Unexpected is the new norm.
Rarely is that old adage proven true as often as it is in the context of traveling.
But some surprises aren’t as cool as cruising through the ocean, diving under the sea, or scaling a mountain. These are just some of the great adventures that we partake in as we tour across the globe.
With that in mind, it’s important now more than ever to have the necessary coverage for your trip in the event that any delays, cancellations, or emergencies occur.
Now with travel restrictions being lifted slowly over the next few months, people are scrambling to begin traveling again. The most adequate travel insurance policy for you is going to be the one that offers the specific coverage you need for the activities and tours you take.
Here’s a rundown of the most common types of travel insurance, as well as some of the optional benefits you may want to look into.
If Something Happens to Your Luggage
There are few things more irritating than getting to your destination and realizing your luggage has not arrived with you. Pay attention to coverage limits and increase yours as necessary. Even mundane items like laptops and cell phones have replacement costs beyond the limits set by basic policies, so be careful to read your policy closely to ensure your most expensive possessions are fully protected.
Coverage for delayed bags will need some time to pass before you can make a claim – depending on the policy you purchased this can take anywhere from 2 to 6 hours and up. Once claimed your insurance will reimburse you to help replace your lost items, up to the policy limit.
An Interruption In Your Trip
Interruption coverage protects you in the event you have to return home due to an emergency once you’ve already started your trip or before. It will pay for the cost of getting you home and getting you back to your destination once you’re able to travel again.
A good example is medical conditions. If you have a pre-existing medical condition, verify whether it’s included in a policy’s medical insurance provisions. Most insurance companies require you to purchase additional coverage for pre-existing conditions.
Canceling A Trip
Cancellation coverage covers you for pre-paid, non-refundable expenses under a fixed set of circumstances outlined in your policy. For example, you can make a claim when you have to cancel a trip due to a health emergency or illness. Depending on the policy you choose, you may also be able to file a claim if you’re laid off from work or you’re called for jury duty.
If the list of covered cancellation reasons under basic cancellation coverage seems too limited to you, you might want to opt for CFAR or “Cancel For Any Reason”. It offers the fullest coverage but may only make sense for you if your calendar is subject to change at a moment’s notice.
Trip cancelation is a common travel insurance claim, but many policies won’t pay out for trips canceled for any reason whatsoever. Be sure to review the specifics of the policy you’re considering.
By far, the company that offers some of the best and flexible coverage is World Nomads. In addition to what you read above, they also cover over 200 activities for us adventurers, from Mountain biking to bungee jumping to bike/safari/ski tours and much more!
Travel Credit Cards
Some credit cards will even cover your expenses sometimes if you were to cancel last minute. Having a travel credit card can allow you to have a more enjoyable and affordable travel experience, which means planning is key.
Credit card companies such as Chase and American Express have begun to extend the eligible purchase periods giving their customers additional time to earn their signup bonuses. Some companies are now providing additional bonus points for purchases made due to the pandemic.
Examples include streaming services, food, and grocery delivery. It’s important for cardholders to check with their credit card companies to learn which non-travel purchases qualify for bonus points.
This is a great incentive when trying to build good credit if you think about buying a house one day as well.
While travel insurance isn’t terribly expensive when compared with the cost of your trip, there are ways to bring down the cost. If you’re a frequent enough traveler, an annual policy might make financial sense for you.
And if you’re traveling with a group—to take advantage of special events then buying group insurance is a great way for all members of your party to get the same coverage for less.
Even if you decide on picking travel insurance for your international or domestic trip, make sure you understand exactly what’s covered. There are different categories for basic and special coverage. Be sure to check out this article from Money.com who provided the information for this post and make sure you understand and know everything that is covered in your policy.