One thing that always needs to be considered when planning a trip is the necessity and importance of having a travel insurance. Even if you travel to a place you’ve already been to several times, you never know what can happen in the future, and it’s better to play safe here. You also need to take into account that medical expenses are typically much more expensive when we are far away from home.
Before starting to talk about all of the benefits of travel insurance, let’s get something clear. There are medical travel insurances, traveler’s assistance insurances, and trip cancellation insurances. Even though their names are similar, they don’t work in the same way. A medical travel insurance only covers the cost of medical expenses and prescriptions. A traveler’s assistance insurance covers all kinds of problems that may come up when you travel, like losing electronic devices or your baggage. And finally, a trip cancellation insurance covers all the expenses associated with the cancellation of your tickets, entrances, tours, and other administrative expenses.
If you are trying to find the best travel insurance for your trip, you need to consider that there are four main benefits which may or may not be included in the package that you’re being quoted for.
- Trip Cancellation
A trip cancellation insurance typically reimburses the amount that you had paid for your tickets or tours should you need to cancel the trip. Be aware that there is a list of reasons for which you may cancel your trip and receive a full refund. This list appears in the policy when you are acquiring the insurance, so take a good look at it. Check if there’s something missing that you think has a chance of happening which would make you have to cancel the trip.
The cost of trip cancellation tends to be between 5% and 7% of the total cost of the trip. So, for example, if your trip will cost you $5000 in total, the insurance would be around $250.
- Baggage Loss
A baggage loss insurance typically reimburses you for damages to your baggage and personal belongings, or directly for their loss. This is important if you are travelling with expensive things, or with things that have an important sentimental value. The cost of a baggage loss insurance would be around $50 for up to $1,000 in value of your belongings.
If what you are insuring is over $1,000, the insurance will be a bit more expensive, but will also give you the peace of mind knowing that if something happens to your things, you will be compensated a certain amount of money.
- Emergency Medical Assistance
An emergency medical assistance insurance gives you the possibility of seeking medical assistance during your travels. If you get sick or injured during the trip, the incurring medical expenses of the foreign hospital will be taken care of by the insurance. If you need to fly back to your country because of a disease or injuries, this insurance will also cover those costs. This is even more important if you need to take a flight back home while being badly injured, because you will be required to be in a stretcher and have a doctor with you during the flight. Thus, making the cost extremely expensive if you’d had to pay it yourself.
- Personal Liability
This insurance covers legal liability when travelling abroad, including all legal expenses for bodily injuries or damage to property of other people as a result of a claim made against you.
So, these are the basics for understanding how travel insurance works and the different benefits it has. We recommend you now visit a travel insurance comparator such as this one, to check out the different packages a