What is travel insurance?
Travel insurance is coverage designed to protect against risks and financial losses that could happen while traveling. The risks range from minor inconveniences such as missed airline connections and delayed luggage all the way to more serious issues including injuries or major illness.
Do You Need Travel Insurance
Travel insurance is unique and varies depending on the details of your trip. The best policy covers only what you need at a price that fits your budget.
• Many companies selling travel packages also offer travel insurance.
• Some travel policies cover damage to personal property, rented equipment, such as rental cars, and even ransom requests.
• The main categories of travel insurance include trip cancellation or interruption coverage, baggage and personal effects coverage, medical coverage, and accidental death or flight accident coverage.
• Coverage often includes 24/7 emergency services, such as replacing lost passports, cash wire assistance, and re-booking canceled flights.
What types of travel insurance are there?
• Single trip – covers you for a one-off trip for a set period of time.
• Annual/multi-trip – covers you for as many trips as you take within a whole year. Typically more cost-effective than the single trip option if you’re taking more than two holidays within that period.
• Backpacker/gap year – provides cover for multiple destinations over an extended period. You might need to add cover for the kinds of activities you plan on doing, such as adventure sports, work or volunteering.
• Winter sports – specialist cover if you’re going skiing, snowboarding or other winter sports. These are considered by insurers to be high-risk activities and so are excluded from most standard policies.
• Worldwide – there are usually two types of worldwide policy – those that cover the US and those that don’t.
• European – not always clear cut, as some policies cover areas that aren’t technically in Europe.
• Family – covers two adults plus up to four children travelling together. Suitable if your children are 18 or younger and live full-time with you.
What does travel insurance cover?
• Injury or sickness
• Lost luggage
• Last-minute cancellations