Like many others at this time of year, are you planning a trip? If so, you may want to look into purchasing travel insurance. No one wants to worry about what can go wrong while on vacation, but unfortunately, emergencies and accidents happen. Having travel
insurance can help ease some of the pain if things do go awry.
Travel insurance is intended to cover things such as medical expenses, trip cancellations, lost luggage, stolen items, accidents, and other losses that may be incurred while traveling. Choosing whether or not to purchase insurance and the type of coverage
needed can be tricky. Here are a few tips to help you decide.
Determining If You Need Travel Insurance
Before shopping around for travelers insurance, evaluate whether or not you need it. Peace of mind is really what you are buying. The type of coverage you need or plan to purchase should be realistic. For example, a weekend getaway close to home probably
doesn’t require travel insurance. However, a trip over 100 miles away may prompt you to look into travel insurance more carefully. Taking these questions into account may help determine whether or not to buy travel insurance:
- Are you traveling overseas or out of the country?
- Will you be participating in extreme sports?
- Are you spending more than $5,000 on the vacation?
- If an emergency arises, can you afford the cost of the trip back home?
- If you or your traveling companion gets sick, will you be able to afford medical care?
- Does your health insurance cover travel abroad?
- Does your credit card already have travel insurance provisions that provide comparable coverage?
Buying Insurance
Travel agents and airlines often sell travel insurance. While this may seem practical, purchasing coverage this way can be extremely costly due to commissions for the agents. In addition, if the airline or agency goes out of business before your trip, you
won’t have coverage. If you do decide to purchase insurance through anyone other than an insurance provider, shop around and carefully read and understand the fine print of the agreement before buying.
When you’re looking to purchase travelers insurance, you’ll find that coverage options are numerous. Policies may look identical, but the fine print and details may reveal huge differences in plans. It’s best to compare several plans and providers to see
what options are available. Some questions to ask travel insurance providers are:
1. What coverage is offered?
2. What restrictions apply?
3. How much does it cost?
4. If there is a serious medical problem or other serious event, what type of assistance does the insurance company provide?
5. What disasters are covered?
6. Who underwrites the policy?
7. What is the license number and information to verify that the provider is currently licensed?
8. When does the policy take effect and when does it end?
9. Is there a toll free 24-hour emergency assistance number to contact?
10. Are pre-existing medical conditions covered?
11. How do I file a claim?
Other Tips
In addition to checking your health insurance and credit card policies, also check your homeowner’s insurance provisions to avoid purchasing redundant coverage. It’s important to pay attention to any exclusions that may be included in the policy so you know
what conditions will void your policy. Only insure what you can’t afford to lose. If you are traveling with expensive electronics, such as a mobile device or laptop, don’t forget to include them in the policy.
Travel insurance can be a wise investment that can provide some security when you’re on a trip. Taking time to carefully examine if it’s the right choice for you when traveling to your next destination may save you money and worry.
Check with Business Consumer Alliance for reliability reports on a variety of businesses, including
travel and
insurance companies.
About Business Consumer Alliance:
Business Consumer Alliance (BCA) is a non-profit company that started in 1936. The broad purpose of BCA is to promote business self-regulation. BCA's mission is achieved by assisting consumers in resolving complaints with businesses and using that complaint
information, along with other relevant information such as customer reviews, to forecast business reliability. With community support, BCA can identify trustworthy and ethical businesses and warn the public to avoid unscrupulous businesses whose purpose is
to defraud the marketplace. BCA also helps businesses promote themselves by providing services and tools to protect their business and reach out to their customers. BCA obtains its funding from member businesses who support the mission and purpose of the organization
and who agree to abide by high standards of ethical business practices.