Travel insurance provides financial protection if you face certain problems when you’re travelling or on holiday. it covers a range of possibilities, from lost luggage to the cost of medical care if you become ill or have an accident while travelling.
Travel insurance primarily provides coverage for non-refundable expenses in case you need to cancel your trip for covered reasons.
How Travel Insurance Works
Travel insurance works by covering financial losses associated with travelling; it can be useful protection for domestic or international travel. Whether you miss your flight, lose your luggage, or need medical assistance, the travel insurance company covers every expense.
Travel insurance may be sold online by travel agents, private insurance companies, or insurance brokers when booking your flights.
What Does Travel Insurance Cover?
Travel insurance provides the following coverage:
You can get compensated for unplanned expenses if your flight is delayed.
Loss of baggage
If your luggage is stolen while travelling, you can get compensated for it. Usually, most airlines reimburse if the loss or damage is their fault; however, this reimbursement may not be comprehensive or come fast enough, which is why baggage insurance coverage brings an additional layer of protection.
In case you need to return home from your trip early due to important reasons, it will help you pay for the additional expenses of making arrangements to return home early.
If you get sick or injured while on your trip, travel insurance will pay for the expenses. Your health insurance may not cover you outside your home country or may provide limited coverage.
Accident death coverage
An accident and death policy provides coverage in case an accident or death occurs during the course of travelling. However, this does not cover accidents or deaths caused by drug overdoses.
What is Not Covered by Travel Insurance
A lot of personnel fall into the trap of only focusing on what the travel insurance policy covers and neglecting what it excludes.
Below are some of the areas travel insurance does not cover while travelling.
Cancellation initiated by the tour provider
If the company that is responsible for the tour cancels the trip, there will be no compensation from the travel insurance company. When a tour company suddenly cancels the trip after you’ve made a reservation, there will be no coverage. This is because it was the tour operator that initiated the cancellation, not you.
Travel insurance does not cover cancellations caused by war. Insurance companies do their possible best to ensure coverage against a lot of mishaps. However, the travel insurance policy does not cover cancellations caused as a result of war.
Should a problem occur as a result of a pre-existing illness during the trip, there will be no compensation from the travel insurance company.
Invalid cancellation reasons
If the reason for the cancellation is invalid, there will be no reimbursement from the travel insurance company; however, only valid reasons can be considered when cancelling.
Pregnancy delivery charges
A travel insurance company does not cover the delivery charge of a pregnant woman in the course of travelling. but it does not mean that pregnant women cannot make use of travel insurance.
Mistakes to Avoid When Using Travel Insurance
People make a lot of mistakes when buying travel insurance. Sometimes, while discussing with insurance agents, they agree based on the conversation held and ignore reading the policy form, documentation, and entire paperwork. This led to their not having a full understanding of the rules and regulations.
Some of these travel insurance companies do not offer any coverage for medical expenses, and there can be a lot of exclusions contrary to what you need. You will only get to know this by going through all the provided documents.
Read and review the policy carefully, and ask questions concerning any coverage excluded.
Benefits of Travel Insurance
Here are some benefits of using travel insurance while travelling:
- Covers you against loss of property and luggage.
You’re covered if your belongings are lost or stolen while travelling.
- Prevent you from incurring expenses arising from the trip. You’re cancellation
You’re covered for any cancellation fee and loss of deposit for your prepaid travel arrangement if you cannot make your flight or planned accommodation due to important reasons that are out of your control.
- Alternate transport
If you encounter a delay and cannot make a preplanned event such as a wedding, funeral, conference, or any pre-paid tour, your alternative transport expenses will be taken care of by the travel insurance.
- Personal liability
Compensation for legal liability, including legal expenses for bodily injuries or damage to property of another individual as a result of a claim made against you.
- Accommodation and travel expenses
If you fall sick or are injured while travelling and can’t get home, travel insurance will cover the cost of unforeseen additional accommodations and travel expenses.
Travel Health Insurance in Europe
Here are some of the best health insurance companies in Europe in Europe.
GoeBlue is one of the best. it provides the best medical care no matter what country, town, or zone you find yourself in. Their plan is offered in cooperation with local Blue Cross and Blue Shield companies.
They provide coverage for medical needs when travelling. They have different policies and offer various services for various needs and preexisting conditions. But are mainly focused on medical coverage.
Seniors can get high levels of medical coverage while travelling, but it might be expensive depending on their needs. The best plan for seniors requires existing health insurance. High level of medical coverage for seniors up to 95 years old.
SafetyWing Nomad Insurance
This travel health insurance company offers coverage for doctors, hospitals, emergency medical evacuation, COVID-19 coverage, and 24/7 emergency assistance. You can talk to a real human who is also a traveller.
It’s flexible and works like a subscription, with multiple services for different purposes. And it can be purchased while already travelling in about 180 countries.
It also offers coverage for travel delays and loss of luggage.
World Nomads offers some of the best protection and more inclusive options. They have comprehensive plans, including trip protection and cancellation coverage, medical coverage, damage or loss of luggage, and emergency evacuation. Covers over 200 adventure activities.
IMG Global Insurance
This company offers coverage for doctors, hospitals, emergency medical evacuation, travel delays, natural disasters, and lost luggage. They also provide coverage for COVID-19 emergencies. This is best for people living overseas longer than short-term travellers.
They offer lots of plans to choose from, including long- and short-term options.
Allianz Travel Insurance
This is one of the best companies. They have different options for single trips and multi-trips, and children below and above 17 when travelling with parents or grandparents are covered as well. They offer coverage for trip cancellation, travel delays, rental car insurance, medical assistance, and evacuation.
The Cheapest Travel Insurance Companies
Many companies offer exclusive and comprehensive coverage at affordable prices. Here are a few with the best coverage:
Travelex is the best overall when it comes to travel insurance. They offer the best service at an affordable price. Travelex offers you or your family extensive coverage at competitive prices, and lids are included at no extra charge. They offer low prices for high-level coverage. They have multiple plan options with customizable features.
Allianz travel insurance
The company offers one of the best comprehensive coverages for frequent travellers at a low cost per trip. They also provide annual or single-trip plans. But do not cover extended travel periods. Some annual plans have per-trip limits, while others have annual limits.
Insure my trip.
Adventure travellers are well protected by this company. They provide coverage for medical and emergency evacuations. Protect your luggage while travelling. You can find low-cost-per-trip coverage or customise a plan to meet your needs so you don’t overpay for coverage you won’t use.
This company offers multiple options to protect your cruise while on vacation. However, benefit limits are low for a trip interruption for any reason. Pre-existing conditions may not be covered in some cases. However, there are many cruise insurance plans to choose from.
Geoblue offers multiple options to buy travel medical insurance coverage for a lower price than a full travel insurance package. It offers full medical coverage on its own if you don’t need additional coverage. It primarily covers medical costs.
Frequently Asked Questions
Should I buy travel insurance?
Yes. Many people think of it as an unnecessary expense. However, the risk of emergency medical evacuation is higher if you are travelling away from home. In some cases, you can also get compensation for the loss of luggage.
What is travel medical insurance?
This mostly does not include trip cancellation, but it mainly focuses on medical benefits while going on a trip. This insurance plan is more suitable for people who are travelling for a longer duration outside of their home country.
What is the average cost of travel insurance?
The price is dependent on which insurance provider you choose for coverage and how much coverage you desire. If you choose a comprehensive plan, you will generally spend between four and eight percent of the total trip price.
If you spend thousands of dollars on a trip, it is probably worth spending a couple of hundred more to make sure you get your money back in case something goes wrong by using one of the best travel insurance policies. It can provide you with peace of mind and save you lots of money if the need arises to cancel your trip for important reasons.