Travel insurance makes sense if you want to protect the money you’ve paid for a vacation. But it is another expense, and you’ve already laid out a lot of cash.
Several Types of Travel Insurance
There are five types of coverage that are associated with travel insurance. And although, the covered reasons for the insurance going into effect may depend on the carrier, the basics are the same with most companies.1) Canceled Trips
Most people are concerned about this. If they have to cancel their trip or something happens in the world, like a pandemic, they don’t want to lose their money.- sickness, injury, family member, or traveling companion
- hurricane damages destination
- laid off from work or required to work
- terrorist incident in destination city
- travel supplier bankruptcy
- called for jury duty
2) Medical Emergencies Abroad
This is often overlooked. Your private insurance will probably not cover you abroad. Even if you’re on a cruise ship. If it flies under a foreign flag (most do), you won’t have medical coverage.Travel insurance covers accidents and emergency medical and dental care.
3) Delayed Flights and Lost Bags
Although not a big deal, if your bag is lost, it can be. Baggage coverage reimburses you for personal belongings if your bag is lost or stolen.4) Additional Coverages
Travel insurance also provides miscellaneous coverages for:- life insurance
- rental car collision
- identity theft
- hazardous sports
Does Medicare Cover Travel Abroad?
Medicare won’t pay for health care or supplies outside the United States. Outside means anywhere except:- 50 states
- District of Columbia
- Puerto Rico
- U.S. Virgin Islands
- Guam
- American Samoa
- Northern Mariana Islands
If you’re traveling through Canada without reasonable delay by the most direct route between Alaska and another state and an emergency occurs, and the Canadian hospital is closer than the nearest one in the United States, Medicare should cover it.
How Much Is Typical Travel Insurance?
The cost of travel insurance depends on several factors. Some of these include:- trip cost
- age
- travel destination
- coverage levels
- trip payments
Age is another factor. Younger travelers are less likely to file a sickness-related claim than older travelers because they don’t have pre-existing conditions.
The number of people under a travel insurance policy will affect the cost. But it’s less expensive than buying individual plans. For example, adding one person to an existing plan increased the premium cost by 8.3 percent. With some plans, children are free.
Some destinations are more expensive if they’re in a remote area. That’s because of the potential for medical emergencies.
Where to Buy Travel Insurance
There are many places to buy travel insurance. If you book your trip through a travel agency, they may offer the option to purchase travel insurance. But some insurance companies are:Travel insurance is meant for one trip. But if you’re a frequent traveler, consider an annual travel insurance plan. They cover the same losses, but they offer the convenience of only purchasing it once.Travel Insurance Doesn’t Cover Everything
Buying insurance doesn’t give you carte blanche to cancel your trip. If you have a long-standing medical condition that prevents you from traveling, the insurer might not cover it.Travel insurance also won’t cover a canceled trip for reasons within your control. If you oversleep and miss your flight, you’re on your own.
And if you leave valuables in your checked luggage, they probably won’t cover it.
But each carrier is different, so check your policy.
The most important reason to purchase travel insurance is medical if you’re going abroad. If you need to be treated or repatriated, that could bankrupt you without insurance.
