Travel Insurance Policy is Insurance which intended to cover any unwanted expenses during travel eg. Medical Expenses, lost luggage, trip cancellation or delay due to illness of self or co-traveler, any accident during travel due to technical & natural either internationally or domestically.
Insurance policy can be purchased for a particular trip or also can purchase for multiple trips of given time frame of all trips. Trip insurance cost may vary as per optional benefits, for example, some medical travel policy rates are higher and some lower, as per country’s medical cost we are traveling to. Like in United States medical cost is higher side.
This insurance can include many specific types of coverage, below is mentioned few of them:
- Travel Health Insurance
- Travel Medical Insurance
- Trip Cancellation Insurance
- Flight Cancellation Insurance
- Baggage Insurance
- Life Insurance
There are many best travel insurance companies available in the market, but should be taken care of while purchasing travel insurance plans that which particular benefit is included or excluded, limits apply or conditions apply in each policy.
What is covered by travel insurance?
The most common travel risk are covered by this policy are:
- Lost, stolen and damaged luggage.
- Lost and stolen documents. Many insurance companies support to arrange temporary passport.
- Travel delay due to weather condition.
- Trip Cancellation due to the death of someone in the family or due to illness & injury.
- Medical Treatment including transportation to medical team.
- Situation raised by Natural Calamity like hurricane.
- Emergency travel facility (flight tickets etc.) is covered in this insurance during a terrorist attack.
How much does it cost?
Same policy will not fit for all. But in general, it cost approx 4%-10% of total trip purchase. And it varies as per conditions below:
- Age of the travelers
- Number of travelers
- Length of travel
- Type of coverage
The age of travelers is considered the main factor of rates vary. For example, if a traveler is more than 65yrs old then the policy rate will be high as there is a risk factor is high for him/her.
Number of travelers and length of travel is also a prime factor in policy rates. If number and length is higher side than obviously policy rates will be high.
The type of coverage will also affect the price of policy. No-frills comprehensive policy will be cheaper than policy which includes optional benefits like higher coverage limit for medical treatment, trip cancel for any reason or rental car collision, etc.
When should you buy travel insurance?
Booking of flight tickets of thousands of dollars, hotel booking, taxi booking is mostly non-refundable. And nobody knows what is going on in the future. So due to any unforeseen reasons you may face your trip cancellation or may face any natural disaster or terrorist attack then your amount will evaporate and if you purchase a travel policy at that time then it seems that you are playing with insurance providers system.
So it is better to buy travel policy at the time of trip purchase to avoid any risk.
Can you purchase travel insurance after booking?
Yes, you can purchase insurance policy after booking but better to buy along with it. This insurance policy is designed to protect a traveler from certain unforeseeable events, not foreseeable events.
So it is advised to avoid any unforeseen circumstances e.g Trip Cancellation due to illness of yourself or in family, hurricane-affected in concern destination or any existing medical condition raised before few days of trip start. Then to consider these types of issues you should buy travel policy on time or without getting too late.