A significant amount of planning is involved when taking a vacation. You need to decide on a location, and you need to make flight arrangements.
You will also need to pack, and you need to plan activities for when you arrive. Unfortunately, no matter how well you plan, unexpected events can still occur; therefore, it is a good idea to purchase travel insurance.
Purpose of Travel Insurance
Travel insurance provides financial coverage for things that might occur while traveling. The insurance might cover flight cancellations, medical bills, lost luggage or bankruptcies. Some of the other events that might be covered include acts of terrorism and natural disasters. You normally purchase travel insurance as soon as you book your trip, and you will have peace of mind that you will be protected financially if tragedy should occur.
Types of Travel Insurance
There are several types of travel insurance offered. The three main types of travel insurance include:
- Medical Coverage: This policy provides coverage if you become sick or insured while on your trip. You could also be covered for the ambulance or helicopter ride to the hospital. Some policy will provide death benefits to your beneficiaries if you should die while on your trip.
- Trip Cancellation: If you need to cancel your trip because you are sick, trip cancellation insurance will cover the cost. You will be reimbursed for expenses you have already paid. You are also permitted to cancel your trip if a family member passes away.
- Baggage Insurance: If your luggage is lost damaged or stolen, you will be reimbursed. In addition, this policy will provide coverage if you have an accident in your rental car.
Reasons to Purchase Travel Insurance
Here are some reasons why travel insurance is important:
- You need to cancel your trip: You might become ill, or a relative might die, causing you to cancel your trip. If you have trip cancellation coverage, you will be reimbursed.
- You do not make your connection: Your flight might be delayed, so you miss the connecting flight, so your travel insurance allows you to take another flight.
- Your flight is cancelled: You will be given money to purchase a new flight home.
- A natural disaster: If a tornado, heavy snow or hurricane affects your destination, travel insurance will assist you in arranging for a different location.
- Terrorism: Unfortunately, acts of terrorism are becoming more common, so you will be reimbursed for any money you have sick.
- You become sick or hurt: If you should become ill or injured while on your trip, your medical expenses will be paid.
- Lost luggage: Baggage travel insurance will help you purchase new clothes and personal items.
- Bankruptcies: If the airline, hotel or any agency associated with your journey files for bankruptcy, you will be allowed to recover the expenses you paid especially if your booked tickets are non-refundable.
How to Purchase Travel Insurance
To buy travel insurance, you need to go online to research different companies. Decide what type of coverage you need, and compare plans and rates. You can also get quotes from numerous companies, or get advice from your travel agent and you can decide which one is best for you. During your trip, you need to keep a copy of your travel insurance policy.
Filing a Claim
If you need to file a travel insurance claim, you need to provide proof to support your claim. If you need to cancel your trip because of illness, you need documentation from a doctor saying you are too sick to travel. You also need documentation from a doctor if you needed medical treatment while you were on your trip. You need to keep documentation for everything that happened while you were away. Some of the documents you need might include proof from the airline your luggage was delayed, police reports and receipts.
If you need to file a claim, contact your insurance company as soon as possible.