Travel insurance is an essential part of any holiday planning. Suppose you were on a ski trip and broke a leg on a black run. Your travel insurance could help cover the medical expenses associated with the injury. Or, perhaps you lost your luggage somewhere between check-in and boarding the plane. With the right travel insurance policy, you can be prepared for anything that life throws at you while on your travels.
What the Best Travel Insurance Should Include
When it comes to travel insurance, there are many different types of plans available from different companies, so you need to ensure that the plan you choose meets your needs. You don't want to encounter an emergency on holiday and then find out that your trip insurance doesn't cover the cost.
There are two main types of travel insurance policies: comprehensive coverage and flexible coverage. Comprehensive coverage is more straightforward and usually covers travel medical insurance, trip cancellations, lost luggage, and some travel-related accidents. Flexible coverage allows you to tailor the policy to meet your needs and the kind of holiday you’re taking.
Here are some of the key elements that you should look for in a travel insurance policy:
Medical expenses
When selecting the best travel insurance, one of the most important features to look for is travel health insurance and medical coverage. Medical bills can be extremely expensive if you’re injured or become ill while traveling abroad, so make sure your insurance offers a high coverage limit. The best international travel insurance policies will reimburse all medical expenses incurred during your trip, including hospital stays and prescription medications.
Loss or theft of personal items
Travel insurance will cover you up to a specified monetary value if you have valuable items stolen or lost during your travels. This includes electronics like laptops, tablets, and smartphones.
However, in many cases, a standard policy will only cover the item up to a certain amount, which may not be enough to cover the cost of a new device. In these cases, you may choose to purchase additional coverage. Do check your home insurance policy first, though, as some plans already include the loss or theft of personal items when you are abroad.
Trip interruption or cancellation
This type of policy can help protect you from financial losses if you need to cancel or interrupt your trip due to unexpected circumstances. These could include illness, severe weather, terrorism threats, or flight cancellations.
Emergency evacuation services
The best international travel insurance companies will also provide emergency evacuation services if you need to be transported to a medical facility due to injury or illness while abroad. Depending on the plan, this could also cover transportation and accommodation fees.
24-hour assistance services
If you need help or have a question while traveling, some of the best travel insurance companies provide 24-hour assistance services. Depending on the company, these can help you with anything from translation services to medical advice and can also provide a lawyer, if necessary.
What Is Not Included in Basic Travel Insurance Plans
While insurance for your travels can help in some scenarios, it's important to remember that there are many things that won't be covered. However, travel insurance plans can be pretty flexible, and in most cases, you can add extra coverage. Generally, the following types of activities will not be covered by basic trip insurance policies but can be purchased as additional extras.
Rental car coverage
If you’re renting a car while traveling, it’s important to include rental car coverage in your travel insurance policy. Many standard United States insurance policies only cover car rental in the US and Canada, so check that you're covered for the country you’re traveling to. Rental car coverage pays for the cost of repairing a car that has been damaged due to a collision, vandalism, or a natural disaster.
Adventure activities
If you plan on participating in “adventure activities” such as rock climbing or scuba diving while away from home, it is important to make sure your travel insurance includes coverage for these activities. Many policies cover some of these activities but not others, so make sure to read the fine print before purchasing a plan.
"Cancel for any reason" coverage
This add-on to the basic plan allows you to cancel your trip and receive a reimbursement if you don’t have a valid medical reason. This can be expensive but provides additional peace of mind. It is important to note that this type of coverage only covers a portion of the trip cost—usually around 75% of non-refundable costs.
Concierge service
Some travel insurance companies include a concierge service at an additional cost. This type of service can provide you with access to a personal assistant who can help with a variety of needs while traveling, such as making reservations, booking tours and activities, arranging transportation, or even booking tee times for golfing holidays.
Accidental death and dismemberment coverage
This is an optional add-on to travel insurance policies and provides coverage in the event of death or dismemberment due to an accident while traveling. This type of policy usually pays out a lump sum benefit if the insured person dies while abroad. It can also provide additional benefits if the individual survives but has suffered major injuries such as the loss of a limb.
Your life insurance policy may already cover this, so make sure to double-check it before adding this coverage to your travel insurance plan.
How to Pick the Best Travel Insurance
When you compare travel insurance plans, there are several factors you should consider. For example, does the policy cover all the activities you plan to do? What is the cost of the policy, and are there any hidden fees? What is the claims process, and how long will it take to pay out? Is the customer service team responsive and helpful?
Below are some factors you should consider before purchasing a travel insurance policy.
Destination
Some destinations are considered riskier than others by insurers. For example, if you’re traveling to a country where there’s a high risk of natural disasters or political unrest, it’s crucial to make sure that your trip insurance plan includes coverage for these types of events.
Duration
Many travel insurance plans are aimed at those needing cover for a one-off trip of a few weeks’ duration. If you travel frequently or are going abroad for an extended amount of time, consider an annual international travel insurance plan, which covers multiple trips throughout the year.
Activities
If you plan to do adventurous sports like scuba diving or mountain climbing, it’s vital to ensure that these activities are included in the policy. Skiing and snowboarding may also require additional coverage.
Budget
Travel insurance can be expensive, so it’s important to find a plan that’s good value for money. However, cheap plans are often cheap for a reason and may not offer adequate coverage.
According to the US Travel Insurance Association (UStiA), the usual cost of travel insurance is between 4% and 8% of the total cost of the trip and depends on factors like destination, the length of your trip, and your age. Look for a balance between cost and coverage so that you can have the peace of mind of knowing you’ll be well protected in all eventualities.
COVID-19
Following the COVID-19 lockdowns, many of us are all too aware of the effects of the pandemic on travel plans. And although travel is a lot easier now than in previous years, you should still consider COVID-19 when choosing your travel insurance.
Be aware that the risk of COVID-19 in any country can change quickly, and governments can implement travel bans or quarantine measures to curtail its spread at short notice. This could impact planned travel, so make sure you know exactly what you’re covered for when you choose your travel insurance plan.
Conclusion
Travel Insurance is a vital part of planning a trip. You need to make sure that you’re adequately covered when traveling abroad and that you’ve picked the best travel insurance plan for your needs. The key is to consider your budget, where you’re traveling to, what activities you will be doing, and how long you will be away before making your decision.
There’s a wide variety of policies available, so make sure to research different companies before purchasing travel insurance. Choosing the best travel insurance for your needs can be a daunting task, but if you know what to look for, you can be confident that you’ll be covered in the event of any unforeseen circumstances.