How Does Travel Insurance Work?

The Importance of Travel Insurance

Insurance was designed to keep you and your investments protected. More people than ever before are purchasing travel insurance for their trips and vacations due to the valuable benefits associated with having travel insurance and the availability of different types of policies. Travel insurance provides peace of mind to business and leisure travelers alike and offers essential protection in the event of unforeseen circumstances ranging from a lost piece of luggage to a cancelled trip to an emergency medical evacuation.

Choosing the right travel insurance policy from a reputable insurer is an important component of preparing for your next trip. After all, one size does not fit all when it comes to insurance, and you want to ensure that your needs are covered by your travel insurance policy.

To help you navigate the world of travel insurance, we summarized the basics so you can choose a policy with confidence:

What is Travel Insurance?

Travel insurance is a type of insurance that provides the policyholder coverage against specified financial losses associated with travel.

Typical comprehensive travel insurance policies can cover:

• lost or delayed baggage
• trip cancellations and interruptions
• missed connections and travel delays
• medical emergencies
• emergency evacuations
• accidental death & dismemberment

The purpose of travel insurance is to protect your investment before and while you travel. Travel insurance also can offer critical assistance in the event of a travel emergency. Most travel insurance companies are available 24/7 to help travelers access benefits, file claims and be a resource in the event the unexpected occurs.

Different Types of Travel Insurance

Let’s break down the different types of travel insurance coverage typically found in a comprehensive travel insurance plan. When you are planning a trip, it is important to understand the insurance options that may be available so you can choose the coverage that best suits your needs.

Trip Cancellation and Trip Interruption

Trip cancellation coverage can reimburse you for prepaid, nonrefundable trip costs in the event your trip is canceled for a covered reason prior to your departure. Typically, travel insurance plans with trip cancellation coverage will cover up to 100% of your trip costs that you insure if you cancel for a covered reason listed in the policy.

Trip interruption coverage allows you to interrupt your trip and return home for a covered reason, after you have already departed. Most travel insurance plans can cover up to 100%, 125% or 150% of your insured trip costs if you must interrupt your trip and return home for a covered reason. The 125% and 150% coverage levels offered in certain plans are meant to compensate for travel being more expensive if you book at the last minute to return home.

Covered reasons and related requirements for trip cancellation and trip interruption will be listed in your policy, but commonly include:

• illness, injury or death of the insured party, traveling companion or family member
• inability to travel due to severe weather conditions, such as a hurricane
• bankruptcy of the insured party’s airline, cruise line or other carrier
• an act of terrorism at the insured party’s destination, close in time to the planned visit

Lost, Delayed, Stolen or Damaged Baggage

If your baggage is lost, delayed, stolen, or damaged during your trip, you can receive compensation up to the limit of your policy. You may also receive reimbursement for essentials that you need to purchase while you wait for your bags to be located and delivered to you. Always save your receipts and be aware of any requirements for coverage and caps on reimbursement.

Travel Medical Insurance and Emergency Medical Evacuation

Despite your best efforts and intentions, health issues can arise while you are traveling. This is why one of the most important components of travel insurance is travel medical insurance. It is unlikely that your home health insurance policy will cover you when you are out of the country, and it may even have significant limitations if you seek care out of network. Travel medical insurance can cover the high cost of medical, dental, hospital and other emergency health-related expenses that you incur while traveling. In addition, emergency medical evacuation coverage can cover the cost of transport to a nearby medical facility, or even to your hospital of choice at home, depending on the terms of your policy.

Accidental Death and Dismemberment

If a serious accident occurs during a trip, accidental death and dismemberment insurance can provide a lump sum payment to you or the named beneficiary. Be aware that there are exclusions to this type of coverage and to be covered for accidents that occur during thrill-seeking activities such as skydiving or mountain climbing you may require a specialized rider or separate policy.

Car Rental Collision Coverage

These days, it is more common for travelers to rent a car at their destination to explore at their leisure. Car rental collision coverage can be a useful coverage option to consider. If you are planning to rent a car during your trip, it may be wise to ensure that your policy covers damages to the car resulting from a collision.

Where to Buy Travel Insurance

You can purchase travel insurance from a comparison website, travel agent, private insurance company, airline or cruise line agents, or insurance brokers.

At TravelInsurance.com, we believe that the easiest and most cost-effective way to get travel insurance is to research and compare your options and buy online. We founded TravelInsurance.com out of frustration with the limited and opaque trip insurance options offered by airlines, cruise lines and online travel agencies that typically offer less coverage for more money. With TravelInsurance.com, you can compare the market and buy a plan that covers all your needs and fits your budget, rather than being offered a single policy that may have significant gaps in coverage or cost more than you wish to spend.

Here are the Top Reasons to Compare and Buy Travel Insurance on TravelInsurance.com

• We are a licensed agency (all 50 states) and only work with global insurance companies that are highly rated for financial stability.
• Our easy-to-use website allows you to compare and buy travel insurance plans from all major travel insurers in just a few minutes and you’ll receive instant confirmation of coverage upon purchase.
• Save time and money by comparing your options vs. the single option offered to you by a travel agency or online booking website.
• Travel insurance plan prices are regulated by law which means you won’t find a lower price anywhere else for a plan found on TravelInsurance.com.
• All coverage details, definitions and exclusions are just a click away during the quote, comparison, and purchase process.
• Millions of customers have purchased travel insurance on TravelInsurance.com and we have helped them protect over $3.5 billion in trip costs.
• We offer thousands of customer reviews of the plans we offer so you can make an informed decision during the purchase process.
• Every purchase is secured with high-grade encryption for your peace of mind, and we take your privacy seriously.
• We are a member company of The US Travel Insurance Association (UStiA), are A+ rated by the BBB and have over 100,000 five-star reviews from verified customers via Shopper Approved.

How Travel Insurance Works

Travel Insurance Policy Coverage Limits

When you purchase a travel insurance policy, know that every policy has limits to what can be reimbursed or paid. For example, if you lose several bags, your travel insurance may only cover up to $500 worth of lost luggage if the policy limit is capped at $500, even if your luggage is worth $1,000. Another example would be an accident or injury that requires medical attention in a foreign country. If you choose a policy with a $15,000 limit for emergency medical coverage and your hospital bill ends up being higher than that amount, you would be responsible for the amount above the policy limit. To avoid these scenarios, it is best to buy a policy that adequately covers your needs. It is also important to be able to support any claims that you file with receipts and other evidence of your expenses and/or the value of your personal property, depending on the type of claim.

Some travel policies operate by requiring that you first pay a deductible. If you do not pay the deductible, the insurance company will not reimburse you for your claim.

How to File a Claim

If the unexpected happens before or during your trip and you want to file a claim, it is important to contact your travel insurance company right away. The claims specialists will let you know what information you need to submit so that your claim can be processed promptly. Claims specialists can also advise you on your policy limits and any deductibles that may apply. Be sure to keep organized records of all expenses and other documents and details that relate to your claim to avoid any delays in processing and payment.

Bottom Line

Travel insurance has become essential for savvy travelers worldwide. In addition to protecting your trip investment, travel insurance can help protect your health, belongings, and your peace of mind.

TravelInsurance.com allows you to shop and compare policies from top insurers so you can find the travel insurance that works best for you at the lowest price guaranteed.

Compare and Buy Travel Insurance

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