Travel insurance can protect the investment you made in planning your vacation. There are three major types of travel insurance that cover everything from airfare and hotel expenses, to medical emergencies and damage to your belongings.
If you're unable to travel due to an uncontrollable event, trip cancellation, delay and interruption insurance coverage can help. Here's how the coverage options work:
- Trip Cancellation—Covers costs if you can't travel due to an illness or death in the family
- Travel Delay—Protects you against travel delays, such as a flight delay or cancellation
- Trip Interruption—Reimburses prepaid expenses if your trip is cut short for reasons such as severe weather, airline strikes, terrorism, bankruptcy and jury duty
Travel insurance can help with any medical or emergency dental expenses while traveling. It can also supplement your existing health insurance in the event of an evacuation or overseas hospitalization, which your insurance may not cover. There are several types of medical and accidental insurance to consider.
- Emergency Medical Expense—Covers medical and emergency dental expenses caused by an illness or injury suffered while traveling
- Medical Evacuation—Provides emergency transportation to a hospital in your area of travel or back to a hospital near your home
- Accidental Death—Policies may include coverage for death or dismemberment while traveling on public transportation, such as plane, ferry, train, bus or taxi
Baggage/Rental Car Damage
Of all the things that can go wrong on vacation, losing your luggage or damaging a rental car are some of the most common. You might want to consider these two coverages:
- Baggage Loss—Reimburses lost, stolen or damaged personal items
- Rental Car Damage—Protects you from damage or loss to a rental vehicle
Do You Need Travel Insurance?
There are a few factors to consider that may increase your need for travel insurance.
- Length of Your Trip—Longer trips increase exposure to risks
- Destination—Is there a high risk of hurricanes, crime, illness or political instability?
- Participation in High-Risk Sports—Will you participate in high-risk activities such as mountaineering?
- Your General Health—Are you likely to need medical attention while away?
Cruise and Tours
Cruise and tour operators may offer cancellation waivers. Keep in mind that waivers aren't insurance policies, so they are not regulated.