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Time to confess, I was not super excited about writing a post on buying travel insurance. In fact, I tried more than once but keep getting pulled away by other, more fun ideas. The thing is, this is an important post that needed to happen. I gave in, sat myself down with a giant cup of coffee (and later, wine) and got to it. The world of buying travel insurance can be confusing and difficult to navigate. There is lots of legal jargon and insurance industry wording to read though. I’m going to break it down into what the coverage options mean, what to look for in a policy, and how to buy one.
What Exactly Is Travel Insurance?
Travel insurance may be the least glamorous part of vacation planning, but it’s just as important as picking flights and hotels. As important as it is, it is also confusing for most of us. Think of it like car insurance. If you get in an accident, car insurance helps pay for the damages. Same thing goes with travel insurance. If something unexpected happens while you are traveling, the travel insurance provider helps financially.
Why Do I Need It?
As easy as it is to pretend everything will always go as planned, that is just not reality. Buying travel insurance covers us for those unfortunate mishaps that can potentially ruin a vacation. Some of the most common issues covered include:
- Trip Cancellation –One of the most common reasons for canceling a trip is unexpected illness. It can happen to any of us. If you pre-booked hotels, rental cars, or excursions it can be very hard to get your money back when canceling at the last minute. That is where travel insurance comes in. You can get reimbursed for a percentage of your flight, hotel and other missed activities.
- Health Coverage: I know what you’re thinking, “I already have health insurance, I’m good!” Unfortunately, many health care plans do not cover medical emergencies that happen internationally. Something as normal as food poisoning could land you in the hospital, and with an enormous bill not covered by your regular insurance. It can also help with filling emergency prescriptions of your medication that is lost or stolen.
- Missed Connections: Not only will travel insurance help with costs incurred when missing a connection, a reputable company will actually have a customer service line that can help you rebook.
- Theft: During a trip to Paris, my husband was pickpocketed..TWICE. If we had insurance what was taken could have been easily replaced. We didn’t.
- Lost (or just delayed) Luggage: Do you say a little prayer after tossing luggage on the belt, hoping to see it again on the other side? Travel insurance has you covered if you never see each other again.
What Types of Coverage Do I Need?
Medical and Liability are the most important aspects of a travel insurance policy. Make sure you are fully covered in these areas when picking a policy. I would suggest a minimum coverage amount of $20,000, but $100,000 is even better.
- Personal Liability: This is coverage for when you cause damage to other people or property and are being sued. If you hurt another driver in a car accident and they sue you, personal liability coverage will help with these costs.
- Accident and Sickness Medical: This is your hospital, doctor and dental care coverage. Simple surgeries can cost tens of thousands of dollars in some countries.
- Emergency Evacuation: If you get hurt in a remote area and need to be evacuated to a hospital, this is where emergency medical comes in. In addition, in the event of death it can cover returning your body home. I know that is super depressing to even think about, but shipping remains can be an extremely expensive financial burden on your loved ones.
To determine the right coverage for you, look at what a trip has (or will) cost to book and how much money would be lost if you had to cancel it.After that, think more about what you are doing and bringing. Up your coverage for lost baggage if you are carrying expensive items like tech or sporting equipment. How much would you have to spend if your luggage was lost and you had to repurchase everything?
Are you planning to do any potentially dangerous sports or excursion? Some companies offer additional coverage for risky physical activities. Carefully read through all the options and evaluate what makes the most sense for you.
When & How Do I Buy Travel Insurance?
First, the sooner you buy your plan, the better. Some travel insurance companies require a policy to be purchased within 10-21 days of booking a trip. Other companies will allow you to buy up until a day before, but you may not have access to all the benefits you would have had if booking early. The best option is to buy it before anything else, including flights and hotels.
Next, decide on a single trip policy or extended policy. For those of us who travel often, an annual policy can save a lot of money in the long run. You don’t need to know your exact destinations or travel dates up front either.
Finally, choose a company. Sadly, there are a lot of sketchy travel insurance companies out there. Take the time to fully research any company you are considering. Read reviews and check on any certifications they have. Find out what company underwrites their policy. The underwriter is the company that actually pays out the claims. If the underwriter is reputable, chances are the insurance company is too. After you have made your selections, fully read the entire policy before buying. I know this is boring, but this is the time to figure out exactly what is covered. Don’t find out the hard way you’re not covered for something you thought was a given.
My Recommendation
What is the company I trust for buying travel insurance? World Nomads. Besides having affordable plans with different levels of coverage, World Nomads is said to have a superior customer service line (luckily I have yet to use it, but I’m sure I will some day!) I know most of us are on a budget and the idea of adding another cost to an already pricy vacation can seem counter intuitive. But think about it, you wouldn’t drive without car insurance right? I defiantly recommend buying travel insurance for any trip through World Nomads.
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