Even if you’ve been planning your vacation for years, there are too many things that can go wrong. Especially if you are traveling to another country, travel insurance will not only protect you financially, but may save your life in case of an emergency.
It’s possible for unpredicted events to ruin your travel plans before you even leave. Most travel insurance policies cover trip cancellation in case of terrorism, death or illness of a family member, and a few other reasons. Travel insurance can also be used for medical emergencies, although most often medical travel insurance is sold as a separate option. Medical coverage is usually the least expensive part of your travel insurance, and since neither U.S. based medical insurance nor Medicare will cover your medical expenses when you are outside of the United States, it is something you should have if you are going foreign. In fact, even if you are traveling stateside your medical insurance might not cover you if you are far enough away, depending on your policy.
Finding travel insurance is easy. There are many companies online; in fact there are several Web sites that allow you to compare multiple insurance vendors. But how do you choose the best company? Travel insurance companies are given ratings online by A.M. Best and a few other companies. These ratings are based on things like the insurance company’s financial stability and their percentage of customer satisfaction. Another thing you should look for in your travel insurance is that they are able to pay the hospital directly in the event of a medical emergency, rather than just reimbursing you later. Most travel insurance companies allow a grace period of 3-10 days during which you can review your policy, and cancel it if you want to.
You can buy travel insurance as late as the night before the trip, but it’s more advantageous to purchase travel insurance as soon as you can, since you will be able to get a better travel insurance policy for your money if you contact the travel insurance company sooner. Also, if you have to cancel your reservations due to an emergency before you even leave on your trip, this will be covered by your travel insurance…if you already have it. Plan for your trip in advance; it’s best to have all your traveling plans in order before you get travel insurance. This way you will have a more accurate picture of the total trip cost (the sum of all your travel costs that are non-refundable).
You can expect your travel insurance policy to cost you about 4-6% of the total trip cost, not including medical insurance. Medical insurance is the least of your expenses, though, and usually costs less than $50. Just like home or auto insurance, most travel insurance policies have a deductible, and the higher your deductible, the lower your premiums.
Since you’re buying travel insurance in case of emergencies, make sure you’ll be able to take advantage of it if you need to. Bring your card that serves as proof of travel insurance coverage with you when you travel, and pay your premiums on time. If you do not pay them you are not covered! Another thing you can do to make your traveling safer is to check out the list of travel warnings offered by the U.S. Department of State. This is a list of countries that they recommend for Americans to avoid because of instability or terrorism. You can also get information from the State Department about the levels of crime and the health conditions in specific countries, and you can find the location of the nearest U.S. embassy. Also, try to exchange some currency before you leave so you have a little cash on you for emergencies, and exchange money at a bank rather than a train station or airport. You’ll get a better exchange rate. Bring a carry-on bag with personal essentials, travel light, and get locks for your luggage. Hopefully you’ll never need your travel insurance, but the smart traveler will be prepared for possible eventualities.
By Riannon Cutler