Travel Insurance is purposed to cover the risks related to possible unwanted and unforeseen occasions during your travel. Whether you travel internationally or domestically, you may face the variety of problems starting from health issues to theft of your personal belongings, documents, money, etc.
We all work too hard to let any unpredicted occasion spoil our vacations, so the Travel Insurance is the smartest way to get the full peace of mind and enjoy the trip. This little piece of paper called Insurance Policy brings confidence and knowledge that possible loss and bills associated with insured perils will be covered guaranteed.
That is why, by the way, we also buy health insurance – to be sure we are protected in case of unplanned medical expenses https://familydoctor.org/health-insurance-understanding-covers/.
Types of Travel Insurance Policy
Single-trip travel insurance
This type of policy is valid for the one single trip, where the period of the trip is specified and the policy covers risks only during that particular period. So, if you travel rarely or you don’t travel at all – the single-trip travel insurance will come in handy for your occasional trip. It’s cheap so you won’t overpay for unneeded terms.
Annual/multi-trip travel insurance
Multi-trip travel insurance speaks for itself: it is purposed for multiple trips during the year and it’s the best option for those who travels often (in terms of cost efficiency).
Long-stay travel insurance
If you travel often and for long periods, your best option is long-stay travel insurance which is purposed for trips exceeding the maximum number of days for single trip Insurance Policy. Normally you should buy this type of policy if your trip exceeds 30 days (in a row).
Backpacker insurance/gap year insurance
Those two types of Insurance are for extended trips and for those people who consider traveling as a lifestyle. It covers some specific risks along with typical perils.
What Travel Insurance may cover?
Depending on the type of policy you are going to purchase, the following risks are covered:
Stolen or lost baggage
The cost of your luggage will be covered in case it doesn’t exceed the amount mentioned in your Insurance policy. So, always check the limits and adjust your baggage to it (your precious belongings like jewelry, electronic devices etc).
When it comes to pre-existing medical conditions, you’ll have to pay an additional amount to get that covered. Typical medical coverage does not include pre-existing illnesses but only accidents, traumas and diseases gotten during the trip.
It’s also wise to get yourself a Life Insurance: read here about reality and myths of life insurance http://www.investopedia.com/articles/pf/08/life-insurance-myths.asp.
If you will be involved in legal cases due to various reasons, starting from issues with customs to cases against you being the reason of the third-party injury, your legal expenses are covered. Still, find out what exclusions are listed in your policy.
If you will cause an injury or harm to property or belongings of the third-party (to other people), the policy covers the legal expenses and medical bills. Of course, it’s all fair for accidental occasions. The policy does not cover the damage caused by you on purpose.
Delayed or Missed departure
If you have missed your flight due to reasons which do not depend on you (stolen documents, severe weather conditions, etc.) – the cost of your tickets will be covered. Some related losses may be covered as well, so read the detailed list of coverage in your policy.
Find out more smart tips about the Flight Delay Compensation http://www.gocompare.com/travel-insurance/flight-delay-compensation/.
If your trip is canceled due to your medical condition, injury, or natural disasters – the cost of your trip and related losses are covered. If the trip is canceled because you have changed your plans or your financial situation has changed or because of troubles with the tour operator – those aspects will not be covered.
Your policy will cover expenses in case you had to cancel your trip due to an extended departure delay. That doesn’t mean you will get coverage if you’ll just cancel an inconvenient flight. You will get coverage in case the delay is critical for the reason of your trip (like you are late for an event or appointment, so now there is no reason to take a trip at all).
Curtailment covers expenses which are resulted from the trip cancellation due to your (or your relative’s) health issues or death.
Adventurous pursuits are activities which are considered potentially dangerous and traumatic: bungee jumping, horse riding, diving, etc. Regular travel insurance does not cover issues resulted from adventurous pursuits, so you might need to consider buying a special type of policy to cover risks mentioned above.
Note, that your insurance company may refuse coverage if they have found out you were willingly exposing yourself to the certain kind of risk.
Scheduled airline failure insurance (Safi)
If your airline simply stops working it will be considered as a factor which is out of coverage. In order to protect yourself from such type of risk, you need to buy special scheduled airline failure insurance (Safi).
Recreational winter sports and risks related to that are covered, except in a case of extreme winter sports.
If you are planning a wedding abroad you are recommended to add this aspect to the list of coverage. Bring yourself a peace of mind by insuring your wedding rings, attire, presents, etc.
Whether you own or rent a business equipment which you take with you to the trip – add it all to your coverage list. Typical business travel insurance covers it.
Read more here http://www.gocompare.com/travel-insurance/business/.
Senior Travel Insurance
Depending on the Insurance Company you are cooperating with, it may not provide a travel coverage if your age is above 65. In that case, you might need to consider purchasing a special Senior Travel Insurance.
As you may see the huge list of risks is typically covered, but you should always be aware of exclusions which are usually written with small font.