Travel Insurance 101

Travel insurance can be a powerful tool for staying protected while on the road. Its original purpose was to protect travelers from theft, but over the years, travel insurance coverage has been adapted to pay for the costs of canceled flights, hospital treatments and dozens of other unexpected costs. Understanding how travel insurance works and how different types of coverage act in an emergency is essential when planning for a trip.

Travel Insurance and Trip Cancellation

Travel insurance premiums are based on things like the length of trip, trip cost and age of traveler(s). Travel insurance usually includes trip cancellation coverage, which provides an added level of peace of mind for travelers and covers the costs of missed flights, canceled reservations and other expenses associated with an unexpected trip cancellation. Different insurance companies offer very different terms for their trip cancellation coverage, but in general, policy holders don’t have to submit more than simple receipts (and proof that a covered event occurred) to receive a payout on a trip cancellation claim.

Travel Insurance and Medical Expense Coverage

Many travel insurance policies also offer medical expense coverage. This pays for the costs of treatment and hospitalization where a traveler’s normal health insurance policy won’t kick in. This can be significant in a number of situations. For instance, if a traveler has an HMO or a PPO, an out-of-state hospital might not take his or her insurance, and if a traveler gets sick in a foreign country, the cost of an emergency flight back to the United States could easily exceed several thousand dollars. Travel insurance with medical expense coverage takes care of those costs and makes it much easier to travel domestically or internationally without worrying. Having medical expense coverage is absolutely essential during long trips and is one of the most popular benefits of travel insurance.

Travel Insurance Add-Ons

There are dozens of other types of add-on travel insurance coverage. Once again, they vary from one insurance company to the next. Many insurance companies offer coverage for foreign funeral and burial expenses for a sort of life insurance coverage. Other common add-ons include coverage for terrorist attacks and kidnapping ransoms as well as coverage for smaller costs like baggage loss and rental car liability insurance. Travel insurance companies can protect policy holders from almost any cost directly associated with a trip, and by shopping online and comparing costs, buyers can find great, protective travel insurance policies at low prices.

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