for yourself where Travel Insurance is necessary or not.
First of all, Travel Insurance is often provided by a number of sources and companies:
- The Airline or Cruise Carrier directly
- An independent travel insurance agency, and
- Your credit card company
As a rule of thumb, Travel Insurance would constitute about 5 percent of your trip, should you pay for it. So, the most noteworthy factor for Travel Insurance would be your Trip’s overall expenditure budget.
Another important factor would be who you take the policy up from, and the types of coverages included in your individual policy. But, remember: you won’t be far from the truth once you understand what Travel Insurance is. Travel Insurance is meant to protect you against unforeseen travel misfortunes, usually in these four common forms:
Trip cancellation and interruptions
Any trip that is cancelled or seriously delayed would lead to reimbursements. The cancellations and interruptions could be of any reason but the most common would be natural disasters and illness. There has already been a few cases of natural disaster scenarios happening in the mainstream news, and now you can be assured that those who got their travels cancelled and have purchased Travel Insurance before the trip are reimbursed the full amount of what they paid for the policy.
You would, however, be wise to clear any doubts about the covered causes listed in any Travel Insurance contract. Fine print for your Travel Insurance must never to be ignored.
Baggage and personal items
Without question, this is the most common area of Travel Insurance coverage. This is because it relates to the most probable of all travel misfortunes – bag thefts, luggage loss, and the most prevalent, technology damages, for example, Smartphone, DSLR Camera and breakages of all your treasured tech. Unlike Travel Cancellations or Interruptions, these reimbursements are likely a cut of the amount you paid for Travel Insurance and never the full policy price.
Emergency Medical Insurance
Much like your typical every-day medical insurance, you absolutely would need this in case of health hazards when travelling in terrible air quality conditions or simply to prepare for risks of sudden lapses like heart attacks, for example. This is the one form of coverage that would keep you guarded against the whole smorgasbord of (very real) probabilities of health issues, environmental issues and everything that would affect your physical well-being.
In some cases, even mental well-being could be protected, so always check the fine print of coverage factors to make sure.
Accidental death or dismemberment Insurance
The most tragic of coverage factors and largely self-explanatory. It would be good to note that, besides death, Travel Insurance does cover Life-impairing accidents like the loss of Eyesight or limbs. It also pays the most in such situations, often up to about half a million dollars.
Is Travel Insurance worth it?
Now, the most essential question is whether you would deem your trip to be worth getting Travel Insurance for. Just with any other insurance policy, it is always a gamble to get Travel Insurance. But you could determine if it’s a substantial probability and a high chance investment by keeping these unchanging criteria points in mind.
Generally, you can rest easy, knowing that Travel Insurance covers emergencies outside of your country that Health Insurance would be unable to cover. That and if a large portion of your trip is non-refundable. In these two cases Travel Insurance would definitely be worthwhile, almost by default. But if you calculate exactly what is at stake: The value of the items and your luggage, the importance of the trip, the nature (and danger risk level) of the trip and the people travelling with you would be important indicators for you.
Of course, always remember to get Travel Insurance before your trip starts. Otherwise you won’t be covered on your trip, simple as that.
This guess post is written by Jeremy Cai. He is a resident Writer at ShopBack.ph. He has been studying financial trends and writing about them for the better part of the 2000s.